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Continuing Case: The New Benefits Plan

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Chapter conclusion: Benefits for employees are very important for companies. Benefits for employees include various insurance plans, paid vacation days, paid sick leave, paid days off, etc. Different companies need to establish different benefit plans based on their company conditions. In brief, benefit in one of the bridge between employers and employees. 13-21. Draw up a policy statement regarding vacations, sick leave, and paid days off for Carter Cleaning Centers. Policy Statement Regarding Vacations, Sick leave, and Paid Days Off 1. Carter Cleaning Centers Vacation Policy:

– 7 days of vacation leave after 1 year’s employment (pay 50% of wage)
– 10 days of vacation leave after 3 year’s employment (pay 70% of wage)
– 14 days of vacation leave after 5 year’s employment (full paid)
– 17 days of vacation leave after 10 year’s employment (full paid) Notice: 1). The vacation days are not included statutory holidays. (New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day)

2). Please submit your vacation applications one month before your vacation.
3). Please notice that you have the work handover responsibility before your vacation.
4). Please back to work on time.
According to the book, on average, American workers get 9 days of vacation leave after 1 year’s employment, 14 days after 5 years, and 17 days after 10 years. Take that into consideration, Carter Cleaning is a small company, full paid on vacation days for all employees is a huge amount of money. We suggest that the employees who have worked for the company for more than 5 years should get full paid vacation benefits. New employees also should get 50-70% paid vacation benefits. This will motivate the new employees to work harder and stay longer; also this plan will give the long-time employees a good compensation. 2. Carter Cleaning Centers Sick Leave Policy:

-Employees who have the doctor’s notes should have full paid on the sick leave day. (Up to12 days/year)
-For the employee who doesn’t have a doctor’s note: 50% paid of wage at the first time, no paid of wage at the second time.
-Employees who have the following reason should get up to 12 weeks of unpaid leave: own serious illness, birth and adoption, and take care of a seriously ill child, spouse, and parent. (We guarantee your position with no loss of benefits at the end of the leave) Notice:

1). Please bring your doctor’s note or your relative’s doctor’s note while back to work.
2). Employees who absent without any doctor’s note for more than to 4 days/month will receive warning.
3). Quarterly lotteries for the employees with perfect quarterly attendance.

13-22.What would you tell Jennifer are the advantages and disadvantages to Carter Cleaning Centers of providing its employees with health, hospitalization, and life insurance programs?

For Carter Cleaning Centers, Providing its employees with health, hospitalization, and life insurance programs has advantage and disadvantage. The disadvantage is that these programs will cost a lot because these programs are so expensive. Carter Cleaning Centers need to consider about how to control the cost. Nevertheless, there are some advantages for providing these programs. 1. Most health plan and insurance provide the yearly physical check. This will help the employees to prevent the potential illness. 2. Some companies purchase the insurance, which include the pregnancy care for the female employees. This will avoid the judgment with pregnancy discrimination and the sexual discrimination. 3. Life insurance plan is very comprehensive. It wide provides health and physical condition insurance for employees. In general, all employees should have a life insurance.

13-23.Would you advise establishing some type of day care center for the Carter cleaning employees? Why or why not? We suggest that Carter can establish some type of day care center because we believe that to establish a day care center at the firm is an easy and efficient solution. It will not cost much money to build a children playground. It may only require one guide or teacher to over watch the children while they are playing at the playground. This solution can show the care from company, which it can help Carter to build better relationships among its employees.

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