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Regal Haven Sdn. Bhd. is a furniture manufacturer with factories in the Klang Valley. The majority of the employees in the company are between the age of 20 to 35, whereas the management group are mostly above the age of 45. Faced with increasing competition and a challenging business environment, last year the company has introduced a new incentive plan. The top management hopes that this new incentive plan will make it easier to measure individual contribution to output and will increase productivity. The management also believes the incentive plan would foster an organisational culture that encourages healthy competition between fellow workers. However, earlier this year the company has experienced a rise in the number of employees leaving for its competitors. There are even rumours that the employees want to start a union. During exit interviews, two reasons stand out as being the main cause for these resignation. The first is competitors' flexible benefits program that better suit the employees' preferences. The second reason is the dissatisfaction with the new incentive plan utilised by the company. Some employees argued that the output depends on group effort, and that the production methods change to meet changing pressures. Alarmed at the loss of valuable talents, the company has approached you, a Human Resource (HR) consultant at a local firm. The company has requested that you look into the issue and come up with a benefits plan that is at par or better than your competitors, while at the same time reduces the cost of the benefits plan. a. From the above scenario, extract the characteristics that would enable Regal Haven Sdn. Bhd. to use group incentive plan. b. Analyse the implications of implementing flexible benefits program on improving employee retention and reducing cost at Redal Haven Sdn. Bhd