You are the Vice President of Compensation & Benefits for Wolfman Enterprises, a

Question

You are the Vice President of Compensation & Benefits for Wolfman Enterprises, a large, high-technology products manufacturer that employs approximately 65,000 in the United States. You have just learned that health insurance premiums for the following fiscal year were expected to increase approximately 26%, up dramatically from the 16% increase of the previous year and the 14% increase the year before that. Adding to your concern is the projection that, by 2015, the company’s $375 million annual health-care bill would increase to a staggering $613 million. You have been asked by Wolfman’s top management to develop a custom-designed health insurance program for the organization that would hold down health-care premium costs to a reasonable level while ensuring that employees would retain adequate health care coverage. The current health care plan is relatively traditional. The company pays the entire health care premium for single employees (approximately $480 per month); dependent coverage is available, but the employee pays the entire cost of this coverage. There is a $250 deductible, and no preferred provider network. Once the employee’s deductible is met, the policy pays 80% of all covered expenses up to $5,000. Once the $5,000 threshold is met, the policy then pays 100% of covered expenses up to a lifetime maximum of $2,000,000 per person. Thus, each employee has an annual out-of-pocket maximum of $1,250. Preventive care (an annual physical, routine Pap smears and annual mammograms for women, and PSA for men) are covered at 100% with no deductible. Employees also have a prescription drug benefit. After payment of a $100 annual deductible (per person), generic prescription drugs are available with a $10 copay; brand-name prescription drugs are available with a $25 copay. Top management has asked you to provide them with a preliminary list of ideas to be considered, and how you believe employees would accept these changes, because the company is concerned about employee retention and does not want to lose valued employees.

Explanation / Answer

It is very important to retain the top performer employees in the company. They add success and help in achieving goal and obective of the company.

The problem seen in this case is the compny paying high amount of insurance for their employee. The solution is very simple - Firstly categorize the employee base on experience and salary. The employees with most expeirnce will be given high insurance claim On the hand, employe being in company for a year will have low cliaim.

Following are ythe ways to retain employees.

1. Training - Training is given by employers to employee and encourages them to follow the rules and regulation. The employers motivate employees to focus on goal of the organization by ethical practice. The leaders should discuss the ethical behavior and its importance in the organization

2. Employees Appreciation - Employers needs to appreciate employee for their hard work so that they become royal to the company.

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