Alcatel Lucent Telecom has used a flexible benefits scheme to harmonise its perks post-merger and introduced online total reward statements to help staff understand the changes.
Alcatel Telecom and Lucent Technologies merged last December to form Alcatel Lucent Telecom. Alcatel’s flex scheme has since been rolled out to all 1,400 employees after being revamped to include benefits to which Lucent’s staff had previously been entitled.
Richard Tyler, compensation and benefits manager at Alcatel Lucent Telecom, said: “We wanted to get rid of any ‘them and us’ idea. Harmonising benefits using flex was a good way to do that.”
Before the merger, Alcatel and Lucent both provided private medical insurance, but their level of cover differed. PMI will remain a core benefit for all staff, but they can now increase or reduce their level of cover through flex.
Pensions have also been harmonised. Lucent’s stakeholder pension was closed to new members and Alcatel’s trust-based defined contribution scheme was opened to all staff. The firm contributes 1.5 times the amount contributed by staff, up to an employer contribution of 9 percent.
The last stage of harmonisation, completed in July, resulted in common risk benefits, including life assurance at four-times salary and 75 percent of pay for long-term disability.