Real Talk About Change Communication Strategy
Manufacturing
Our client worried that new retirement benefit plan
changes could be seen as “pulling the rug out” from loyal
non-union staff who had helped fulfill customer orders
while union employees were on strike.
Our communication strategy won company-wide
acceptance of the benefit changes without workforce
disruption or negative media attention.
A leading automotive manufacturer
was engaged in a successful business
turnaround to enhance its ability to
compete globally and still keep a strong
U.S. manufacturing presence. A critical
initiative was to reduce legacy costs
associated with retirement benefits
for its salaried and non-bargained
hourly workforce, while still maintaining
competitive total compensation necessary
to attract and retain talented associates.
To achieve the company’s cost-saving
goals, management was faced with
implementing a number of retirement
benefit changes affecting active nonbargained employees and retirees:
• Freezing the defined benefit pension
plans
• Enhancing defined contribution
benefits, including a restored match,
age-based contributions, and a Roth
401(k) feature
• Eliminating retiree medical benefits
for any associates and retirees
younger than age 65
• Ending Medicare Part B premium
reimbursements for current retirees
• Reducing the company’s retiree medical
subsidy by lowering current caps
• Discontinuing company-paid retiree
life insurance
• Offering a high-deductible health
plan, enabling access to Health
Savings Accounts (HSAs) as a vehicle
to help employees save for retiree
medical expenses
Senior leadership realized that many of
these changes could be viewed both
internally and externally as major
takeaways — perhaps even as reneging
on an implied social contract. To further
complicate matters, the company had
just settled a 13-week strike, during which
non-bargained associates helped the
company meet its product demands on
the manufacturing lines. Implementing
these changes after the walkout could
have been perceived as “pulling the rug
out’’ from loyal associates who helped
fulfill customer orders while union
employees were on strike.
Management recognized that a wellplanned and implemented change
communication strategy was essential
to manage all these risks and to help
associates understand how the benefit
changes were critical to the future
viability of the company.
An Insightful Solution
We developed a communication and
change strategy, a detailed work plan,
and to provide assistance with project
execution. Our support included:
• Strategy development (objectives,
strategies, key messages, channels/
tactics, timing, and budgets)
• Facilitation and consensus-building,
working with a cross-functional
project steering committee over
several months
• Development of a detailed
stakeholder analysis identifying key
issues and responses for multiple
stakeholder groups, including shaping
of messages for the business case
• Drafting of multiple communications
with tailored messages for six active
employee groups, six retiree groups,
and three leadership audiences.
Communication deliverables included:
–– Announcement letters
–– Benefit bulletins describing details
of the changes
–– Questions and answers
–– Talking points for senior
management and HR
–– Senior leadership briefing
presentations
–– HR train-the-trainer materials
–– Town hall presentations for
meetings with associates
–– An online retirement modeling
tool that enabled associates to
compare their new benefits with
those they would have received
through the frozen plan
• Onsite project management and
strategic communication consulting,
including frequent updates to the
strategy and timeline based on
changing events
“The successful
communication of these
changes helped set the
stage for a graual shift
away from an entitlement
mentality to a new culture of
shared responsibility for our
employees.”
– Director, Compensation and Benefits
We took an issues-management
approach that refocused retirees on the
extensive Medicare marketplace options
and alternatives, with tips on how to use
the Centers for Medicare and Medicaid
Services (CMS) website and phone support.
For active associates, messaging
emphasized how the enhanced defined
contribution benefits could help
make their benefits “whole” through
proper saving and financial planning,
including the use of HSAs to help pay
for medical expenses during retirement.
The key messages underscored shared
responsibility in saving and investing for
one’s financial future, as well as the tools
the company makes available to assist in
retirement planning.
Real-World Results
Let’s Talk
Our communication strategy achieved
company-wide acceptance of the benefit
changes without workforce disruption
or negative media attention. Most
associates perceived the enhanced
401(k) benefits as a “win” and accepted
the business reasons for the retiree
medical and life insurance cuts. Retiree
calls were one-tenth of the anticipated
amount. The online retirement
modeling tool received high marks from
employees. The company’s project
leader remarked, “We were very pleased
with the low level of negative reaction
to the changes, and the communication
support gets a great deal of the credit.”
For more information about this project,
contact our Engagement Practice
consulting team at 1 866.355.6647 or
[email protected].
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