I think I sent everything about this exercise knowing that you have it on your website (so, I think now you have enough details to solve it since the answers you provided before were not helpful at all).

Well, this question has not been properly answered.

I paid to get an answer but I was actually really disappointed by the answers provided.

I hope that it is going to be appropriately answered this time because I paid for it and I do not want to regret it. Thank you!

Here is the question:

Employees Benefits (Lightning Industries) case study. page 204. (Exactly the same pages provided in the case on your website)

1-Cost out the 2 packages given the data provided in exhibits 9.9,10,11,12.

2-Correct calc of Option 1 savings

3-Correct calc of Option 2 savings

4-Correct calc of Total benefit cost per employee under both options

What alternative would you present to Jacobs and why?

Which strategies will require less employee input in terms of their reactions?

204 PART II EXTERNAL COMPET TERNAL COMPETITIVENESS. DETERMINING THE PAY LEVEL 3. Describe how a flexib costs are being reduced. 4. Explain how an employee assista HOW a flexible benefit plan miant increase worker satisfaction with bence. nefits at the other benefits won employee assistance plan could reduce costs for several other Canada Pension Experiential Exercises Employment Insuran Workers' Compon read in the Glob Loyees a 38 De g o. t a good idea? 1. Your CEO is living proof that a little bit of knowie were is a dangerous thing. He just read Mall that employee benefits cost on average. 30 P 38 percent of payroll. To save money. company fire its two benefits administrators, two benefits administrators, do away with all benefits, and give emi bersuade the CEO that this is not a gon pay raise. What arguments could you provide to pers 2. Your company has a serious turnover P mpany has a serious oblem among employees with fewer than five CEO wants to use employee benefits to to use employee benefite to lessen this problem. What might you do, specin of pension vesting, vacation and holiday alloca ang, vacation and holiday allocation, and life insurance coverage, in an turnover? carsi seniority cally in the be effort to redu pension, group in Pension plan contre b. Group insurance c. Short-term disabi d. Long-term disabi e Discounts onge by employees Miscellaneou moving expe Politically foolhardy and decide to challenge your CEO's decision in se benefits as a malor tool for reducing turnover. Before she fires you 3. Assume you are politically foolhardy a question to use benefits as a major tool for reducir there other compensation tools that m might you use to try to persuade her? (Hint: Are there o effective in reducing turnover? Might the chans long-service employees?) in the previous what argument at might be more ces for older mg turnover? Might the changes in benefits have unintended consequence Case Lightning Industries Lightning Industries manufactures lamps for residential homes. The pre The president of the company, Laura Jaco convinced that she must get concessions from the workers if Lightning is foreign competition. In particular, Jacobs is displeased with the cost o Sions from the workers if Lightning is to compete effectively with in ular, Jacobs is displeased with the cost of employee benefits. She doesn't conceding a competitive wage increase (maximum 3 percent), but she to cost 3 percent less. The current costs are shown in Exhibit 9.9. ase (maximum 3 percent), but she wants the total compensation pack 3. Payments for a. Paid vacati b. Paid statu c Paid clothes.ch d. Payme berea 4. Other it a. Cont b. Tui a Jacobs.is with increasing e doesn't mind on package EXHIBIT 9.9 Current Compensa Current Compensation Costs CE Average yearly wage Average hourly wage $36,769 Dollar value of yearly benefits, per employee $17.68 Tot Total compensation (wages plus benefits) $12,923 Daily average number of hours paid $49,769 Your a data fr Based Benefits -Opti 1. Legally required benefits Average Employer Cost/ Employee/Year $ 3,549 205 CHAPTER 9 EMPLOYEE BENEFITS canada Pension Plan a Canada es $ 1,647 Employment Insurance $ 968 b. Employment c. Workers' orkers' Compensation $ 934 on, group insurance, disability 2. Pension, gro $ 3,446 sion plan contributions a. Pension p $ 2,460 insurance life, health, dental) b. Group insuran $ 523 Short-term disability d. Long-term disability nts on goods and services purchased from company e. Discounts on by employees Miscellaneous payments (ter f. Miscellan is termination pay allowances, moving expenses, etc.) $ 124 ments for time not worked 3. Payments for baid vacations (16 days average) a. Paid vacatio paid statutory holidays (9 days) b. Paids $ 3,324 $ 1,558 $ 973 $ 727 c. Paid baid rest periods, lunch periods. wash-up es-change time, get-ready time, etc. (60 