NOTE: PLEASE ANSWER THESE QUESTION ASAP. Please read the case and answer questions 13-16. Electrico is a recently corporatized electrical utility in NSW. Staff turnover is very low due to the location of the organization and it is likely to remain low due to the lack of other organizations in the area providing suitable employment. The average age of the staff is 48 years, most having been with the organization since leaving school. Due to the restructure, a number of positions have been abolished and more responsibility has been placed on all workers within the facility and its out-depots. This has led to a reduction in morale within the workforce. As part of the human resource strategy to raise morale, the HR department has implemented a salary packaging policy. The decision was made to offer to all staff the opportunity to package the following benefits as part of the arrangement: The employees contribution to superannuation Private school fees Child minding fees Page 2 of 2 Self-education expenses Computer equipment Mobile telephone To salaried office staff only, the additional option was given to salary package a vehicle. After the scheme had been in operation for six months, it was found that only three employees had taken advantage of the scheme. After re-publishing the scheme, only another two employees took advantage of it. The HR department decided to investigate the reasons for the reluctance of employees to participate. Questions 13. Why were employees of Electrico reluctant to take advantage of the salary packaging arrangement? 14. Is there an equity issue at stake? 15. What should the HR department have done to make the scheme more acceptable to employees? 16. If you were the in-charge of the whole situation, outline your response to this situation?