Question

As an employer, you can impact the lives of employees. Beyond tangible rewards such as pay, and intangibles such as mentoring, providing a generous employee benefits package is something to consider. In order to offer generous benefits, you must first practice careful financial planning. Most benefits packages do not come cheap and costs can rise exponentially; especially with the rising cost of health care.

You have recently become the Total Compensation Manager at XYZ, Inc. You are responsible for building the benefits packages for the full-time, part-time and contingent workforce. *Make sure to identify how the benefits packages differ, if at all.

Identify which type of health care provider(s) you would choose and why?

• Health Maintenance Organizations
• Preferred Provider Organizations
• Point-of-Service Plans
• High-Deductible Health Plans

Which funding source will the organization choose and why?

• Full-Insurance
• Self-Insurance

Will the organization offer voluntary benefits?

• Dental Insurance
• Life Insurance
• Vision, etc.

And how will those be funded?

• Fully Funded Employer Plans: A company covers 100 percent of its employees' costs.
• Partially Funded Employer Plans: A company pays a share of its employees' costs, usually in the ballpark of 80 percent. Employees cover the remainder.
• Fully Funded Employee Plans: Employees pay the entire cost of their dental benefits, while the company absorbs only the costs of administrative costs and payroll deductions.

What other types of benefits will you offer? Why?

• Flexible Spending Accounts
• Retirement Savings Plan
  • Defined Contribution
  • Defined Benefit
• Paid Time Off

Answer 1

Answer:

Health Maintenance Organization type of health care provider we would choose because this will be more helpful in extending the insurance for the healthcare for the employee and it will provide larger coverage for employees on annual nominal fees. This we will select as it is common trend in the market. This is more preferred and it will not have much impact on the cost to the business.

The funding source will the organization choose is full insurance because full insurance will be able to provide better benefits for the employees and it will have better coverage for the employees. This funding source will help in getting better motivation for the employees and it will create better competitive advantage in the market.

Yes, the organization will offer voluntary benefits like Dental, Life Insurance and Vision insurance. This will help in increase the benefits for the employee and improve the competitive advantage in the market.

The funding source will be Partially Funded Employer Plans: A company pays a share of its employees' costs, usually in the ballpark of 80 percent. Employees cover the remainder. These will be funded at low discounted rates from the employees. The employees will be willing to take these benefits at low discounted rates for their family with support from the company.

The other types of benefits that we will offer are as below

• Retirement Savings Plan
  • Defined Contribution
  • Defined Benefit

This will be helpful for the employee and this benefit will help them in their retirement life. This will be the key motivation for the employee and they will willing to have this plan.