You are the benefits manager at a medium-sized corporation and the president of

Question

You are the benefits manager at a medium-sized corporation and the president of the company has requested your advice. She overheard an employee saying that the employer spends too much money on benefits that aren’t really needed and that giving employees the money spent on benefits directly as cash wages would be better so they could buy what they want. The president thinks that this idea may have some merit. Discuss the following issues with her:                                                                                       

1)economic consequences to the employees( be specific)

2)economic consequences to the employer( be specific)

3)reasons to continue providing benefits to employees( be specific)

4)your concerns with the current benefit plan, after hearing the employee’s comment( be specific)

5)your recommendation(s) as to how to proceed from here( be specific)

thanks

Explanation / Answer

Answer: As per te above case study following are the answers.

1. As per the president suggestion to pay cash wages place of benefit employees economic status will be more. Employee will get more cash wages and economic consequense will be good. thay will get more cash wages.

2. It will affect company's balance sheet. if companty will pay more in form of cah wages then it will affect liquid assets.

3. Reason to continue providing benefits :More benefits motivate to the employee. Employee can balance personal and professional life.More benefits will reduce the attretion rate.

5. My recommendation is need to continue with Benefits not cash wages.

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