Share
Explore BrainMass

reducing benefit costs

As VP of HR, you are also responsible for benefits management. The cost of health care is spiraling upward at the same time there is pressure on the cost of raw materials for production. Management's objective is to contain employee health care benefit costs at a minimum and reduce those costs if at all possible. A union's objective is to keep any reduction in benefits at a minimum and to increase benefits if at all possible. Management often considers using temporary help or contracting out some of the work in order to avoid having to deliver benefits to additional workers. The union focuses on increasing its membership base and is firmly against the use of outsourcing or the hiring of employees who are not benefit eligible. This challenge could be another consequence of the union representation request.

You bring this challenge to your local Society of Human Resource Managers (SHRM) chapter meeting. The members agree to help you work on this challenge.

Part 1: Small Group Discussion (Taking the side)

Within your small group, take the side of either the management or the union. Using the Small Group Discussion Board, discuss the state of health care benefits at your company as well as what you think would be the proper solutions to this issue.

Here I would like to use my own company as well as taking the side of management

Solution Preview

Part 1: Small Group Discussion (Taking the side)

Within your small group, take the side of either the management or the union. Using the Small Group Discussion Board, discuss the state of health care benefits at your company as well as what you think would be the proper solutions to this issue.

Management is definitely correct in outsourcing a part of its operations to contractual workers or third party companies because if it does not resort to such practices, the firm will find it difficult to survive and thus, it might be possible that leave alone healthcare benefits, even the job of the workers will not be secured. Therefore, management ...

Solution Summary

HR: discuss reducing benefit costs (health insurance) from the management side

$2.19