One of the major issues in benefits these days is how to contain the costs of benefits. Address one or more of the following questions as you consider the costs of benefits:
Which of the options for controlling health care costs seems most likely to reduce the firm’s costs while not demoralizing its employees?
With benefit costs at about 30% of payroll, a CEO figures that benefits are costing over $10,000 per employee. He asks why he shouldn’t get rid of all employee benefits, fire his benefit manager and administrator, and with the savings give everyone a $10,000 pay increase. Why might this be a really bad idea? Does it have any merits as an idea?
Should employers take a tough stand (e.g., charging higher premiums, even firing) against employees who are engaging in legal but unhealthy behaviors?