DocuCo currently offers a relatively traditional benefits program including: 1.

Question

DocuCo currently offers a relatively traditional benefits program including:

1. Health insurance: the organization contributes $250 per employee per month, which covers the cost for the employee; employees pay an additional $50 per month per covered dependent

2. Dental insurance: organization contributes $50/month, which covers the cost for the employee; employees pay an additional $10/month per covered dependent

3. Life insurance: organization contributes $20/month for $40,000 in term life insurance; employees can buy additional units of coverage as a function of annual salary

4. Vacation: everyone gets two weeks per year

5. Holidays: everyone gets ten paid holidays per year

6. Sick time: everyone gets ten sick days per year

Employees are unhappy with current benefits offerings, however, expressing their displeasure with the lack of flexibility. The company is small, with between 16 and 50 employees. Executives and senior managers at your company are very cost-conscious. Leadership has indicated that the company wants to be more competitive.

You have been asked to determine what changes you would make to the current offerings. Your task is to draft a new benefit plan for the company (a list detailing for each type of benefit, what employees will receive – it should look similar to the above but with whatever changes you feel are appropriate). Explain why any changes are being made and what is expected to happen as a result of changing that benefit (example: this will cost the company slightly more money but should increase employee satisfaction).

Explanation / Answer

Please find below new benefit plan which will definately increase employee satisfaction:

All the insurance schemes can be clubbed together instead of offering separate insurance plans for health, dental and life.

1. Insurance: Organization to contribute $300 per employee per month and additional 75$ extra if employees want to cover their dependents

By doing this, employees will get option to use the insurance for any type of illness. Lets someone suffer from health problems and get admitted in hospital then they can use this insurance plan which will cover employee and their depedents.

Assumption: This insurance to cover cashless hospitalization, one window solution for billing etc. are available with the insurance agency

2. A total quota of 30 leaves to be given to every employee instead of giving leaves in each header. 25 leaves should include personal leave (20) + sick leave (10)

10 days of sick leave should be subject to submission of medical certificate and 20 days of personal leave. Above these leave, employee can take more leaves which would be paid leaves. A basic salary to be deducted in case employee take additional leave.

Above proposed plan would decrease total cost of the company and also increase the satisfaction. This would definitely help in ensuring employee satisfaction, retention and efficiency in employees.

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