2. What would you tell Jennifer are the advantages and disadvantages to Carter Cleaning Centers of providing its employees with health, hospitalization, and life insurance programs? Carter Cleaning Centers has traditionally provided only legislatively required benefits for its employees. These include participation in the state s unemployment compensation program, Social Security, and workers compensation (which is provided through the same insurance carrier that insures the stores for such hazards as theft and fire). The principals of the firm Jack, Jennifer, and their families have individual, family-supplied health and life insurance.

Jennifer can see several potential problems with the company s policies regarding benefits and services. One is turnover. She wants to do a study to determine whether similar companies experiences with providing health and life insurance benefits suggest they enable these firms to reduce employee turnover and perhaps pay lower wages. Jennifer is also concerned with the fact that her company has no formal policy regarding vacations or paid days off or sick leave.