What would you tell Jennifer are the advantages and disadvantages to Carter Cleaning Centres of providing its employees with dental, medical, and life insurance programs? Carter Cleaning Centres has traditionally provided only legislatively required benefits for its employees. These include unemployment insurance, the Canada Pension Plan, and workers compensation. The principals of the firmJack, Jennifer, and their familieshave private extended care, health benefits, and life insurance.

Jennifer can see several potential problems with the companys policies regarding benefits and services.

One is turnover. She wants to study whether similar companies experiences with providing health and life insurance benefits enable these firms to reduce employee turnover and perhaps pay lower wages.

Jennifer is also concerned that her company has no formal vacation or paid days off or sick leave policies.

Informally, at least, it is understood that employees get one week of paid vacation after one year of service, but in the past the policy regarding paid vacations for days such as New Years Day, Family Day, and Thanksgiving Day has been very inconsistent.