Objectives:

Please develop a (100-250+ word) indirect message responding to the following scenario: For the past several years, your organization (choose your organization on the next page) has had an extremely generous health insurance policy: the company covered everything for everything, and the program cost employees absolutely nothing.

However, the cost of health insurance has risen much faster than the firms other expenses. The cost of insuring each employee is cannot be compensated for by an increase in the prices the company can charge its customers and clients. Cost-cutting is necessary in order to preserve the health and the future of each organization as much as possible: insurance companies are raising rates and the economy continues to present a challenge in terms of your companys profits. In short, this decision is designed to help control spending, keep the company moving forward, and generally help balance employee expenses by asking them to contribute.

Almost all other businesses already ask their employees to contribute a percentage of the cost of their healthcare through payroll deductions. Management at your firm has decided that they must now do the same to offset the growing costs of healthcare, deal with current economic pressures, and hold down the companys costs. In two months time, all employees must contribute a portion of their salary if they want to continue to be covered.

The following details and numbers must be included in the message (this is the negative news):

• In order to maintain the same level of coverage as was originally offered, employees will now have to contribute to their healthcare insurance:
  • $75 dollars a month if they are single
  • $150 dollars a month if they have a family
  • Contributions are pre-taxthat means it is taken out of their pay before taxes and so they are not taxed for that expense.
  • A $35 copayment for all doctors visits
  • $1,500 per year deductible, after which all costs (aside from copays) are covered in full.
  • Employees will be able to keep their doctors but will have a greater choice of clinics, hospitals, services, and doctors, which is an improvement over the old system.

• The message should follow an indirect structure
  • The reasons for the new insurance policy should be presented before the bad news
  • The reasons for the new insurance policy should be clear and sound
  • The new insurance policy follows clearly from the reasons
  • The bad news should be tactful but clear
• The message should be clearly organized
• The message should be reasonable concise
• The message should be as free as possible of grammatical and spelling errors

Choose your Audience:

You want to direct reference these context clues as you target your reader. You can create a hypothetical name for your company and other details that fit the basic demographic outlines.

• A large, client-based enterprisesuch as an advertising/public relations agency or accounting firmin a large city; there are a lot of similar firms in the areathey are your direct competition.
  • The firm is in a crisis for several reasons: because of an economic downturn, billings and income from clients have fallen 20% in the past year. Also, a major client, whose fees made up 15% of the firms annual income, has chosen a different agency.
  • As a result, 10% percent of the staff have already been laid off; everyone else is anxious about further lay-offs.
  • Senior management wants to keep those still with the company because they are highly qualified and talented.
  • Bonuses have already been canceled, as have been cost-of-living raises.
  • Senior management is anxious to solve the following problems in order to restore income: regain lost clients, find new clients, and get more assignments from existing clients, as well as improve service to existing clients.
  • The firm must save as much money as possible to survive and eventually thrive, which is why they are now asking employees to contribute part of their income to healthcare. Alternatives could include further lay-offs or pay cuts, which management wants to avoid.
  • The employees affected by this announcement are all in management (support staff is paid differently).
  • You, the writer, are also in management, and know many of the employees; you frequently socialize informally with those in your department (who will also be affected, of course). The average pay is over $75,000 a year, but the cost of living in the city is high.

• A private, medium-sized manufacturing companya factoryin a medium-sized town, with limited competition in the area, but serious concerns about the offshore competition:
  • The company is still making a profit, but it is shrinking bit by bit every year.
  • Prices have been lowered to stay competitive, which has affected the profit margin, but the company is determined to keep everyone employed.
  • Unless the company saves more money, layoffs could be necessary eventually, if not immediately; however, you, the owner, wants to prevent this worst-case scenario. Furloughs, time-sharing could be an alternative.
  • As the owner of the company, you know all of the employees quite well and have good relationships.
  • Pay varies, depends on seniority, but averages approximately $25 an hour for senior workers, and $18 for younger, more junior workers. The cost of living raises of about 3% will continue to be given each year for the foreseeable future.

• A successful but socially conscientious service businessin the retail/hotel/restaurant fieldin a large town, with direct competition in the vicinity:
  • This business remains very successful: profits are not in jeopardy, however, stockholders and management need reassurance that business is stable and that it will continue to grow.
  • Employees affected by the new healthcare rules and charges tend to earn an hourly wage; none own stock in the company. They may also earn tips.
  • They are a mix of part-time and full-time: a diverse group of varying ages and skills.
  • You are in upper management at the head office and do not know any of the service employees, however, you want to preserve good relations with them generally, and to keep them happy in their working environment.