Discussion : “technology plus’s benefit dilemma”




Technology Pius’s Benefit Dilemma

To stay competitive, many organizations today

are choosing to restructure their benefit programs.

Technology Plus is an example of such a company.

Technology Plus has 150 employees, including upper

managen1ent, skilled tradespersons, sales representatives,

and customer service representatives. Five years

ago this company was enjoying huge profits and

could afford their current benefits progra.m; however,

times have changed and no>v they need to find cost

savings without laying off any of the staff.

Up to this point, Technology Plus has offered all

of their staff a premium benefits program, including

much more than governn1ent-required benefits

of employment insurance, Canada Pension Plan,

worker’s compensation, standard vacation of two

weeks per year, and access to legislated leaves of

absence. They offer 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 n1ore), long-term disability of 75 percent of salary

(employer paid), and a defined benefit pension plan.

They also provide a wellness program, an employee

assistance plan, and many other services such as

subsidized childcare and assistance with eldercare.

However, now they need your help in deciding how

to restructure their benefit plan to find significant

cost savings but still provide meaningful benefit coverage

for their employees.


1 What voluntary employer-sponsored benefits

should this company maintain and which

ones should they not maintain in your

opinion? Why?

2 Would a flexible benefit program save this organization

money if administered properly?

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