Reference no: EM133143232
Scenario: To stay competitive, many organizations today are choosing to restructure their benefit programs. Virtual Event Co is an example of such a company. Virtual Event Co has 150 employees, including upper management, skilled event specialists, sales representatives, and customer service representatives.
Five years ago, this company was enjoying huge profits and could afford its current benefits program; however, times have changed, and now they need to find cost savings without laying off any of the staff.
Up to this point, Virtual Event Co has offered all of its staff a premium benefits program, including much more than government-required benefits of Employment Insurance (EI), Canada Pension Plan (CPP), Worker's Compensation, standard vacation of two weeks per year, and access to legislated leaves of absence.
It offers group life insurance of three times salary, accidental death, and dismemberment insurance of three times salary, extended healthcare benefits (with vision care, dental care, hearing aids, and more), long-term disability of 75 percent of salary (employer paid), and a defined benefit pension plan. It also provides a wellness program, an employee assistance plan, and many other services, such as subsidized childcare and assistance with eldercare.
However, now the company needs your help in deciding how to restructure its benefit plan to find significant cost savings but still provide meaningful benefit coverage for its employees.
Questions:
- In your opinion, what voluntary employer-sponsored benefits should this company maintain, and which ones should they not maintain? Why?
- Would a flexible benefit program save this organization money if administered properly, explain your answer?