Human Resources Staffing

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CHAPTER 12 Essay Questions 1. Early in this chapter we identified five reasons for the growth, historically, in the size of benefits packages. Which of these reasons still affect the growth of employee benefits today? Which actually might be current reasons for declines in the size of benefit packages? Among the reasons identified as being responsible for the growth in the size of benefit packages, unions, cost effectiveness of benefits, and government impetus can still affect the growth of employee benefits today. Although the employer impetus was a driving force in earlier times for the growth of benefits, it could now prove to be a bane, with the companies realizing that a lack of hard data about payoffs has forced benefits to become a costly affair. Also, with governmental legislations changing almost rapidly, there could always be a scanner introduced to tax ‘fringe benefits’. 2. Erinn Kelly, VP of Human Resources at Lawson Chemical, just purchased a local salary survey that has employee benefits data. She was shocked to see that Lawson has a larger benefits bill (38 percent of payroll) than the average in the community (31 percent). In a memo to you, she demands an explanation for why our package is significantly bigger. What sound reasons might save you from getting fired? Employees expect benefits and a competitive benefit package can help an organization attract and retain good employees. Also, some benefits are legally required and must be provided. Finally, a 38 percent of the payroll could be an advantage as they have tax benefits and reduced rate group costs that appeal to employees. Since Lawson Chemical’s competitors offer benefits, it must be concerned with being competitive and equitable. The company should address two questions. “How can it maximize its’ return for its benefits’ dollars? What does the market pay as a percent
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