JCS Technology Essay

I. Introduction JCS Technology is a small IT company that is owned by Steve Puzder. Steve employs ten employees of which six are full time, two are part time, and two are contractors. JCS Technology has been in business for 5 years. All the employees have been with JCS Technology for 5 years. The six full time employees are paid an hourly rate along with completion bonuses, the part time employees are paid an hourly rate, and the contractors are paid per job along with completion bonuses. JCS Technology has a small office and most of the work is done outside of the office. There is one full time person in the office all the rest of the employees work 95% of their time outside the office. Employees are paid every week with monthly bonuses. The IT field is always changing therefore JCS Technology offers education reimbursement which also includes any tests that need to be taken to get certifications that will keep the employees up to date in their skills. Each employee has a company issued laptop and cell phone. Flex scheduling is also offered along with one week paid vacation. We are going to look at adding paid mileage as most employees have to travel to get to the job site and the job site can change more than once a day. We will also look at medical care as we don’t know what is going to happen with Obama Care. Then lastly we are going to look at a 401k. All of JCS Technology’s employees are fairly young so we are going to see what it is going to take to make this company grow as they grow. I. Statement of Issues JCS Technology is a very small and young company which does not have a very high profit margin. Along with being a young company the employees are also young and all single males. With only ten employees and six of them are full-time Steve has not researched a benefit package other than the things that are needed to perform the tasks to complete their job. After looking at three other small IT companies JCS Technology seems to offer about the same benefits as his competitors. I did find that most IT companies do offer some type of car allowance as there is a lot of travel time. I did a survey of all the employees that Steve employs and found that there are some benefits that the employees would like to see and others that are not of immediate concern. I asked the employees to rank a group of benefits in order of importance to them. These benefits include more vacation time, flex scheduling, car allowance, health care, bonuses, and a retirement plan. II. Literature Review There is a wide range of benefits that may be offered such as educational, family, lifestyle, recreational, retirement, savings, and transportation. Other benefits that are mandatory are Social Security, Medicare, unemployment insurance, worker’s compensation, COBRA, and FMLA. Benefits are incentives to attract and keep good employees and are also a way of meeting the needs and wants of employees. Another role of benefits is to provide income protection to workers lacking income. Five principal types of income protection delivered by benefits are: (1) disability income replacement, (2) medical expense reimbursement, (3) retirement income replacement, (4) involuntary unemployment income replacement, and (5) replacement income for survivors. (Dave Mote, 2011) Many consumers make random choices, follow the advice of others, or pick a plan that may include a particular medical group. A survey was conducted of 1,800 enrollees and patient in Iowa. It was conducted by the Health Institute at the New England Medical Center Hospitals, Boston, with a grant from the John A. Hartford Foundation. None of the plans received excellent ratings.†I think we’re headed toward more consumer choice among competing health plans, and the choice will be largely determined by survey results such as this one,† says Paul Pietzsch, HPCI president. Blue Cross and Blue Shield of Iowa are reviewing the study and would like participate in another study but would like to revise some of the questions. [ (Bergman, 1993) ] Do consumer-driven health care plans offer a more affordable health care plan? Myth has it that CDH plans do not reduce the costs but rather shifts them. Data found that there was almost a 14% difference in favor of the CDH plans he study also showed that CDH plans do not â€Å"cherry pick† the youngest, healthiest, and richest. The data also shows that enrollment in CDH covers healthy along with chronically ill. It also looked at two chronic conditions and showed that the medical costs tend to less for customers of a CDH plan. [ (Reindl, 2010) ] III. Issue Analysis JCS Technology is a small company that does not offer any health care plans. Steve feels that he is a small company and cannot afford offer this type of benefit. With Obama care in the near future we looked at if heath care is something that can be offered now or in the near future. Right now the tax credit is 35 percent of the cost that a company paid premiums that increasing to 50 percent in 2014. After interviewing the six full time employees of JCS Technology I found that health care is not a major concern of the men right now. Bob, Joe, and Sam being the oldest of the group stated that they would like to have some type of retirement plan verses health care. Jesse, Cody, and Richard being the youngest of the group stated that they would like more vacation time. Over half the guys said they would like a fitness program. All of the employees stated that they would like a car allowance as there is a lot of travel time involved in their jobs. IV. Issue Analysis We are going to look into maybe offering AFLAC in the place of health care coverage right now. The employees are being paid a modest pay for the size of the company, but the men have expressed that they are not really sure about pay anything towards health care at this time. We have time before Obama care goes into