You are the new Vice President of Total Rewards at Pantherbot, a large up-and-coming advertising agency that
Question:
You are the new Vice President of Total Rewards at Pantherbot, a large up-and-coming advertising agency that creates special video advertisements for social media websites like Facebook. The small, Long Island company, based in Melville, only has 75 employees. Of the 75 employees, 50 employees are women and 25 are men. The average employee is 28 years old.
The organization’s culture is centered on wellness, career growth/exploration, and providing an ideal work/life balance for its employees. That being said, the CEO comes to you and says she wants you to put together a brand new Total Rewards package for 2021 (excluding salary). She tells you that you have a budget of $900,000.
The following are the options you have to choose from. Create the ideal mix of rewards for your employee population, which fits the company culture, and stays within budget. After you have created the package you will deliver to employees, please explain why you thought those options were best.
Please note, you should assume all 75 employees will take medical/dental/vision, if offered. You must come within $10,000 of the budget you have been given. This means you must spend at least $890,000, but no more than $910,000 (your boss will give you a little wiggle room if you go over).
All costs are per employee (unless otherwise noted).
1. Medical Coverage –Annual Cost Per Employee: $6,100
2. Dental Coverage – Annual Cost Per Employee: $1,080
3. Vision Coverage – Annual Cost Per Employee: $120
4. Tuition Reimbursement – Annual Cost Per Employee: $4,000. On average, only 25 people are looking to utilize this benefit.
5. Paid Time Off (PTO) – 25 business days. Annual Cost per Employee: $6,250.
6. Special PTO (If you choose this option, you can create your own assortment)
• Marriage à Providing employees 3 free PTO days in the event they are getting married. Cost would be $750 per employee. On average, 5 employees per year are getting married.
• Bereavement à Providing employees 5 free PTO days in the event a family member dies. Cost would be $1,250 per employee. On average, 6 employees take bereavement each year.
• Jury Duty à Providing employees fully paid Jury Duty with proof of service. Average cost per employee would be $2,500. On average, 4 employees get called each year.
7. Retirement Plan – Annual cost of providing a retirement plan and an employer match would be $8,000 per employee.
8. Weight Watchers – Weight Watchers at Work is a special program where a group leader will come onsite to the office and host a WW meeting weekly. Employees can weigh-in, purchase food, and set goals. Annual cost is $480 per employee.
9. Gym Membership – Fully paid gym membership for employees at any LA Fitness, XSport, or New York Sports Clubs. Annual cost is $420 per employee.
10. Free Meals at Work – Employees will receive free meals during working hours (breakfast and lunch) in the company cafeteria. Meals will encourage wellness as the cafeteria is entirely organic and all meals are calorie conscious. Annual cost is $5,200 per employee.
11. Employee Assistance Program (EAP) – The EAP will provide all employees a safe, confidential place where they can discuss personal, emotional, and financial issues. 24/7 support is provided and counselors can assist any employee in need. Annual cost per employee is $260.
12. First time homebuyer’s assistance – Any employee who is a first time homebuyer, will receive $5,000 in financial assistance to purchase their new home. The home must be on Long Island, to encourage the younger population to stay in the area. Any employee who utilizes the benefit will be required to stay with the company for 5 years, or they have to pay back the money. On average, 3 employees each year would be looking to utilize this benefit.
13. Flu shot clinic – To ease the burden of flu season, a flu shot clinic can be setup onsite so that employees can receive their shot at work. This would cost $20 per employee annually.
Payroll Accounting 2018
ISBN: 978-1259742514
4th edition
Authors: Jeanette Landin, Paulette Schirmer