Question

You are the HR manager for Crangle Fixtures, and your bonus for this year is based on your ability to reduce employee benefit costs. The president of the company has said that it would be appropriate to shift some of the costs to employees (currently, they pay none). The recommendations for shifting costs to employees cannot exceed 50% of the recommendations to reduce employee benefit costs. For the purpose of the assignment, Crangle Fixtures employs 100 employees and is a non-union organization. Your recommendations must be supported by three references, one of the references must be a refereed journal article.

Answer 1

Below is how the employee benefit costs can be reduced -

1. By passing a part of the premiums for health insurance to employees while offering the other part of the insurance as benefit.

2. By deducting the amount for food coupons from employees salaries rather than giving them as additional benefits to salaries.

3. Reducing voluntary benefits.

4. Linking benefits to the performance of the employees as well as overall performance of the firm.

5. Offering benefits that the employee could avail in long-term usually as certain percentage every year which increases retention rate while reducing benefit costs for the year.

References

When You’ve Got to Cut Costs—Now By Kevin Coyne, Shawn T. Coyne, Edward J. Coyne, Sr.

https://www.comparebusinessproducts.com/briefs/5-ways-reduce-employe-benefits-costs

https://www.procuredesk.com/10-ways-smbs-reduce-employee-benefits-cost/