Reference no: EM133182490

By-the-Bay Distributors Ltd seemed to be experiencing high turnover of its employees. Specialists and supervisor turnover rate was about 25% and among hourly employees, nearing 35%.

Over the past year, By-the-Bay (BTB) had conducted several wages and salary surveys and each time the surveys revealed BTB pay levels were about 10%-12% above comparable jobs in the labor market. Management believed the benefits program, while not as impressive, was at least competitive with what other employers were offering. Employees received supplementary health and life insurance, paid vacations, and holidays.

Invariably, employees complained about the company benefit plan but the complaints varied with no one benefit or lack of benefit identifiable as the key issue. 

To make matters worse, BTB operated in a competitive labor market; jobs sometimes took weeks to fill. The process to hire specialists meant recruiting from other areas and covering moving expenses.

Requirements: Answer the questions that follow, they will be repeated in the answer block.

1. A new employee approaches HR and wants to know about the benefits offered. As the HR representative, explain to the employee the differences between legal and voluntary benefits; give appropriate examples.

2. What additions or changes do you think should be made to the company's benefits program? Why?

3. You have made some changes to the benefits offered; after one year, the HR department is tasked to conduct a benefit adit. Explain the reasoning behind conducting the benefit audit.