Question 3

Using the same scenario as the final project, the company currently offers only five days’ vacation, five
paid holidays, and legally mandated benefits such as unemployment insurance payments. What other
benefits should the company offer?  Please provide at least three benefit you would recommend and
your reason for recommending them.

Answer – Currently the benefits company is providing is very limited and does not provide future
security of employees, considering that the benefits which company can add-on are:

1) Retirement Benefits: Post-retirement every employee needs financial support for living an
independent and respectful life. Retirement benefits are the best way to deal with this kind of
situation and most of the employees can willingly accept that, to make their future secure.
2) Overtime and Minimum wage: Minimum wage avoids the situation of financial harassment of
the employee, and make them feel more secure. Whereas overtime works as an extrinsic
benefit and helps to keep them motivated, in case of increased production demand.
3) Unemployment Compensation: Considering the worst-case scenario, if an employee gets into
unemployment, then the contribution towards this benefit helps them maintain their financial
stability.
4) Stocks: Company can allow its employees to buy certain amount of stocks, on reduced price. By
doing this company can create a bonding with employees.

Question 3

Based on your recommendations, provide at least one way the company can minimize the cost of this
benefit (cost containment). Be sure to provide a rationale for your recommendation. 

Answer – For retirement and unemployment benefits, the company has to make the equal contribution
as the employee's contribution. By doing this company can make it the total compensation plan they are
offering to their employees. That way company can minimize its cost. As for Overtime, the company can
set a maximum number of hours for overtime and the number of days employees can do the overtime.
Along with that a frequent performance evaluation, can help them to keep track of employee’s
performance during normal working hours.

With the Stocks option, the company can bring in investment from the employees, which the company
can use for expansion or employee benefits schemes.

Question 3

How would you recommend communicating this to the employees at the Rockville location? 
Answer – This message can be communicated as a part of a town-hall meeting, where the company can
promote these benefits as a step towards employee satisfaction and the company’s concern for the
Family, future and financial growth of their employees. The message has to be positive and concerning
the employees only.