Our 6 participants work for a company that has recently installed a flexible benefits program. Instead of the traditional “one benefits package fits all,” the company is allocating an additional 25 percent of each employee’s annual pay to be used for discretionary benefits. Those benefits and their annual costs are listed on the next page.

Benefit Yearly Cost

1. Each group has 15 minutes to develop a flexible benefits package that consumes 25 percent (and no more!) of its character’s pay.
2. After completing step 1, each group appoints a spokesperson who describes to the entire class the benefits package the group has arrived at for its character.
3. The entire class then discusses the results. How did the needs, concerns, and problems of each participant influence the group’s decision? What do the results suggest for trying to motivate a diverse workforce?

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Plan A (No deductible and pays 90%) Plan B ($200 deductible and pays 80%) Plan C ($1000 deductible and pays 70%) Extended medical care for dependants (same deductibles and percentages as above): Plan A Plan B Plan C Supplementary dental plan Life insurance: Plan A ($25 000 coverage) Plan B ($50 000 coverage) Plan C ($100 000 coverage) Plan D ($250 000 coverage) Mental health plan Prepaid legal assistance Vacation Pension at retirement equal to approximately 50% of final annual earnings Four-day workweek during the three summer months Daycare services (after company contribution) for all of an employee's children, regardless of number Company-provided transportation to and from work University tuition reimbursement Language class tuition reimbursement $3000 $2000 $ 500 $2000 $1500 $ 500 $ 500 $ 500 $1000 $2000 $3000 $ 500 $ 300 2% of annual pay for each week, up to 6 weeks a year $1500 4% of annual pay (available only to full-time employees) $2000 $ 750 $1000 $ 500