Hospital CEO Richard Weber was facing a difficult decision regarding employee benefits for the 1,200 doctors, nurses, and administrative staff working in his large healthcare center. The costs of employee benefits had continued to grow and now accounted for a large percentage of the total compensation package at the hospital. Weber tried to review his options. Benefits were often used to attract potential employees to the hospital. In addition, Weber believed that the tax treatment of benefits was more valuable to employees than if he were to offer higher salaries, and he knew the hospital insurance rates were much lower than those the employees would be able to find on their own. Finally, state and federal laws required many of the benefits. He worried that if he changed the benefits package, he would have dissatisfied workers and increase the risk of losing talented employees. Weber knew that he could potentially reduce specialized programs such as the 16 paid hours per month he provided employees to do volunteer work, but he felt that those programs were valuable and enriched outreach to the surrounding community. The cost of benefits just kept growing, and Weber was stymied as to how to keep employee benefit costs at a manageable level. 1c. Because the hospital employs primarily a younger, female workforce, offers...
Because the hospital employs primarily a younger, female workforce, offers a safe work environment, and has a very low turnover, the largest financial challenge for Weber among the legally required benefits is most likely:
Multiple
Choice Social Security costs.
domestic partner benefits.
family and medical leave costs.
unemployment insurance benefits.
worker's compensation expenses.