1. Cost out these packages given the data in Exhibits 1 and the information obtained from various insurance carriers and other information sources (Exhibit 4).
Exhibit 1: Current compensation costs
Average yearly wage...............$26,769
Average hourly wage............... $13.12
Dollar value of yearly benefits, per employee....... $8,923
Total compensation (wages plus benefits) .........$35,692
Daily average number of hours paid......... 8.0
Benefits (by category) ...............Dollar cost/Employee/year
2. Which package should you recommend to Jacobs? Why?
3. Which of the strategies do you think will require less input from employees in terms of their reactions?