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Question?As HR director at Crangle Fixtures, your bonus this year is based on your ability to cut employee benefit costs


Question?As HR director at Crangle Fixtures, your bonus this year is based on your ability to cut employee benefit costs. Your boss has said that it's okay to shift some of the costs over the to employees (right now that pay nothing for their benefits) but that he doesn't want you to overdo it. In other words, at least one-half of your suggestions should not hurt the employee's pocket book. What alternatives do you want to explore, and why? Answer 1 As the human resources director of Crangle Fixtures, I need to balance the relationship between cost transfer and employee benefits. According to the textbook, employee benefits refer to a part of the compensation package that the employer pays to employees, not the salary paid according to working hours (Gerhart?Newman, 2020, P.449). Therefore, Crangle Fixtures needs to avoid adverse effects on employees and reduce the cost of employee benefits. From my perspective, Crangle Fixtures has the following options. First, according to the cost-centered approach, employers can work with insurance companies to determine the cost commitments of the existing benefits program based on the announced specific benefits and cost forecasts. On this basis, employers can provide employees with benefits within the budget, and can invest the remaining budget in other organizational benefits programs. Secondly, Crangle Fixtures can provide employees with benefits on the basis of cost-sharing. According to Miller from SHRM, as the cost of employee benefits increases, about 60 percent of companies have switched to higher deductible insurance plans. Finally, Crangle Fixtures can choose to outsource human resources functions to reduce its transaction and management costs. Best, Reference Miller, S. (2011). Employee Benefits Costs Force Difficult Trade-Offs. SHRM. (Links to an external site.) Gerhart, B.,& Newman, J. (2020). Compensation. New York: McGraw-Hill Education. Answer 2 As a director at Crangle Fixtures , It was agreed that the incentive would be determined by the incentives that would be added for the workers' benefit. However, it was determined that the company could not bear any of the costs, and that half of them should be paid by the workers. Employers should look at the following ways to save money without putting their workforce at risk. Employers have the option of denying compensation to prospective hires if they are on probation. Employers may restrict their workers' medical benefits to a certain level. Employees will offset a portion of insurance rate costs as a copay, reducing the cost of premium payments. Employers should also outsource their simple routine tasks, such as Human Resource functions, to third parties, allowing them to focus on their core competencies. Employers may also attempt to persuade workers to forego any or more of the company contribution, or to reduce it to a certain amount. In situations where both partners serve, employers can save money by spreading coverage insurance claims. Cost saving is a simple mechanism that can be helpful if employers pay attention to payroll salaries and do not entirely load the workforce or carry on the burden themselves. As Hr director this would recommend the above-mentioned alternatives to its company; this would transfer half of the responsibility to its workforce, which would be favorable to both workers and employers. Reference

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