QUESTIONS: 1. Based on (EXHIBIT 13.2), paid family leave is offered by few organizations. Why do you think that is? What does paid family leave cost? Would a paid family leave benefit be important to all employees?What about you? Why or why not? 2. What role might paid family leave play in helping employees stay in the work force? What is the business case broadly for (or against) offering family leave?
QUESTIONS: 1. Based on (EXHIBIT 13.2), paid family leave is offered by few organizations. Why do you think that is? What does paid family leave cost? Would a paid family leave benefit be important to all employees?What about you? Why or why not? 2. What role might paid family leave play in helping employees stay in the work force? What is the business case broadly for (or against) offering family leave?
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
Related questions
Question
100%
QUESTIONS:
1. Based on (EXHIBIT 13.2), paid family leave is offered by few organizations. Why do you think that is? What does paid family leave cost? Would a paid family leave benefit be important to all employees?What about you? Why or why not?
2. What role might paid family leave play in helping employees stay in the work force? What is the business case broadly for (or against) offering family leave?
![Exhibit 13.2 shows employee access to selected benefit programs, by establishment size. We can see that
larger establishments are much more likely than smaller establishments to offer many types of benefits.
Many students tell us they are struck by how low the retirement and health insurance figures are. The follow-
up question we get is. "Doesn't everyone get a retirement package?" The answer is no! Many Americans work
in jobs with no paid retirement. Many also receive no health coverage.
To organize the rest of this chapter, we will use a somewhat more detailed categorization of employee benefits
(Exhibit 13.3). We will use these seven categories to illustrate important principles affecting strategic and
administrative concerns for each benefit type.
EXHIBIT 13.2 Percentage of Full-Time Workers in U.S. Private Industry with Access to Selected Benefits
Programs, by Establishment Size
Medical care
Short-term disability insurance
Long-term disability insurance
All retirement
Defined benefit pension
Defined contribution plan
Life insurance
Paid leave
Sick
Vacation
Holidays
Family
All
70%
42
34
67
15
64
56
75 79 80 20
Establishment Size
1-99 Employees
56%
30
24
53
7
51
40
67
71
73
15
500 or More Employees
91%
63
58
88
39
82
82
88
90
91
31
Source: U.S. Bureau of Labor Statistics, National Compensation Survey. Employee Benefits in the United States-March 2020. Bulletin
2793. www.bls.gov/ncs/ebs.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb23e2c4f-efaa-417a-9351-1cf888c16925%2F94c350fb-bb90-44ea-8b16-cb68b6f3c480%2Fp7j8xvdj_processed.png&w=3840&q=75)
Transcribed Image Text:Exhibit 13.2 shows employee access to selected benefit programs, by establishment size. We can see that
larger establishments are much more likely than smaller establishments to offer many types of benefits.
Many students tell us they are struck by how low the retirement and health insurance figures are. The follow-
up question we get is. "Doesn't everyone get a retirement package?" The answer is no! Many Americans work
in jobs with no paid retirement. Many also receive no health coverage.
To organize the rest of this chapter, we will use a somewhat more detailed categorization of employee benefits
(Exhibit 13.3). We will use these seven categories to illustrate important principles affecting strategic and
administrative concerns for each benefit type.
EXHIBIT 13.2 Percentage of Full-Time Workers in U.S. Private Industry with Access to Selected Benefits
Programs, by Establishment Size
Medical care
Short-term disability insurance
Long-term disability insurance
All retirement
Defined benefit pension
Defined contribution plan
Life insurance
Paid leave
Sick
Vacation
Holidays
Family
All
70%
42
34
67
15
64
56
75 79 80 20
Establishment Size
1-99 Employees
56%
30
24
53
7
51
40
67
71
73
15
500 or More Employees
91%
63
58
88
39
82
82
88
90
91
31
Source: U.S. Bureau of Labor Statistics, National Compensation Survey. Employee Benefits in the United States-March 2020. Bulletin
2793. www.bls.gov/ncs/ebs.
