Benefit Options –

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Benefit Options
On page 434 of Milovich, G., Newman, J., Gerhart, B. (2010). Compensation. 10th Edition. McGraw-Hill/Irwin., there is a case called World Measures. World Measurement is the world leader in product testing for safety. Lewis Jacobs, the President of the company, is convinced he must get concessions from the employees if World Measurement is to effectively compete with increasing foreign competition. He is displeased with the cost of employee benefits. While he is ready to offer a competitive wage increase (maximum of 3%), he wants the total compensation package to cost 3% less. Data is provided in the case to allow you to cost out two proposed options to cut employee benefit costs.
The case in the text contains the information about the current plan, employee survey results, and two alternative options.
1. Based on the information provided figure out the cost savings for each of the options. Please show your results (and any notes that may be helpful).
2. Which package would you recommend and why? Are you utilizing any particular strategies? When answering this question consider both the savings for the company, future ability to attract and retain employees, as well as the reaction from employees to this change.
Analyze the statement above and write a 5 to 6 page paper considering the topic. Support your conclusions with references from the textbook.Your essay should demonstrate thoughtful consideration of the ideas and concept’s that are presented in this course and provide new thoughts and insights related directly to this topic.Your response should reflect upper level undergraduate writing and current APA standards.

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