Powerful Change Management Communica4on A Benefits Case Study

Powerful Change Management Communica4on A Benefits Case Study

Agenda The Story (Case Study) Change Management Communica7on Tools Benefits (Within the Case Study) Revisi7ng the Case Flex Plans Flex Plan Design Principles Cost Containment Strategies Communica7ng Flex Plans Messaging Cau7on Zone Last Thoughts / Q&A

The Story Wellington West One of the largest and fastestgrowing independent full service wealth management firms in Canada and an award winning employee owned firm.

The Story Benefits Plan Popular with employees (some concerns) Out of date plan design (design was outgrown by the firm) Cost out of control NOT SUSTAINABLE Benefits Plan Design Change Necessary

Poll 1 Benefits costs and price increases are not sustainable. As a result, the decision has been made to reduce or eliminate coverage for a popular nice to have benefit. Do you:

Poll 1 a) Communicate benefits costs are not sustainable and that measures are required to ensure the long term survival of a meaningful plan. b) Conduct focus groups to an7cipate employee reac7on and then prepare a corporate communica7on based on the feedback.

Poll 1 c) Communicate that the gravy train is over and employees should be thankful for the 7me when they had excessive benefits coverage. d) Convene the benefits commi[ee to gain their support and endorsement of the decision before communica7ng to the rest of the organiza7on.

Communica7on Tools Crea7ng the Need For Change Explain the why Explain the why before presen7ng any possible solu7on

Communica7on Tools The Ownership Advantage It is be[er to own than to be owned Charlie Spiring WIIFM WIIFW Gaining Employee Ownership

Communica7on Tools Transparency & Collabora7on If you have owners, and; If your owners understand you have a problem, then: Share the problem and proposed solu7on, but; Be prepared to change or modify the solu7on

Communica7on Tools The Valuable Role of Opinion Leaders

Communica7on Tools Quick Victories

Revisi7ng Benefits Goals Organiza7on s Vision: Be the #1 Independent Wealth Management Firm in Canada Historically, plan was used for a[rac7on and reten7on Plan goals changed as firm evolved but cost management challenges persisted from previous goals Unique needs of the plan members not adequately addressed

Flex Plans A Flexible Benefits plan exists when a plan sponsor offers plan par7cipants any degree of choice Types of Flex Add On Opt Up/Opt Down Core plus Op7ons Modular Cafeteria style

Flex Plan Design Principles Drives an even spread of risk between op7ons Creates meaningful incen7ves to make tradeoffs Is able to coordinate with a spousal plan with reward for doing so Prac7ces in place to prevent adverse selec7on

Discovery Flex plan s original design intended to maximize a[rac7on / reten7on in a highly compe77ve labour market Organiza7on had a culture of ownership and accountability Poli7cal, regional and cultural issues needed to be considered

Discovery Benefits Strategy (Philosophy) Upper middle market posi7on Meaningful coverage op7ons and protec7on for plan members and their families Sustainable in the long term Wanted plan to align with their wellness focused culture

Discovery Plan Member Advocacy Gathering informa7on from plan members and their families in real 7me Trouble shoo7ng current plan, claims assistance Iden7fying employee needs, pain points and sacred cows with plan member popula7on Gives a safe and confiden7al forum for plan members to reveal their true feelings about the plan, carrier, service to a third party True extension of service of the HR department

Analysis Comprehensive plan review Benchmarked to market Claims review Organiza7onal Feedback HR Feedback & Alignment Plan Member Advocacy Data

Cost Containment Strategies Drug Plan Management Principles Paper versus plas7c determines the amount of cost control levers you have to work with Ensure that the strategies you employ align with your overall benefits strategy Consider your employee popula7on make up and where they live

Cost Containment Strategies Drug Plan Management Tools Drug Plan Provincial or Managed Formularies Generics or Lowest Cost Equivalent Coinsurance Tiered coinsurance Per script deduc7bles

Cost Containment Strategies Drug Plan Management Tools Dispensing fee maximums Coordina7on with other sources of coverage Spousal coverage Provincial, Federal programs Pa7ent Assistance Programs Case management, Prior Authoriza7on Preferred Providers

Cost Containment Strategies Disability management Early interven7on Review and update absenteeism and disability policies Engage with carrier in a collabora7ve rela7onship around disability management Ongoing communica7on

Cost Containment Strategies Encouraging smart consumerism Communicate with your plan members about how their decisions about the prac77oners they work with and the products and services they purchase impact the plan Provide informa7on about what the differences are Implement cost control measures to encourage smart consumerism without sacrificing access to supplies and services

Transi7on Renego7ated expenses and rates with carrier Implemented Disability Management program and regular communica7on and status mee7ngs with carrier Created Benefits Commi[ee with crossorganiza7onal representa7on Implemented cost containment strategies for immediate cost savings without impac7ng access to supplies or services

Transi7on Cost Containment and Plan Enhancements Plan Member Advocacy ac7ng as an extra layer to suppor7ng employees and HR Communica7on focused on ownership of plan to mirror ownership culture Consistency of messaging Members of Benefits Commi[ee became Champions in their work groups and regions Focus on smart consumerism

Communica7ng Flex Plans Start with Me Clearly state required ac7ons and deadlines Understand whether changes you are communica7ng affect all regions and op7ons, or should your communica7ons be segmented Help people understand how long their flex decisions will define their coverage Locked in periods; Life events Drive decision making through relatability

Messaging

Poll 2 The decision has been made to discon7nue casual Fridays un7l the summer. Do you:

Poll 2 a) Communicate that casual Fridays are going to be discon7nued as people seem to be taking casual days for granted and don t appreciate them anymore. b) Communicate that we want to keep casual days special and will re introduce them in the summer months.

Poll 2 c) Announce no more casual Fridays in combina7on with an announcement for the next social commi[ee event. d) Send out a reminder about the dress code and advise these expecta7ons are to be met every day of the week.

Messaging Spin is not a 4 Le[er Word, ok it is but you know what I mean. Communica7ng a message in a way that can / will be received as well as possible. Communica7ng from WIIFM / WIIFC perspec7ves

Messaging The Power of Words

Cau7on Zone Pass the Buck Sandwiches (7ed selling) Do what I say, not what I do HOME STRETCH!

Last Thoughts Communica7on is not formulaic. Know your organiza7on and your culture. Use a hammer only when you need a hammer.

THANK YOU! Ques7ons?