Question

Case analyses are expected to show critical thinking and be adequately supported with more than one cited reference and in-text citations to support your thoughts. One of these references may be the textbook. Each paper should include a synopsis of the issue at hand and an analysis of what should happen next for the particular situation. Each paper will be written using APA format and be at least 1-2 double-spaced pages (not including cover sheet, references, etc).

CASE

With just under 100 employees, Jackson, Smith, and Henderson CPA (JSH) is considered one of the fastest-growing certified public accounting (CPA) firms in the area. Alan Jones was recently hired as the director of human resources and has many challenges ahead of him as he works to formalize the human resource practices of the firm. As the benefit open enrollment period is approaching quickly, his first job is to review the benefit offerings of the firm to ensure that JSH is competitive with other area firms. Beyond the legally required benefits, the firm currently offers a fairly basic benefit package including health care insurance, a 401(k) plan, vacation days, and sick days. Currently, all employees are full-time, and all employees are eligible for benefits. However, two employees have recently requested part-time schedules. Further, in order to meet future unique staffing needs, the firm is considering hiring part-time workers in several departments, including CPAs. Therefore, Alan must make a recommendation to the company’s board of directors on whether they should extend the benefits to part-time workers. A recent compensation survey of businesses in the local geographic area includes information about benefits. The survey reports that about 90 percent of companies in the area offer time-off benefits to part-time employees, only 40 percent offer health care insurance, and 15 percent offer a retirement savings plan. A national survey of CPA firms showed a different picture for part-time workers: 95 percent of firms reported time-off offerings, 75 percent offered health care insurance, and 67 percent offered retirement benefits to part-time workers. The job market for talented CPAs is competitive, and Alan knows that the firm will need to hire both full-time and part-time CPAs in the future. Alan’s initial reaction is that the firm needs to offer all benefits to both full-time and part-time workers in order to be competitive with other CPA firms. However, the costs to do so are significant. The current benefits package is approximately 30 percent of the total compensation package for full-time workers. While time off benefits and 401(k) contributions for part-time workers would be pro-rated based on the number of hours each employee works, offering health care insurance is a fixed cost. That is, the firm must pay the same to cover a part-time worker as a full-time worker. As a result, benefit costs could potentially approach nearly 50 percent of the total compensation for part-time employees. Part of this cost could be offset by asking part-time workers to pay a higher percentage of the premium, but the cost would still be significant. Alan must balance recruiting needs against a tight budget, and he is concerned about the right path to take.

Questions:

15-6. What are some factors that Alan should consider when determining whether to offer benefits to part-time workers?

15-7. Do you think the firm should offer benefits to part-time workers? If yes, should it offer paid time off, the 401(k) plan, and health insurance? Or only one or two of the benefits? Explain your recommendation.

Answer 1

answer-

6-I think Alan should definitely consider to provide the benefits to part time workers because Part-time employees offer businesses many advantages over full-time employees, One of the most recognized benefits of using part-time employees is lower costs. Companies typically pay part-time employees an hourly wage and can schedule them for whatever number of hours the company desires. ( Kokemuller, Neil ,2018).

Alan should first consider which benefits are being offered to part-time employees by the competitors in the area. In order to attract and retain quality CPAs, Jackson, Smith and Henderson (JSH) will need to offer a competitive benefits package. To gather this information, Alan should consider the data that is presented in the two recently ran compensation surveys. As stated in the case study, the local compensation survey showed that 90% of the companies offered time-off benefits to their part-time employees while only about 40% offered healthcare insurance and 15% offered a retirement savings plan. A national survey of CPA firm showed that 95% of CPA firms offered time-off benefits to their part-time employees, 75% offered healthcare insurance and 67% offered retirement benefits. An additional factor that Alan should consider the overall cost of offering any or all of the benefits to part-time employees .

2- I think i would recommend two of the benefits to part time workers which are health insurance and the 401(k) plan which is pension plan. It is a retirement savings plan sponsored by an employer. It lets workers save and invest a piece of their paycheck before taxes are taken out. Taxes aren't paid until the money is withdrawn from the account. ( www.irs.gov ,2015) .

the rationale behind my recommendation is that the health insurance would help the part time workers to ensure their safety covered under this plan and according to mashlow theory of needs, safety need motivates the workers to work effectively.

From a recruiting and retention standpoint, it’s worth it to offer part-time employees and interns the option to participate in your company’s 401(k) plan. The tax benefits alone are very cost-effective, but providing this type of benefit to demonstrates your commitment to all employees, regardless of their title or classification. Given today’s retirement crisis, many people just entering the workforce—or working fewer hours—are worried about their retirement in a way that previous generations weren’t.

At the same time, it’s more likely that part-time employees and interns won’t be earning as much discretionary income that they can use to make investments in their 401(k). According to the United States Department of Labor, “interns in the for-profit private sector who qualify as employees rather than trainees typically must be paid at least the minimum wage and overtime compensation for hours worked over forty in a workweek.” While most interns are being paid for their time, the amount they can contribute to their retirement may be minimal after deducting standard living expenses.

reference- Kokemuller, Neil. "Advantages & Disadvantages of a Part-Time Employees." Small Business . 25 January 2018.

"Retirement Topics 401k and Profit Sharing Plan Contribution Limits | Internal Revenue Service". www.irs.gov. Retrieved 2018-04-15.