Benefits Of Cutting Employee Compensation Essay

Benefits Of Cutting Employee Compensation Essay

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Cutting Employee Compensation
One area of ethical consideration for employers is how to balance expense control with employee compensation. More and more companies are looking for ways to cut the compensation to their employees. These cuts in benefits are leaving the employees to pay more for less benefits or are losing benefits altogether. Providing high quality benefits to employees has always been a way for employers to draw in the best or most qualified candidates. Jensen (2014) stated “ For years now, a key strategy of employers is to shift costs onto workers via higher deductibles and co-payments in part to slow the growth of the total company-paid premium by getting workers to think twice before choosing an expensive test or procedure in hopes these workers become better shoppers. Those moves are translating into rapid deterioration in the percentage of workers who are happy with their health benefits” Let’s look at a few areas that are most often reduced or cut.
In Texas and Oklahoma businesses are opting out of providing Workman’s Compensation. NPR (2015) found that “State laws in both Oklahoma and Texas allow employers to opt out of workers ' compensation and develop their own workplace injury plans. Those plans generally cover fewer injuries, cut off benefits payments sooner, control access to doctors and even impose mandatory settlements. In Oklahoma, we found that most plans blatantly violate the law, yet regulators say they are powerless to respond.” Bill Minick, president of PartnerSource, a Texas company that helps draft laws allowing companies to opt out of state workers ' compensation plans. The opt-out system saves employers 40 to 90 percent in claims costs, according to Minick.
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...step in to help finance some of the costs of the move. However, employers have significantly cut back on temporary relocation benefits, location visit assistance, and spouse relocation assistance. And only a small proportion of companies continue to offer to pay a cost-of-living differential (10 percent) or provide assistance selling the previous home (9 percent). "Instead of moving people to new facilities, companies might have them work as remote workers or take on a different style of work," says Schmit.
There is always tension between, the employer, shareholder, customer and employee on maximizing their share of the pie. Employers are always looking for ways to cut costs and raise profits, unually at the expense of employees. How employers go about cutting these costs are always up for debate. Whose interest are they looking out for? Who really wins or loses?

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