Success Stories

Building Materials Manufacturing Company, with Multiple Divisions, Products, and Locations

Services – Communication Strategy, Change Management, and Branding

The Situation
Although faced with significant increases in health plan costs for a number of years, the company had simply absorbed the additional amounts internally.  Last year, though, with cost pressures continuing to mount, the company recognized it could no longer bear this burden alone.  As the first step in implementing a three-year cost-reduction strategy, the company introduced three completely new health plans – two with substantially higher employee premiums and, the third,
a high-deductible plan with company-matched FSA contributions.   

Key Challenges

• In a traditionally paternalistic environment, employees expected the company would continue to “provide for” their benefit needs and pay the greater share of the cost.
• Previous benefit communication had been limited to plan details, with no context for employees to appreciate skyrocketing benefit costs or the value of their program. 
• The two current health plans had always been similar.  Now, faced with three entirely new options, employees needed to "unlearn" what they knew before, and prepare themselves to deal with new issues and make sound, informed choices.
• With all-new health options, and no “automatic reenrollment,” all employees had to
  reenroll for coverage.

Our Approach
To successfully implement the new program, and lay the groundwork for acceptance of future change, Strategic Planning Associates took the following steps:

• Met with corporate executives, HR field managers, and other company leaders to gain their perspective on business issues, organizational culture, communication goals, and key program objectives.
• Created a new “brand” for both HR and the new benefit program – with a distinct identity and theme, ensuring instant employee recognition of related communications.
• Developed a communication strategy that engaged a broad range of corporate and field managers through a series of leadership updates.  Media included multiple versions of materials (e.g., posters, an announcement letter, newsletters, highlights brochure, enrollment kit, and employee presentation), many in three languages, to achieve the following objectives:
• Educate employees about the forces driving health care costs (nationally, as well as those specific to the company and its employee population) and gain their acceptance of the need to change
• Provide details on new plan options and important issues to consider in making benefit decisions
• Encourage employees to take action to reduce costs (e.g., use new wellness benefits and other resources to better manage, or head off, serious health conditions)
• Emphasize enhanced 401(k) features, including greater company match, to encourage retirement savings (and help offset the impact of news about increased medical premiums)
• Held a series of online meetings with employees unable to attend group session.

Results

• To the client's surprise, employees were open to, and accepting of, change, providing highly positive feedback to management.
• Over 99% of employees (an unprecedented number) enrolled online and on time.
• Slightly more than one-third signed up for the high-deductible plan – despite the fact that it was one of several options.
• Participation in the both the 401(k) and the Health Care FSA doubled.
• Managers and employees alike expressed appreciation for, and urged the company to continue, its outstanding communication efforts.

Strategic Planning Associates was retained to produce quarterly benefit newsletters on an ongoing basis and to develop communication materials for the following year’s Open Enrollment campaign (including rollout of an HDHP with HSA).