Compensation Case

For the First Page

you need to first read Case 2 on page 261 of your textbook, Case 2: Ethics Dilemma: Go with the High Deductible Health Plan.

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1. Why do most employees prefer the HMO or PPO over a High Deductible Plan? Are there some employees that may prefer the High Deductible (if so, what characteristics define those employees)?

2. Do you think Yufei’s plan is an ethical thing to do? Why or why not? Consider both the employer’s and employee’s perspectives.

3. What other options would you recommend Yufei consider that could help lower the overall employee benefits budget despite increasing costs for the health care plans?

For the Second Page

Read Case 1 “Social Security and Retirement Planning at Taylor Foods” on pp. 260-261 in the textbook, and then answer the following three questions.

Why does the instability of the Social Security system affect retirement benefit planning at Taylor Foods?
Do you agree that Gavin should be considering the possibility of employees delaying retirement as he does the human resource planning process? How could he find out whether employees plan to delay retirement?
What specific suggestions would you give Gavin to strengthen Taylor Food’s retirement benefits? Assume they currently offer employees only a 401K retirement plan.

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