Running Case: LearnInMotion.com

The New Benefits Plan

LearnInMotion.com provides only legislatively required benefits for all its employees. These include participation in employment insurance, Canada Pension Plan, and workers compensation. No employee services are provided.

Jennifer can see several things wrong with the companys policies regarding benefits and services. First, she wants to determine whether similar companies experiences with providing health and life insurance benefits make hiring easier or reduces employee turnover. Jennifer is also concerned that the company has no policy regarding vacations or sick leave. Informally, at least, it is understood that employees get a one-week vacation after one years work. However, the policy regarding pay for such days as New Years and Thanksgiving has been inconsistent. Sometimes new employees, on the job only two or three weeks, are paid fully for one of these holidays; sometimes employees who have been with the firm for six months or more get paid for only half a day. No one really knows what the companys chosen paid holidays are. Jennifer knows these policies must be more consistent.

She also wonders about the wisdom of establishing some type of retirement plan for the firm. Although everyone working for the firm is still in their 20s, she believes a defined contribution plan in which employees contribute a portion of their pre-tax salary, to be matched up to some limit by a contribution from LearnInMotion.com, would contribute to the sense of commitment she and Pierre would like to create among their employees. However, Pierre isnt so sure. His position is that if they dont get sales up pretty soon, theyre going to burn through their cash. Now they want you, their management consultant, to help them decide what to do.

Questions

1. Which benefit and services policy would you recommend LearnInMotion.com change first and why?
2. What changes would you recommend to Jennifer regarding their lack of a vacation policy?
3. As most of LearnInMotion.coms staff are in their 20s, what type of pension plan would appeal to this employee demographic? Why?