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Discussion : “Technology Plus’s Benefit Dilemma”

Discussion : “Technology Plus’s Benefit Dilemma”

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Author: robert tatham
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FOR DISCUSSION QUESTION : ANSWER THE QUESTION FOR THIS CASE INCIDENT WITH CITATION AND REFERENCE.
 
Case INCIDENT
Technology Pius's Benefit Dilemma
To stay competitive, many organizations today
are choosing to restructure their benefit programs.
Technology Plus is an example of such a company.
Technology Plus has 150 employees, including upper
managen1ent, skilled tradespersons, sales representatives,
and customer service representatives. Five years
ago this company was enjoying huge profits and
could afford their current benefits progra.m; however,
times have changed and no\>v they need to find cost
savings without laying off any of the staff.
Up to this point, Technology Plus has offered all
of their staff a premium benefits program, including
much more than governn1ent-required benefits
of employment insurance, Canada Pension Plan,
worker's compensation, standard vacation of two
weeks per year, and access to legislated leaves of
absence. They offer group life insurance of three
times salary, accidental death and dismemberment
insurance of three times salary, extended healthcare
benefits (with vision care, dental care, hearing aids,
and n1ore), long-term disability of 75 percent of salary
(employer paid), and a defined benefit pension plan.
They also provide a wellness program, an employee
assistance plan, and many other services such as
subsidized childcare and assistance with eldercare.
However, now they need your help in deciding how
to restructure their benefit plan to find significant
cost savings but still provide meaningful benefit coverage
for their employees.
QUESTIONS
1 What voluntary employer-sponsored benefits
should this company maintain and which
ones should they not maintain in your
opinion? Why?
2 Would a flexible benefit program save this organization
money if administered properly?


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