Question

---With benefit costs at about 30% of payroll, a CEO figures that benefits are costing over $10,000 per employee. He asks why he shouldn’t get rid of all employee benefits, fire his benefit manager and administrator, and with the savings give everyone a $10,000 pay increase. Why might this be a really bad idea? Does it have any merits as an idea? Is it OK to punish smoking, but what about out legal behaviors (e.g., moderate drinking outside of work, overeating)?

Answer 1

This is really a very bad idea because of following reasons :

• employee satisfaction and trust will be decreased.
• benefits are necessary to support the day to day function
• Quality of the work will be reduced
• there will be no streamlining in the processes and team

Only merit this idea is on cost to the company, that too only on short term basis.

In my opinion , punishing smoking is good, but along with smoking other evils like drinking , overeating habits should also be decreased. As all these things (smoking and others) have negative impact on health .