Recession Proof Benefits Recruitment

Recession-proofing your benefit plans "does not mean seeking solutions to 'switch on' when a recession hits and 'switch off' when the economy recovers, because it's not always clear when recessions begin and end," said George Lane, a principal of HR consultancy Mercer, during a presentation at the 2008 Benefits Forum and Expo held in National Harbor, Md., in late September. Instead, he explained, effective recession protection involves:

* Reducing benefits costs so that, if a recession does hit, your benefit plans might not be the first place senior management looks to make changes.

* Communicating often and honestly with employees.

* Focusing on targeted strategies to recruit and retain an optimal workforce for long-term success. "Your best employees with the most 'in demand' skills are the ones who can find another job despite the economy-and the ones you want to keep, even when times are tough," Lane said.

Lane cited the annual layoff forecast from Career Protection, an employment advisory firm, showing that layoffs increased 69 percent from August 2007 to December 2007 and were expected to increase another 37 percent for 2008. But "recessions don't last forever," he observed, and "in fact, they average less than a year. Reductions in force will have a near-term impact on the bottom line, but will you have the talent you need to be properly positioned when the economy recovers, or will they be with another employer?"

Reassuring Employees

To address her employees' increasing stress, said Maia Lucier, director of compensation and benefits for Dimension Data, a global IT services firm, the firm has begun holding monthly "Think Financial Wellness" conference calls, she explained. Family members are invited to participate in the 30-minute calls, conducted with the firm's 401(k) financial advisor.

The firm emphasizes health care expenses in its employee communications as well, often relying on colleague testimonials, Lucier explained, on the advantages of using mail order drugs or the nurse hotline to save money and reduce unnecessary medical visits while promoting preventive care.

Total compensation statements are another communications opportunity to reassure and engage employees. And an employee webcast touts career development opportunities.

Finally, "make your line managers part of the effort," Lucier advised, to communicate the value of benefits and compensation policies and offerings.

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Recession Proof Benefits Recruitment