Reference no: EM132749047

Nicolas was very pleased with his promotion to restaurant manager in a fast-paced, high quality chain restaurant in Alberta. At his first staff meeting, he was happy to hear that many of the employees were quite satisfied with their hourly wages at just above minimum wage, as they were able to earn significant tips each shift. After the meeting, he was surprised to overhear, that staff wished they had benefits as part of their compensation. Indeed, he heard several staff members saying that they had "no benefits". In addition to the regular paid vacation time and overtime provisions, Nicolas thought about the free meal with each shift that each employee was entitled to, extra rest breaks and wash up time paid to staff at the end of their shifts, and other perks provided to employees. As Nicolas thought about the busy restaurant environment, he wondered what he could do to increase communication about benefits and services, and possibly increase staff satisfaction with what they did receive. He also thought about how he could approach the owner of the restaurant chain to consider adding new benefits and services for staff.

Problem 1: If Nicolas were able to convince the restaurant chain to provide some additional benefits to employees, one way of placing a maximum known cost on the employer commitment is to offer:

A) a defined benefits plan.
B) a flexible benefits program.
C) unlimited educational assistance.
D) 80% coverage on prescription medication costs.
E) short term disability plan.