Question

Your organization currently offers health insurance, dental insurance, life insurance, a 401(k) retirement program, and paid vacation. Due to budget cuts, the company must cut one program in total. Which program would you cut, and why?

Answer 1

I would cut paid vacation, because there are annual paid leaves and holidays which I can take to relax myself instead of taking paid vacation program. But if i cut the other programs then it will be more costly for me. As medical costs are increasing at a high rate, it is not possible for a common man to afford on his own. So, I can not cut health insurance and dental insurance. Life insurance is highly important, everybody needs to insure his/her life as it would give benefit to his/her family members after the insured person's death. So it can't be deducted. The last one is retirement program, this is also necessary because after the completion of you service term you have to depend on your retirement benefits. A retirement benefit program is a saving plan offered by an employer. This plan saves as well as invests workers money and also provides tax advantage. It saves a part of our salary by investing in mutual funds and returns it back when our service term is completed. It's a good program, nobody will want to deduct it from his basket of benefit programs. So I am not going to cut it from the list of benefit programs. It can be concluded that paid vacation is not more important than medical, life insurance and retirement benefit programs.