Mgt411 Module 2

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Christopher A. Brown MGT411 - Adv. Topics in Human Res. Mgmt. Case Study- Module 2 Lois Hammond June 8, 2013 One of the most important things that have affected employers’ costs for benefits is our declining economy. Employers are now facing the challenge of providing competitive benefits while also trying to contain costs (Wish 2012). Some organizations are making employers to seek less expensive forms of healthcare (Wish 2012). Employers are requesting that associates get 2nd opinions, shorter hospital stays, and more utilization of outpatient surgeries to cut benefit costs (Wish 2012). Employers are now requiring employees to spend more out of pocket for benefits due to the rising cost of medical costs. With the ever rising cost of prescription drugs employers are taking steps to curb the costs of medicines. Some employers require…show more content…
Disability insurance is important because it provides income for employees should they become ill or unable to work. Typical disability insurance plays up to 65 percent of an employee’s income until he or she is able to return back to work. Some employers offer long-term coverage but this is usually offered to employees in the form of an extension or add-on (Wish 2012). Employers usually offer life insurance to its employees for free or very low costs. In most common cases, the standard insurance provided for free by the employer is usually one to two times the employee’s salary in the event of their death. Additional coverage can usually be added at a low cost. These policies come in handy because they provide additional coverage for employee’s at no to very low cost. The only downfall is in most cases the coverage is not very affordable in the event you should leave the company and in some cases the coverage cannot be taken with
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