minutes) clothes-change time time, d Payments for jury/witness cut ents for jury witness duty, voting time, leave for avement, or other personal reasons bereavement $ 66 4. Other items $ 2,681 contributions to employee savings plan a. Contributi $ 1,064 h Tuition reimbursement plan (50%) $ 804 C. EAP $ 687 d Special wage payments ordered by courts. payments to union stewards, etc. $ 126 Total $13,000 Your assistant has data from a consulting Based on all this infor csistant has surveyed other companies that are obtaining concess from a consulting firm that indicates employee preferences for an d on all this information, you have two possible concession packa Option 1" and "Option 2" (Exhibit 9.11). hat are obtaining concessions from employees. You also have oyee preferences for different forms of benefits (Exhibit 9.10). possible concession packages that you can propose, labelled 206 PART II EXTERNAL O KI EXTERNAL COMPETITIVENESS. DETERMINI ETERMINING THE PAY LEVEL EXHIBIT 9.10 Benefit Preferences IMPORTANCE TO KOHORES BENEFIT TYPE OR METHOD OF ADMINI Pensions OF ADMINISTERING Healthcare plan Holidays Paid vacation Life insurance Long-term disability Short-term disability Paid rest periods, lunch breaks, etc. Dental plan Profit sharing Contributions to savings plan Discount on goods Fair treatment in administration Note: 0-unimportant: 100 = extremely important BIT 9.11 / Two Possible Packages for Cutting Benefit Costs Option 1 Implement deductible ($50 annually) for Healthcare plan Dental plan Reduction of benefit: Eliminate 10 minute paid break vout from pension Coordination with legally required benefit: Integrate CPP with Lightning Industries pension plan (subtract CPP payout from benefit) Option 2 Improved claims processing for Short-term disability Long-term disability Require probationary period (one year) before eligible for Discounts on goods Contributions to employee savings plan Coinsurance (80%): Healthcare plan 2017 CHAPTER O EMPLOYEE BENEFITS Questions 1 Cost out the ous insurance carriers and which package should you te these packages given the data in Exhibits 99 and 9.10 and Insurance comes and other information sources (Exhibit 9.14). should you recommend to Jacobs? Why? of the strategies do you think will require less Input from employee 2. Which and the information obtained from 3. Which of the nployees in terms of their reactions? EXHIBIT 9.12 Analysis of Cost Implications for Different co Lightning Industries fferent Cost-Cutting Strategies: COST-SAVING STRATEGY Deductible ($50 annually: SAVINGS AS % OF BENEFIT COST Healthcare plan Dental plan e probationary period before eligible Require probationary (one year): Discount on goods and Services Contributions to employee savings plan Improved claims processing: Short-term disability . Long-term disability Coordination with legally required benefits: Integrate CPP with Lightning Industries pension plan 204 PART II EXTERNAL COMPET TERNAL COMPETITIVENESS. DETERMINING THE PAY LEVEL 3. Describe how a flexib costs are being reduced. 4. Explain how an employee assista HOW a flexible benefit plan miant increase worker satisfaction with bence. nefits at the other benefits won employee assistance plan could reduce costs for several other Canada Pension Experiential Exercises Employment Insuran Workers' Compon read in the Glob Loyees a 38 De g o. t a good idea? 1. Your CEO is living proof that a little bit of knowie were is a dangerous thing. He just read Mall that employee benefits cost on average. 30 P 38 percent of payroll. To save money. company fire its two benefits administrators, two benefits administrators, do away with all benefits, and give emi bersuade the CEO that this is not a gon pay raise. What arguments could you provide to pers 2. Your company has a serious turnover P mpany has a serious oblem among employees with fewer than five CEO wants to use employee benefits to to use employee benefite to lessen this problem. What might you do, specin of pension vesting, vacation and holiday alloca ang, vacation and holiday allocation, and life insurance coverage, in an turnover? carsi seniority cally in the be effort to redu pension, group in Pension plan contre b. Group insurance c. Short-term disabi d. Long-term disabi e Discounts onge by employees Miscellaneou moving expe Politically foolhardy and decide to challenge your CEO's decision in se benefits as a malor tool for reducing turnover. Before she fires you 3. Assume you are politically foolhardy a question to use benefits as a major tool for reducir there other compensation tools that m might you use to try to persuade her? (Hint: Are there o effective in reducing turnover? Might the chans long-service employees?) in the previous what argument at might be more ces for older mg turnover? Might the changes in benefits have unintended consequence Case