Hide Assignment Information

Turnitin$$

Turnitin$$ enabledThis assignment will be submitted to Turnitin$.$

Instructions

The Scenario:

Variety Retirement Homes provides private care for over $500$ residents in three different locations. The company employs $250$ staff members with a variety of responsibilities including RN$$s$,$ nursing assistants, kitchen staff, custodians and administrators. Variety Retirement Homes has a reputation of providing superior care and has a waiting list for residents ready to move in to their homes. Further, the company enjoys a relatively low employee turnover rate. However, some recent cuts in federal funding have created some financial difficulties for the company.

Variety Retirement Homes has cut costs in all aspects of their operations, but the company still has not accounted entirely for their expected budget shortfall and must now examine personnel costs. Due to state requirements for minimum levels of staff to residents, cutting staff is not an option. They have decided to temporarily freeze salaries, but this will still not create enough savings for the company. You, the Director of Human Resources, have been asked to examine the company benefit program for cost cutting options. The company offers a fairly generous benefits program, which is quite costly for the company. In addition to a health insurance plan, the company provides both short$-$term and long$-$term disability insurance and life insurance for which the company pays the full premium. The company provides paid time off including eight paid holidays, an average of ten vacation days and five sick days each year. As a retirement benefit, the company provides a $401($k$)$ plan where they match the first $3\%$ of the employee$$s contributions. The company also offers tuition reimbursement for employees pursing any advanced degree. To promote employee wellness, they offer a variety of programs such a monthly lunch to discuss health concerns. And finally, they offer a full$-$service Employee Assistance Program.

Changing or eliminating any of these benefits is going to be a challenge. Part of the reason Variety Retirement Homes has had such success is that they are able to retain talented and dedicated staff members. While the company$$s pay rates are in line with their competitors, their benefits program is clearly more generous. You are concerned that making cuts to the program could cause employee turnover or create challenges in future recruiting efforts. It's time for you to have a conversation with the CEO about your concerns.

The Assignment:

Considering the scenario in this case, prepare for your meeting with the CEO by creating a couple of important documents.

The first document will be an email to your CEO. In your email, you should express your concerns and detail $2$ to $3$ recommendations regarding benefits expenses, such as which benefits should be eliminated or modified, along with an explanation of why. Include any other important information you should discuss with the CEO.

The second document will be a memo to the employees. In this memo, you will explain the challenges the company is facing along with your decisions regarding elimination, reduction, or modification of benefits.