Reference no: EM133139713

To design an effective benefits package, a company needs to align its benefits strategy with its overall compensation strategy. The benefits strategy requires making choices in three areas: 1) benefits mix, 2) benefits amount, and 3) flexibility of benefits. Because of escalating healthcare costs and the rising cost of coverage, many employers are attempting to re-structure their benefits strategy to save money.

Assume that you are an HR manager at your current organization (if unemployed use the University or your most recent employer as context; this will require that you do some research on the benefits package offered to employees). The organization needs to make significant benefit cuts for budgetary purposes (an approximate 25% reduction in costs).

a) How might you adjust the benefits mix, amount, and/or flexibility of the plan to gain maximum financial savings yet still provide for your employee's needs? In one column/list, provide an overview of the benefits package that your organization currently offers and in a second column/list provide your recommendations for adjustment. Be practical and offer a reasonable re-structuring that you feel would be most beneficial for the employer and employees (ballpark what you believe to be an approximate 25% reduction).

b) How might you create an environment where employees felt they had a voice in the decision making process? What are the pro's and con's of such an interactive approach?