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case study number 2

Will the rewards that the employees receive will motivate the employees to be
more efficient and will they be more loyal to the company?
To identify whether benefits, like health insurance, contribute to the
motivation of employees
To study factors that contribute to a strong sustainable workforce and job
To study the effects of employee motivation on the organizational
More responsible
Strong competence of
human resources
Employees long term
Salary Policy
Long-established business
Lower Employee Turnover
Large funds outlay.
Financial management.
Company's growth due to
motivated employees’
Employment Opportunities
Retain its Legacy as one of
the best Company-wide. It
would retain its name to
the list of best company to
work for that would
eventually lead to high
market shares.
Hacker/ Corrupt System
It would create
effect between eligible and
legible employees.
The strength includes first, employees are more motivated due to the health
savings account. The employees feel that they are being valued by the
management. Second, is the strong competence of human resources. The
employees are expected to do their outmost best, and they are comfortable with
the organizations activities due to the assurance of health care program. Third,
employees long term commitment due to the incentives given to them, the
motivation boosts them up to stay in the company.
Large funds outlay became a weakness because the company will allocate
more and enough funds to generate health savings expenditures. Second
weakness is the financial restrictions since the profit they will incur will be divided
into the health care program which reduces their retained earnings.
Opportunities include company's growth due to motivated employees’
performance. The more employees are motivated; the more effort they give. As a
result, they can achieve their goals faster which leads to company's growth. Next
is the employment opportunities. Due to the growth of the company, they will hire
more staffs. The company will not face difficulties to find interested employees
because their good reputation to incentives system was evident to their
The Hacker/Corrupt System falls into threats since some employees may
use this as an opportunity to get fund and directly send it to their accounts.
Alternative Course of Action #1: Advantages Offering Consumer Directed Health
Plans to Employee to becoming Responsible Consumers
create mutual benefits for employee as a consumer because they hold
health plans and consumers responsible for efficient use of healthcare
services and spending
combine financial engagement and comprehensive support to move
employees toward becoming empowered consumers of health care
company can manage costs over the long term and be an effective
strategy for delivering quality, sustainable coverage for its workforce
it may be a suitable health plan option for some individuals, but not for
all employees.
Alternative Course of Action #2: Creating an Organizational Culture in the
Workplace that promotes Health and Wellness
Higher Production – A primary motivation for companies to offer
wellness programs is improving employee health and productivity.
More fit employees have better stamina and physical capabilities to
perform work. Mental and emotional well-being that results from
wellness can help employees come to work with a more positive
attitude and team-oriented approach.
Fewer Absences - reducing absenteeism costs can be a company
health strategy. Absences coming from unhealthy lifestyles cost
companies a lot of money and missed opportunities. By reducing stress
and other health issues that contribute to absences, wellness programs
help cut these costs. Employees in work groups and teams better serve
their role if they are at work more consistently.
Employees will have a Happy Workforce - employees want to make the
workplace culture alive and thriving through regular interactions with
coworkers and leadership. The business should consider embracing to
keep employees happy and engaged
Costly - wellness programs are costly. A simple element of wellness is
dissemination of information. Along with staff costs, companies offer
incentives to motivate employees to achieve wellness goals.
Investments in fitness programs and preventive health screenings are
among other common costs.
Uncertainty - wellness programs are essentially an investment in the
workforce and the business and the main problem is the uncertainty
about the tangible benefits of various fitness programs will be offered
to employees.
Alternative Course of Action #3: Establishing Flexible Reward System for
meeting employee need having a diverse workforce regarding culture,
age and personality has advantages and is becoming the norm in the
workplace. With a diversity of employees comes a diversity of needs
for employers to meet. If an employer shows the effort to meet their
employees’ needs, it can lead to greater productivity, improved
employee morale, and reduced absenteeism. Additionally, if an
employee has their specific needs met, they will be healthier, which will
reduce sick time calls.
recruitment and retention, flexible rewards attract and retain potential
employees and may be one way for employers to stand out among the
competition and allow them to recruit top talent.
financial control flex benefits allow for the employer to set a spending
limit for each month, which leads to the business understanding exactly
how much they will be spending every year on their plan. This control
helps with budgeting at the end of the year and becomes a constant
and expected expense for employers.
Exceptional client service – this reward system will continue to attract
and retain best talent and help the company to deliver exceptional client
service and at the same time encourage their people to live happily.
setup cost, the process of designing and implementing is timeconsuming, which is costly for a business. Also, a flex reward may also
require some new strategies to implement and keep track of your plan.
sharing information - making changes to a benefits plan is difficult
enough for a business, in terms of time and money, but it also needs to
be accepted by the employees. Employees need to have an
understanding of why the plan is changing and how it will affect them.
Businesses that take the time to explain the benefits to their employees
will see a great acceptance rate for their plan, and if the employees do
not embrace the changes to their plan, the desired goals and plans of
the company with regards to this benefits will not achieve.
The current health program used by the Whole Food Market gives benefits and
incentives to its employees by funding each employees' account to be spent in healthrelated expenditures though there are few ethical issues that should be consider.
The high deductibles with health savings account reflects the idea that recipients
of medical care should think of themselves as consumers rather than as patients. In
the point of view of the employees, the ethical and legal issues raised by the health
care plan stems from making patients (workers) financially responsible for a
substantial amount of first-dollar (i.e., prior to insurance kicking in) health care costs.
Before the spread of third-party payment (by an insurer or the government), patients
who could afford to pay for health care will pay out of their own pockets.
Next, these programs give employers a window into their workers’ health profiles
that is otherwise an illegal invasion of their privacy. Thus, the health histories of
workers become more transparent to their bosses, this previously confidential
information could allow managers to act with bias (in employee evaluation and
promotion decisions) under cover of concern about employees’ health.
Further, the ethics of how the employer-sponsored health insurance funds are
spent is of consequence to both the employer and the workers. Moral obligations
attach to the employer’s decisions with respect to selecting or designing the plan and
to the employee’s participation in the plan, are collective arrangements funded with
money that would otherwise be part of the worker’s cash wages. Yet, most workers
probably do not know if their employer’s health plan uses their money to pay for items
or services that they consider immoral. Indeed, there have been instances in which
even conscientious employers discovered that they had been unintentionally providing
their workers with health plans that include coverage for morally objectionable items
or procedures. Unless an employer is diligent in excluding morally objectionable
services from its health plan coverage, one or more of those services are increasingly
likely to be in the plan by default.