DocuCo currently offers a relatively traditional benefits program including:
1. Health insurance: the organization contributes $250 per employee per month, which covers the cost for the employee; employees pay an additional $50 per month per covered dependent
2. Dental insurance: organization contributes $50/month, which covers the cost for the employee; employees pay an additional $10/month per covered dependent
3. Life insurance: organization contributes $20/month for $40,000 in term life insurance; employees can buy additional units of coverage as a function of annual salary
4. Vacation: everyone gets two weeks per year
5. Holidays: everyone gets ten paid holidays per year
6. Sick time: everyone gets ten sick days per year
Employees are unhappy with current benefits offerings, however, expressing their displeasure with the lack of flexibility. The company is small, with between 16 and 50 employees. Executives and senior managers at your company are very cost-conscious. Leadership has indicated that the company wants to be more competitive.
You have been asked to determine what changes you would make to the current offerings. Your task is to draft a new benefit plan for the company (a list detailing for each type of benefit, what employees will receive – it should look similar to the above but with whatever changes you feel are appropriate). Explain why any changes are being made and what is expected to happen as a result of changing that benefit (example: this will cost the company slightly more money but should increase employee satisfaction).