![Your Turn
Organizations have implemented and expanded paid family leave practices in an effort to help employees
better balance work and family and also to help them be more successful in attracting and retaining employ-
ees who place a priority on such balance. A number of organizations report that improvements in paid leave
have helped improve employee retention (and recruiting success).
Evolving Benefits: Paid Leave
Earlier, we saw examples of companies that believed they documented tangible benefits, including Google
and Best Buy. As another example, In Austin, Texas, a study of the implementation of a citywide paid sick
days ordinance reported that city businesses saved $4.5 million annually due primarily to lower turnover and
the community was estimated to save $3.8 million annually due to fewer emergency room visits, less flu con-
tagion, and other public health improvements. (In the time of Covid-19, one presumes these health benefits
would have been still larger.) Anecdotal evidence is less systematic and large scale but can provide further
insight. For example, one recruiter reports that having paid leave policy "often sealed the deal, especially
for women and younger candidates" and that such groups often raised the paid leave question "right off the
bat" in talking about the position.
1. Earlier, we saw in (EXHIBIT 13.2) that paid family leave is offered by few organizations. Why do you think
that is? What does paid family leave cost? Would a paid family leave benefit be important to all employees?
What about you? Why or why not?
2. What role might paid family leave play in helping employees stay in the work force? What is the business
case broadly for (or against) offering family leave?
Sources: Joan Michelson. How Small Companies Can Offer Great Paid-Leave Programs Harvard Business Review, Janu-
ary 7, 2021. HBR.org. National Partnership for Women & Families. Paid Sick Days Are Good for Business. Fact Sheet.
October 2020; T. L. Rhodes, "Paid Family Leave Is Increasing Employee Retention Rates," Risk & Insurance, July 18, 2018,
https://riskandinsurance.com; A. Van Abbema, "How Best Buy Cut Its Staff Turnover More Than 30 Percent in Four
Years," Minneapolis/St. Paul Business Journal, December 6, 2018;](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb23e2c4f-efaa-417a-9351-1cf888c16925%2F94c350fb-bb90-44ea-8b16-cb68b6f3c480%2F4gl2br_processed.png&w=3840&q=75)
Transcribed Image Text:Your Turn
Organizations have implemented and expanded paid family leave practices in an effort to help employees
better balance work and family and also to help them be more successful in attracting and retaining employ-
ees who place a priority on such balance. A number of organizations report that improvements in paid leave
have helped improve employee retention (and recruiting success).
Evolving Benefits: Paid Leave
Earlier, we saw examples of companies that believed they documented tangible benefits, including Google
and Best Buy. As another example, In Austin, Texas, a study of the implementation of a citywide paid sick
days ordinance reported that city businesses saved $4.5 million annually due primarily to lower turnover and
the community was estimated to save $3.8 million annually due to fewer emergency room visits, less flu con-
tagion, and other public health improvements. (In the time of Covid-19, one presumes these health benefits
would have been still larger.) Anecdotal evidence is less systematic and large scale but can provide further
insight. For example, one recruiter reports that having paid leave policy "often sealed the deal, especially
for women and younger candidates" and that such groups often raised the paid leave question "right off the
bat" in talking about the position.
1. Earlier, we saw in (EXHIBIT 13.2) that paid family leave is offered by few organizations. Why do you think
that is? What does paid family leave cost? Would a paid family leave benefit be important to all employees?
What about you? Why or why not?
2. What role might paid family leave play in helping employees stay in the work force? What is the business
case broadly for (or against) offering family leave?
Sources: Joan Michelson. How Small Companies Can Offer Great Paid-Leave Programs Harvard Business Review, Janu-
ary 7, 2021. HBR.org. National Partnership for Women & Families. Paid Sick Days Are Good for Business. Fact Sheet.
October 2020; T. L. Rhodes, "Paid Family Leave Is Increasing Employee Retention Rates," Risk & Insurance, July 18, 2018,
https://riskandinsurance.com; A. Van Abbema, "How Best Buy Cut Its Staff Turnover More Than 30 Percent in Four
Years," Minneapolis/St. Paul Business Journal, December 6, 2018;
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