Lightning Industries Lightning Industries manufactures lamps for residential homes. The pre The president of the company, Laura Jaco convinced that she must get concessions from the workers if Lightning is foreign competition. In particular, Jacobs is displeased with the cost o Sions from the workers if Lightning is to compete effectively with in ular, Jacobs is displeased with the cost of employee benefits. She doesn't conceding a competitive wage increase (maximum 3 percent), but she to cost 3 percent less. The current costs are shown in Exhibit 9.9. ase (maximum 3 percent), but she wants the total compensation pack 3. Payments for a. Paid vacati b. Paid statu c Paid clothes.ch d. Payme berea 4. Other it a. Cont b. Tui a Jacobs.is with increasing e doesn't mind on package EXHIBIT 9.9 Current Compensa Current Compensation Costs CE Average yearly wage Average hourly wage $36,769 Dollar value of yearly benefits, per employee $17.68 Tot Total compensation (wages plus benefits) $12,923 Daily average number of hours paid $49,769 Your a data fr Based Benefits -Opti 1. Legally required benefits Average Employer Cost/ Employee/Year $ 3,549 205 CHAPTER 9 EMPLOYEE BENEFITS canada Pension Plan a Canada es $ 1,647 Employment Insurance $ 968 b. Employment c. Workers' orkers' Compensation $ 934 on, group insurance, disability 2. Pension, gro $ 3,446 sion plan contributions a. Pension p $ 2,460 insurance life, health, dental) b. Group insuran $ 523 Short-term disability d. Long-term disability nts on goods and services purchased from company e. Discounts on by employees Miscellaneous payments (ter f. Miscellan is termination pay allowances, moving expenses, etc.) $ 124 ments for time not worked 3. Payments for baid vacations (16 days average) a. Paid vacatio paid statutory holidays (9 days) b. Paids $ 3,324 $ 1,558 $ 973 $ 727 c. Paid baid rest periods, lunch periods. wash-up es-change time, get-ready time, etc. (60 minutes) clothes-change time time, d Payments for jury/witness cut ents for jury witness duty, voting time, leave for avement, or other personal reasons bereavement $ 66 4. Other items $ 2,681 contributions to employee savings plan a. Contributi $ 1,064 h Tuition reimbursement plan (50%) $ 804 C. EAP $ 687 d Special wage payments ordered by courts. payments to union stewards, etc. $ 126 Total $13,000 Your assistant has data from a consulting Based on all this infor csistant has surveyed other companies that are obtaining concess from a consulting firm that indicates employee preferences for an d on all this information, you have two possible concession packa Option 1" and "Option 2" (Exhibit 9.11). hat are obtaining concessions from employees. You also have oyee preferences for different forms of benefits (Exhibit 9.10). possible concession packages that you can propose, labelled 206 PART II EXTERNAL O KI EXTERNAL COMPETITIVENESS. DETERMINI ETERMINING THE PAY LEVEL EXHIBIT 9.10 Benefit Preferences IMPORTANCE TO KOHORES BENEFIT TYPE OR METHOD OF ADMINI Pensions OF ADMINISTERING Healthcare plan Holidays Paid vacation Life insurance Long-term disability Short-term disability Paid rest periods, lunch breaks, etc. Dental plan Profit sharing Contributions to savings plan Discount on goods Fair treatment in administration Note: 0-unimportant: 100 = extremely important BIT 9.11 / Two Possible Packages for Cutting Benefit Costs Option 1 Implement deductible ($50 annually) for Healthcare plan Dental plan Reduction of benefit: Eliminate 10 minute paid break vout from pension Coordination with legally required benefit: Integrate CPP with Lightning Industries pension plan (subtract CPP payout from benefit) Option 2 Improved claims processing for Short-term disability Long-term disability Require probationary period (one year) before eligible for Discounts on goods Contributions to employee savings plan Coinsurance (80%): Healthcare plan 2017 CHAPTER O EMPLOYEE BENEFITS Questions 1 Cost out the ous insurance carriers and which package should you te these packages given the data in Exhibits 99 and 9.10 and Insurance comes and other information sources (Exhibit 9.14). should you recommend to Jacobs? Why? of the strategies do you think will require less Input from employee 2. Which and the information obtained from 3. Which of the nployees in terms of their reactions? EXHIBIT 9.12 Analysis of Cost Implications for Different co Lightning Industries fferent Cost-Cutting Strategies: COST-SAVING STRATEGY Deductible ($50 annually: SAVINGS AS % OF BENEFIT COST Healthcare plan Dental plan e probationary period before eligible Require probationary (one year): Discount on goods and Services Contributions to employee savings plan Improved claims processing: Short-term disability . Long-term disability Coordination with legally required benefits: Integrate CPP with Lightning Industries pension plan