Task:
Your CEO has just read an article in THE WALL STREET JOURNAL that discussed how employee benefits costs are on average 40% of total payroll costs. To save money, he suggests the company fire the entire benefits staff (saving hundreds of thousands of dollars per year) and simply eliminate all non-legally required benefits. In exchange, he'd like to give all employees a base pay raise of 30-40% instead of offering benefits - they can simply purchase their own benefits if they want them.
- Provide at least one argument that could be presented to your CEO to persuade him/her that this is not a good idea.
- Provide at least one argument that supports your CEO's idea.
- Explain what anticipated impact you believe this plan would have on the organization's ability to attract, retain and motivate employees
AND
We are witnessing an unprecedented shift in employee benefits:
- a shift in responsibility
- a shift in risk
- a shift in cost
What do we mean by a shift in responsibility, risk and cost? Provide specific examples. Discuss practical examples of this shift and the impact it has on employees.