Kristine Karnath
US Director Of Benefits
Moog
Episode 134
The Hidden ROI of Care: Transforming Manufacturing with Employee-Centric Benefits
Current chapter: Built by People podcast features insights from world's top HR leaders
Built By PeopleJune 23, 2025 · 21:16
Thesis
“Innovative and employee-centric benefits design, even in non-traditional environments like manufacturing, can create win-win situations for both employees and the company by controlling costs and enhancing well-being. Career growth is often found by being present and open to opportunities rather than rigidly adhering to a predefined path.”
Show notes
When Kristine Karnath first read about on-site medical centers, her reaction was immediate: "No way. There's no way we're doing this." Over twenty years later, she is the person other benefits leaders call when they want to understand how to build one. It's a story about how the best benefits innovations often look impossible before they look obvious — and why the person in the room willing to say "I changed my mind" is usually the one who gets results.
Kristine came to benefits through finance, which means she's always framed employee wellbeing in terms that CFOs understand: cost avoidance, productivity multipliers, and long-term spend reduction. Moog's on-site medical centers didn't happen because leadership cared about employee health in the abstract. They happened because Kristine built a case that made the business math undeniable — and then did the hard work of helping employees and managers actually trust what they were being offered. Physical trust-building: letting employees walk through the facility, meet the providers, understand what the visit experience would feel like.
Her work on Moog's unlimited vacation plan — extended to manufacturing employees, not just white-collar staff — is equally instructive. The challenge wasn't designing the policy. It was shifting the managerial mindset that equated physical presence with productivity. That shift required deliberate communication, clear expectations, and the conviction that treating employees like adults produces better outcomes than monitoring their hours.
- Building an on-site medical center from idea to operations — the business case, the logistics, and the trust-building required
- Win-win benefits design — how to structure programs that genuinely serve both employees and company financial goals
- Extending unlimited vacation to manufacturing — the mindset shifts required when your workforce is hourly
- Employee-sourced innovation — how a grassroots idea became a major strategic initiative
- Benefits as a career — why "nobody plans to get into benefits" but the work is more strategic than most people realize
Previ is a private pricing network that is free for companies to launch and maintain. It saves employees $2,200/year on essential services like their cell phone and auto insurance bill. Visit here to learn more.
What you'll take away
- 1Proactive benefits innovation, such as on-site medical centers, can lead to both cost control for the company and enhanced quality care and convenience for employees.
- 2Successfully implementing large-scale benefit changes, like an unlimited vacation plan for all employees including manufacturing, requires significant effort in shifting manager and employee mindsets about productivity and time off.
- 3Employee-sourced ideas can be powerful catalysts for significant strategic initiatives if the company culture is open to considering them.
- 4When designing new benefits, it's crucial to understand cultural fit and address potential employee skepticism through transparent communication and physical demonstrations.
- 5Career development often benefits more from being present, open to unexpected opportunities, and self-driven innovation rather than strictly adhering to long-term, rigid career goals.
What most organizations get wrong
- •Implementing an 'unlimited vacation plan' for an entire workforce, including hourly manufacturing staff, which is noted as uncommon in the industry.
- •Acknowledging that the company initially had too much involvement in hiring medical professionals for on-site centers and that trusting the vendor more led to better outcomes.
In Kristine's words
“I always joke that nobody actually ever plans on getting into benefits as a career.”
This quote highlights the often serendipitous nature of HR career paths, particularly in specialized fields like benefits.
“I read the article and my initial reaction was no way. There's no way we're doing this.”
This shows the initial skepticism towards a significant innovative idea, emphasizing the need for thorough research and a shift in perspective.
“I think any time in the benefits area that you can have a win-win is beneficial, and it doesn't happen often.”
This quote encapsulates a core philosophy of the guest, emphasizing the rarity and value of benefits that truly serve both the company and employees.
“We don't call it that here, but that's essentially what it is. So our employees have no limit on the amount of vacation that they can take.”
This highlights a bold and uncommon benefits strategy, particularly for a diverse workforce including manufacturing, challenging traditional PTO models.
“Sometimes they're so focused on that goal. They want to be at a certain grade or a certain job by a certain age. And sometimes they end up missing what's right in front of them and opportunities that are in front of them because they are so focused on that future.”
This offers valuable career advice on the importance of presence and adaptability, contrasting with rigid goal-setting.
The problems this episode addresses
- •Companies struggling with managing a multitude of disparate PTO plans resulting from acquisitions, leading to administrative nightmares and inconsistent employee experiences.
- •Organizations seeking to control rising medical costs while simultaneously enhancing the quality and accessibility of healthcare for their employees.
- •Challenges in effectively communicating the value and nature of new, innovative benefits (e.g., on-site medical centers) to employees and leadership to overcome skepticism.
- •Difficulty in recruiting and retaining medical professionals for on-site clinics who not only possess clinical skills but also align with the specific company culture and operational model.
- •Resistance from managers and employees in adapting to new policies, such as unlimited vacation, requiring a significant mindset shift around productivity and time off.
In this episode
Built by People podcast features insights from world's top HR leaders
Built by People
Christine Johnson shares a little bit more about her career journey
Exploring Your Career Journey
Moog implemented on-site medical centers from concept to construction
Moog Company's On-Site Medical Centers
Christine, what challenges did you encounter while establishing these medical centers
Challenges of Establishing Medical Centers
On-site medical centers provide benefits for both employees and the company
Employment Benefits: On-Site Medical Centers
Christine, beyond medical centers, what other innovative benefit solutions have you implemented
Benefits implemented at Covanta Health System
Christine, what parting advice would you like to share with our community
A 20-Year Employee's Ending Words
Topics covered
Organizations and entities mentioned
Full transcript
Expand transcript (0 words)
Transcript is not available yet.