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Designing Benefit Plans
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Draft a basic plan for a start-up company of fewer than 100 employees.
As you prepare your benefit plan, include the following information on factors influencing the choice of benefit package
What benefits are expected at the base level and what benefits would be unique and attractive to a good worker?
What cost target is appropriate for your total benefit package? Consider the trends provided in the text.
How will your plan affect retention and motivation of the work force?
Will your plan meet legal requirements?
Will any of your benefits show an unintended preference for people of a certain age, gender, marital status, or number of dependents, including a direct and indirect impact of the benefit plan on these protected classes?
Can you administer the plan in a small employer environment?
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Solution Preview
What benefits are expected at the base level and what benefits would be unique and attractive to a good worker?
There are several benefits that are expected at the base level. These include medical insurance, dental insurance, eye care, short term disability, long term disability, unemployment insurance, workers compensation, vacation time and sick time.
Other benefits that would be unique and attractive to a good worker could include gym membership, on site conceirge service, on site day care, profit sharing, elder care, pet insurance, domestic partner insurance coverage, and on site exercise facility.
What cost target is appropriate for your total benefit package? Consider the …
