Human Resource Management
Chapter 13 Application Case
1. One way to cut the cost of the benefit package is by offering prevention programs to employees. The company can actually decrease the number of illnesses by offering a health care program that supports frequent checkups and immunizations. The number of serious illness would be reduced, therefore cutting costs in the long run. Providing health promotion programs also help companies prevent illness through educating employees on things like how to help manage stress, and how to improve senior health. Another option that could be looked into is contribution health care plans. Giving employees a certain amount to use for co-payments or medical costs or anything else that is medical related, instead of a specific package that has open-ended costs can save money too. The grocers could negotiate much more strictly with their health care insurance providers to save costs. And, most obviously bringing down the costs would include requiring employees to pay higher premiums, deductibles and co-payments. 2. The downside of having two classes of employees is simply that they have very different benefit plans. One class has premium discounts and advantages while the other class has barely the basics. The company is borderline discriminating by treating certain employees to better benefits without a substantial difference in the employee’s performance and skill level. They need to choose one of the packages and tweak it so that it is more equal and fair for all the employees 3. Similarly, having two classes of employees is not beneficial when the benefits are drastically different and cause serious problems. Turnover would increase, the abilities and attitudes of employees would change because of the unfair treatment they are subjected to, and the risk of legal action could all easily happen to other employers that take the same health care approach as the grocers. Like the previous question, the best thing...
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