World_Measurement_Report-17076558960136263 (1)

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Ivy Tech Community College, Indianapolis *

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Management

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Feb 20, 2024

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Running head: WORLD MEASUREMENT REPORT 1 World Measurement Report Student’s Name Institutional Affiliation

2 WORLD MEASUREMENT REPORT World Measurement Report Certainly, every position within a company is vital and carries its own unique stressors. For Mr. Jacobs, President of World Measurement, daily stress as he makes decisions that affect the entire staff; deciding where to cut to achieve costs savings without creating employee reaction, especially since reductions may mean the loss of employees. The benefits preference data from his assistant, received just this morning, only further complicate his decision. As a result, there can be attrition and the employees may become “disengaged,” potentially working less as a result of their discontent. This examines the second option. Altering the benefits and changing the costs to be paid by the employees includes a lot of financial figuring as well. Costing of Packages Implementing copays for insurance, dental, vision, health savings account (HSA) fee, life insurance, and long-term disability, the company saves a total of $1,230 annually — but $1,200 annually would bring it down to exactly the 3% target (World Measurement Exhibit, n.d.). However, the employees’ monthly cost is $102.5. Reducing the vacation benefit of one week per anniversary year, incorporating a rolling vacation schedule that would make dates that are in high demand ineligible for those faster in for the first quarter of the next year, eliminating the 10-minute PAID break, eliminating one of their paid holidays, and eliminating two paid sick days per year would save the company $569.40/year. Under option two, the company would have better claims processing and a variety of copays, resulting in benefit costs which are 13% lower (World Measurement Exhibit, n.d.). However, an increase in the health insurance deductible to $1,000 and a probationary period would shift more of the financial burden to employees. Total cost savings to World

3 WORLD MEASUREMENT REPORT Measurements with this option are $900 per year, plus other benefit reductions – elimination of thrift plan payment, two paid holidays and tuition reimbursement, which amount to an additional $321 per year. Mr. Jacobs has quite a decision to make. The best outcome for the company and its employees must be sought. Financial goals must be balanced against non- financial objectives. Package Recommendation Recognizing the importance of insurance to employees up front, both options have a measure of employee dissatisfaction built in by having employees contribute to copays. Yet option 2 again seems to take a more balanced approach with much lower copays. This might not make a $500 raise in the health insurance deductible any more popular with employees, but given the bigger adjustments this seems to matter little to certain employees the author knows. A key factor to option 2 is adding dates and creating probationary periods for insurances. Mr. Jacobs realizes these might anger employees, but sooner or later someone has to look out for the company's financial health. When considering which of the two options entails less of an employee input the straight answer is option 2, by a mile. Liquidating proposed discount in benefit packages so that they do not affect employees directly more than they need to and more than is necessary to save money for the company. Mr. Jacobs is duty bound to steer Oracle through difficult times. A solution can therefore not be to the exclusion of one side or the other, but must accommodate both. The recommendation for option 2 is based on a sound assessment of potential impact to employees as well as a strategy to meeting critically necessary cost-saving measures for the overall well-being of the company. Mr. Jacobs' commitment success and survival for the

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4 WORLD MEASUREMENT REPORT company speak to the need to make decisions that are wise and that not everybody might like in terms of what is good for the long-term viability of World Measurement. Strategy that Requires Less Employee Input Certainly, the second option requires less input on the part of employees than the first option. Although the first option did have a significant cost-savings for World Measurement, albeit one that hinged on foisting a higher financial burden to its employees through increased copays. The first option sees copays for the pension program, hospital, surgical, medical, and major medical premiums costing a grand total of $5,725 plus the elimination of one paid holiday per year (World Measurement Exhibit, n.d.). Although the removal of a 10-minute break and the addition of convening social security selections with pension plan does not seem as if it would directly affect employees, the increase in co-pays and changes to benefits will most likely come out of their pocket in the long run. Unlike option 1, a more detailed examination of the changes in option 2 shows a much smaller impact on the employee’s bottom line. A better idea to our savings is in the fine print – such as the introduction of improved claims processing for unemployment, workers’ compensation, and long-term disability that leads to a $33.26 company savings, but does not directly affect employee wages. While the impact of the probationary period and number of employees with less than one year of service is unknown, it is assumed that the majority of current employees will be minimally affected. The primary cost contributors of potential Salary Adjustment Option 2 changes include life insurance and dental insurance premiums and the hospital, surgical, medical and major medical plan copays. However, the projected bottom-line impact to employees is presumed to be less taxing than the effects Option 1. Though it is difficult, Mr. Jacobs should try to be as honest and direct as he can. A full company meeting is a good way to accomplish this. Then he should clearly articulate that

5 WORLD MEASUREMENT REPORT every option was considered, and how necessary each person is to succeeding and turning the company's fortunes around. At that point, he should acknowledge that very soon he'll need to make some very, very tough decisions as President. Although employees may not understand the necessity behind dissolving their remote work agreements, they will likely respect the transparency. To help this make sense to everyone, Mr. Jacobs should distribute full documents that describe exactly what modifications are being made in order to get everybody on the same page at home. Once changes have been announced, Mr. Jacobs can announce the good news. Inform everyone that this all comes with a cost increase -- for themselves -- because the company will be rolling out a wage increase. This will help illustrate that the company is trying to ease the financial strain created by all of this adjustment. This way Mr. Jacobs is able to strike a balance between clear communication, empathy and taking measures to get rid of some of the sting employees will no doubt feel during these tough times.

6 WORLD MEASUREMENT REPORT References World Measurement Exhibit . (n.d). Ivy Tech Community College. https://ivytech.edu/student- services/ivylearn-canvas/

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