“Technology Plus’s Benefit Dilemma”

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Review the Case Incident and then answer the questions with Citations and References. No Plagiarims


Running Case: LearnlnMotion.com

The New Benefits Plan

LearnlnMotion.con1 provides only legislatively required benefits for all its employees. These include participation in employment insurance, Canada Pension Plan, and workers’ compensation. No en1ployee services are Provided. Jennifer can see several things wrong with the

con1pany’s policies regarding benefits and services.

First, she wants to determine whether similar companies’

experiences with providing health and life insurance benefits make hiring easier or reduces employee turnover. Jennifer is also concerned that the company has no policy regarding vacations or sick leave. Informally, at least, it is understood that employees get a one-week vacation after one year’s work. However, the policy regarding pay for such days as New Year’s and Thanksgiving has been inconsistent. Sometin1es new employees, on the job only two or three weeks, are paid fully for one of these holidays; sometimes employees who have been with the firm for six months or more get paid for only half a day. No one really knows what the con1pany’s chosen “paid” holidays are. Jennifer knows these policies must be more consistent.

She also wonders about the wisdom of establishing

some type of retirement plan for the firm. Although everyone working for the firm is still in their 20s, she believes a defined contribution plan in which employees contribute a portion of their pre-tax salary, to be matched up to some limit by a contribution from LearnlnMotion, contribute to the sense of commitment she and Pierre would like to create among their employees. However, Pierre isn’t so sure. His position is that if they don’t get sales up pretty soon, they’re going to burn through their cash. Now they want you, their management consultant, to help them decide what to do.


QUESTIONS

1 -Which benefit and services policy would you recommend LearnlnMotion change first and why?

2 -What changes would you recommend to Jennifer

regarding their lack of a vacation policy?

3 -As most of LearnlnMotion’s staff are in their 20s, what type of pension plan would appeal to this employee demographic? Why?

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