Explaining company benefits to employees

T has been recognized that one of the problems management has with fringe benefit programs is that the employees often are only dimly aware of the benefits that their employer provides them. To manv. what the

Story at a Glance

Company invites 50 employees, their husbands and wives, to a special dinner to explain their profit sharing plan and their pension plan as well as the health, dental and accident policies .... goal was to make sure employees understood the benefits provided so all could get the maximum benefit from each plan.

numbers say on the paycheck is about all they perceive, no matter how handsome the additional benefit program may be.

Recognizing this, the Barr Lumber Co. of Los Alamitos. Ca.. recently attacked the problem head-on by having a dinner party for all oftheir sales, office and store personnel. In all, more than 50, including wives and husbands of employees, met for cocktails, dinner and a concise explanation of what was being provided by Barr Lumber Co. for its employees.

The firm's profit sharing plan and the company pension plan got the first airing, with questions answered and a statement of account for those participating presented. With all their employee programs, Barr wanted to make certain that both the husband and wife were fully versed in what was available to them so they could derive the maximum benefits from the program. In the case of the health and accident policies, the company pays the entire amount, none is deducted from the employees paycheck.

Just as the man from the insurance company was beginning his review of Barr's health and accident plan an unintended and unhappy example was provided of how one never knows just how important a health policy can be.

Employee Art Mack, sitting in the audience, was stricken by a heart attack and had to be rushed to the hospital. We are happy to report that he is recovering nicely and that, yes, he was and is covered under the company plan.

The firm is privately owned and is headed by George Barr, who succeeded his father, the late Wilbur Barr, approximately three years ago. The firm, one of the largest in town and three blocks long, was founded bv O.H. Barr 74 years ago.

Exlro Expense Insursnce For Extro-Ordinory Needs

The survival of lumber and build. ing materials oriented businesses in a crisis depends on their ability to provide continuous service.

In the event of a fire, for example, such service-type businesses must be able to swing right back into operation. Any prolonged delay in starting back up could give cuslomers a chance to find substitute suppliers or allow competitors to grab off choice accounts.

While many of these businesses may have their physical plant and equipment adequately covered byvarious forms of property insurance, says the Insurance Information Institute, they may not have the money necessary to cover the sometimes enorrnous expenses of maintaining their services rvithout interruption.

For many of these service-type businesses the money, when needed, comes through "extra expense" insurance.

For example, if the cost of operation out of temporary quarters is greater than normal costs, the differ. ence will be paid by the "extra ex' pense" insurance.

Similarly, the cost of overtime paid to workers to get the permanent plant back into shape or to keep up production under emergency conditions also will be picked up by the coverage.

To meet commitments it might be necessary to "contract out" certain work. Here again, added costs are covered by the insurance.

And any monies spent to locate needed machinery and materials also are covered by the "extra expense" policy.

In addition, "extra expense" in' surance picks up the tab for many miscellaneous costs that may be incurred to keep the business going-in'