Case Application 12: TEAM FUN Kenny and Norton, owners of TEAM FUN!, a sporting

Question

Case Application 12: TEAM FUN Kenny and Norton, owners of TEAM FUN!, a sporting goods manufacturer and retailer, are sitting with Tony, director of human resources and Edna, compensation and benefits manager. Tony comments, "You mean to tell me that no one has actually retired from TEAM FUN!, and no one asked about the retirement plan before I got here?" Norton scowls and observes, "You have been the first to bring up a whole lot of issues. And, no. No retirees. No retirement questions. We always had the profit-sharing and that tax shelter that Leo set up for us. Everyone does what they want." Kenny says, "Your mom did, Norton, after she helped us set up that bookkeeping system when Norton says, "No, she didn't. We never paid her anything but free tickets to all the local pro Tony says, "'d like to show you how to save some money for health insurance premiums we started." games, so she didn't really retire." Offering everyone free full Blue coverage is really expensive. There are some other options. And I think you should consider some FUN! does." money-saving vacation options. I never heard of anyone doing what TEAM Kenny frowns. "As I recall, the vacation plan was what got you to take your job. company products or services with you footing the bill sounded like a dream come true." here! moms in here. And I think that soccer moms could add a lot to us. We need more family friendly Tony sheepishly grins. "Four weeks to start is incredible. And earmarking one week to try out Norton nods. That's what we thought. Anyone who wouldn't see it that way shouldn't work Edna offers, "I agree that the vacation policy is great. Howeve r, we have trouble getting working benefits to really attract them." Tony jumps in. "Exactly! If we come up with some guid elines to let employees tailor the benefits benefits dollars more effectively and have a happier package to their own circumstances, we will spend workforce." Kenny frowns. "How could they be any happier?? "We'd have a more diverse workforce," Tony replies What do you mean, diverse?" asks Norton Kenny stands up and stretches and waves Norton over to the door. "Great ideas, Tony. We'll talk more tomorrow. Come on, here. Why would you want to change that? Norton, let's roll. we've got to see the finals of that tournament we watched yesterday." Questions: 1. As Tony's intern, work up a presentation chart for three major health insurance options. Make a recommendation. 2. How does TEAM FUNI's vacation package differ from most U.S. companies? Why or why not? 3. Design a flexible benefits plan for TEAM FUN! 4. Evaluate the retirement policy in light of current human resource practices. Is it effective for this organization? 5. Is TEAM FUNI family-friendly? Explain. Should it be the same?

Explanation / Answer

Presentation chart for 3 major insurance options and recommendation:

Basically Tony wants to suggest plans other than the currently provided blue coverage to everyone. We would suggest the following 3 plans.

A top up on any of the plan selected from the above options would be a discounted medical card, which would give discounts in case the employees visit those healthcare providers. In essence it would be less expenditure for the employees in the end.

Note : Option 3 is inserted just to make either of the other options look good otherwise traditional plans are generally phasing out now.

How does Team Fun’s vacation package differ from most US companies. Should it be the same? Why?

Team Fun’s vacation package is a great benefit for all the employees. Generally either very large (and with deep pockets) organization provide such a generous benefit or very small (and niche) organization provides it.

Team Fun should continue the same as it is a great motivator to the team. Also since it has become the benchmark for the company, any reduction in the same would not be viewed positively by the employees.

Design a flexible benefits program.

In addition to the current benefits program, we can add key benefits (all subject to budgets approved) as mentioned below

https://en.wikipedia.org/wiki/Health_insurance_in_the_United_States#Types_of_medical_insurance

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