Considerations for Employee Benefit Programs In a Shifting Labour Market
Have you considered how to leverage your employee benefit programs in this shifting labour market?
Many recent headlines highlight the slowdown that is being experienced in the labour market, led by technology firms. Tens of thousands of employees have been laid off across North America as companies grapple with inflationary pressures and the prospect of a recessionary economic environment.
The layoffs have employees and employers alike concerned, as people’s livelihoods are on the line. And while employee benefit programs don’t make the headlines as frequently, they should be a key consideration in any layoff discussion.
Employee assistance through employee benefit programs can help alleviate pressure for both employees and employers.
If layoffs are required, an extension of health and dental benefits can be a compassionate option that employers can offer to departing employees. Alternatively, adjusting coverage provided through an organization’s employee benefit program could help contain company costs, and aid in offsetting any company downsizing.
It is important to note that approval from your insurance carrier is required before extending any benefit coverage for an employee being let go. See this Bank of Canada article on Restoring Labour Market Balance.
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