Technology Plus’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 management, skilled tradespersons, sales representatives, and customer service representatives. Five years ago this company was enjoying huge profits and could afford their 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, Technology Plus has offered all of their staff a premium benefits program, including much more than government-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 more), 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.

QUESTIONS

I What voluntary employer-sponsored benefits should this company maintain and which ones should they not maintain in your opinion? Why?

II Would a flexible benefit program save this organization money if administered properly?