As an HR director at Crangle Fixtures, Peer Review 6 help


Please demonstrate critical thinking abilities. No fewer than 100 words for post.

For this response, should outside sources be used to support the content within the postings, proper in-text citations and correctly formatted references should be prepared consistent with the APA (6th edition). The list of references should be physically positioned at the end of the postings.

As an HR director at Crangle Fixtures, your bonus this year is based on your ability to cut employee benefit costs. Your boss has said that it’s okay to shift some of the costs over to employees (right now they pay nothing for their benefits) but that he doesn’t want you to overdo it. In other words, at least one-half of your suggestions should not hurt the employee’s pocket book. What alternatives do you want to explore and why?

Ah, the age-old case of ethics and greed; to get more for me I have to take away from others…

Let me start by saying, I would begin by looking at the organization’s current options. Do we have a cost-centered approach, what about a flex plan, what is our absolute level of benefit payments, and what do our employees need? Regardless of whether Crangle is in the private or public sector, benefits are important to and often necessary for employees. “In today’s competitive environment controlling all costs has become critical… One of the main areas in which organizations are attempting to emphasize cost containment is employee benefits” (Bergmann et al., 1994). Although most employers aren’t offering lavish benefits, there is a wide selection of benefits that can be offered other than the legal required payments such as retirement and savings plans, life insurance, death benefits, health insurance, paid time off, breaks, reimbursements, discounts on goods or services, meals, educational reimbursements, or child care reimbursements, to name a few. My suggestions to my boss would be determined by the benefits that are currently available AND unavailable to employees. If Crangle wasn’t currently offering discounts on gym memberships or cell phone plans, we could offer it to employees by having their “share” of the cost taken out of their paychecks then paid for by Crangle, and the extra money could be used for the bonus. The key is to analyze the organization to understand and offer something that employees want while also providing some kind of benefit to the organization (reduced turnover, for example). “A benefits package must be congruent with the goals of the organization as constrained by the firm’s ability to pay. In designing the appropriate plan, a firm must consider both the benefit level and the benefit structure” (Bergmann et al., 1994). The next question to answer would be that of how much? How much of “this” should be provided to employees? Similar to the process in determining the levels in retirement income, I would consider the level of compensation, payments that need to be made from the employee/employer as a result of offering the benefit, other income sources, how to factor seniority into a payout formula, and what Crangle can actually afford (Milkovich, 2014, p. 470-471). Although every organization is different, it might be helpful to use a formula, such as this, which was developed to conduct a cost-benefit analysis of mitigation options by creating a measurement of the quality of life, or Life Quality Index (LQI):

L = e^k * g; where “L” is the LQI, “e” is the life expectancy at birth, “k” is the measure of trade-off between the resources available for consumption and the value of the time of healthy life, and “g” is the GDP per capita (Narasimhan et al., 2016). “Rational criteria in the context of societal decision making can be derived on the basis of socio-economic considerations. The LQI is used… to establish quantitative criteria for the evaluation of the efficiency and acceptance of investments into life safety” (Narasimhan et al., 2016). The reason this is important here is because, as a manager looking for a bonus, I would need to be looking at the long-term and not the short-term. What will keep the employees happy and sticking around? I am a firm believer in motivating positive behavior through mutual respect while also believing that dedication to the company’s mission is of the utmost importance. If the employee feels safe and secure in their position, so must the organization feel secure to maintain its success.


Bergmann, T.J., Bergmann, M.A., and Grahn, J.L. (1994, September 1). How Important are Benefits to Public Sector Employees. Public Personnel Management (23)(3), p. 397-406.

Milkovich, G., Newman, J., & Gerhart, B. (2014). Compensation (eleventh edition). New York, NY: McGraw Hill.

Narasimhan, H., Ferlisi, S., Cascini, L., DeChiara, G., and Faber, M.H. (2016, April 2). A cost-benefit analysis mitigation options for optimal management of risks posed by flow-like phenomena. Natural Hazards (81):S117-S144. DOI 10:1007/x11069-015-1755-1