The benefit determination process

Thebenefit determination process


Thebenefit determination process

  1. Cost Containment as per the Textbook

Theleading cost-containmenttactic recently is the outsourcing option. It involves hiring vendorsto manage the benefits programs. As such, consistency,decentralization, and cost control are attained (Newman,et al. 2014 p. 446).Outsourcing enables a company to focus on its central business.

  1. Company Cost Containment Measures

Thecost containment measures that my company has undergone are adoptingthe probationary periods and the copay measure. The probationaryperiods were acquired because in the past, the employees would workfor a month or two, then leave after making the company incur thebenefit coverage cost. Therefore, putting them on probation for threemonths before beginning the coverage process would help the companyreduce its expenses in case one leaves. The copay measure wasemployed to ensure there is consistency in the coverage contributionas a percentage of the employee’s salary is taken into theiraccount (Newman,et al. 2014 p. 446).These have helped the organization to lower its costs and achievestability in the benefit coverage. To the employees, it has helpedthem have a secured benefit coverage as the copay measure mandatesthem to make contributions.

  1. Crangle Fixtures

Asthe HR directorat Crangle Fixtures, with a bonus based on how the employee benefitcosts will be lowered, the alternatives I will explore arecontributory, and the employee financed alternatives. Thecontributory alternative will help to lower the employee benefitcosts by having the cost shared between the employee and employer(Newman,et al. 2014 p. 436).The employee financed alternative will be beneficial because, boththe employer and the employee will have certain costs to which theyare fully obliged to bear the costs.

  1. Christian Worldview

Anemployer can integrate the idea of employee benefits, and theunderstanding of the Christian Worldview. This can be through thefact that the employers may opt to indulge the employees incontributing to the employee benefits account. However, the ChristianWorldview requires that the contribution should not be too high tomake the employee’s income insufficient to meet their basic needs(Newman,et al. 2014 p. 436). Thisis despite the aim by the organizations to lower the benefit costs.


Newman,J., Gerhart, B., &amp Milkovich, G. (2014). Compensation.