effect so the men will begin to look more heavily at heath care next year maybe in place of the bonuses that they are getting right now. Since all the employees have been with the company for five years we will look at adding one more week of vacation also we may also give the men an opportunity to buy extra vacation days. We are going to look at the gas mileage that each of the employees are getting with their car and look at getting a company gas card for the crew to use. If the gas mileage is low on average then we will figure out a fair amount to pay per mile that each employee drives on monthly bases. Next we are going to look into a fitness program for the employees. Since all the employees are young and male we are going to hire a nutritionist and add a quit smoking program. We are going to check the local recreation center and the local gyms to get the best offer for memberships for all the employees this will also include the part-time employees. V Issue Solutions After some research we have found that there is wide range of health care programs. Rather than try to set up a company program we looked at individual plans. The plans run from 93 dollars a month for a very high deductable ($10,000) to $610 a month for a low deductable. The men are young and healthy, but are on the road for about 30% of their time. It would be nice if the men had a health care plan just in case but do we offer the high deductable with the company paying the premium or offer a lower deductable with the employees paying part of the premium. When questioning the men they did not want to give up any pay to get better health benefits. If the company stops the bonus program then there is room for some health care. If we stop the bonus program the men will be up-set as each one of them as expressed that they do not want to give up any money for health care. Bob, Jesse, Richard, and Cody said that they would really like a fitness program, Frank, Sam, Terry, and Jack said that they would like a car allowance of some kind. All the men expect for Richard and Bob would like more vacation time. None of the men are interested in a retirement plan. Five of the men smoke and only two would like to quit. With little impact to the bottom line we can add a fitness program. For the men that wish to quit smoking we are going to offer them and incentive to reward them upon them completing one year of non-smoking. VI Solution and its Implementation I have found it hard to work out a plan that all the men would be happy with. With an annual salary of $50,000 plus a year the men are quite happy the way things are as far as their salary goes. As of January 1, 2012 the company will no longer be offering completion bonuses which will equal to about $5,000 a year. Each man will be offered a yearly membership to the gym of their choice. The men that smoke will be offered help to quit smoking. We have decide that if the men are interested in a health care plan that they can get one on their own and the company will pay 50% of the premium up to $3,000 a year. Each of the men will be given a $100 a month gas allowance as we found that each person drives about 500 miles a month. Those employees that choose not to get health insurance the company will reimburse 50% of their car insurance as a replacement. We have decided not to add any more paid vacation time at this present time but we are going to offer a buy vacation time: each employee will be able to buy three vacation days at the rate of $50 per pay period. The men are giving up a little when it comes to the bonus that they will not longer receive but Steve and I feel that we have come up with a plan that everyone can live with. VII Justification Steve really wanted to try and offer his men the best things that he could and things that would make a difference to each one of the men. The men that work for Steve are like family to him and he tries to make his company one that each man can take pride in working for. We fell that we took what each person had to say and applied it to the decisions that we made. The men really did not want to give up any cash that they were making but we think that what we are offering will make up any money that we may have taken away. We looked to see what the changes would cost the company and the benefits to each the company and the employees and feel that we did the best for everyone. VIII Reflection Meeting with Steve and his employees was very enjoyable. I have not had the chance to meet with a company and discuss things that could change a year or more of a person’s life. The thought of making life changing decisions for someone else is pretty scary. You try to make everyone happy but you can’t you have to make the best decisions for the company. If you make the wrong choices for the company it could be devastating. I have learned that it would be wonderful if you could please everyone which for a small company like the one that I looked at it may be possible but not probable. Large companies have to look at the bottom line where I think that some smaller companies may have lee way in their thinking. All the men that work for Steve were get in giving me their honest feed back about what they would have like see happen with their benefits. I had to take a step back and stop and think what was best for the company in the end. I wanted to give the men what they were asking for but then I knew it was my job to do the best thing for the company. I know that it was a small company that I worked with and a larger company is going to have more issues to look at and I look forward to the day that I can put to work what I have learned in this class and doing this project. I know that my research will not end here because there are so many more benefits that I want to take a closer look at. Such as the tax credits for health care and other credits that larger companies receive.