Human resources case 2 Essay Example | Topics and Well Written Essays - 750 words

Human resources case 2 - Essay Example Previously the company only provided a few health care programs to its employees. This has lowered the cost of benefits for the company to a certain extent. Currently the company is offering four different health care plans to its employees. This flexibility allows the employees to choose a health care plan that suits their personal needs. Offering multiple health care plans has proven cost effective for FedEx because not all employees need an extensive health care plan. Some employees will be happy to take a limited health care plan and will be happy to take more of their income to home. The flexibility offered by the company will allow them to customize their health care plans and to decide how much income they want to set aside for health care plan. Employees who would choose programs that offer less coverage will only be eligible for a limited number of benefits. This will drive down the cost of the firm. Previously the firm offered a few health care plans to its employees. This made employees obligated to have benefits that might not be suited to them. This also increased the cost of health care benefits because the firm was more exposed. Firm had to provide the same level of benefits to all of its employees. By offering different health care coverage plans, the firm has made itself less exposed to risk because some people would choose a plan that offers less health care benefits which will reduce the liability of the firm. This is how FedEx has taken a very good step to slow down increases in cost of benefits by allowing its employees to choose from different health care plans. FedEx has started many programs like disease management program, training program, and nursing hotline to help its employees with their health related issues. These programs are aimed at helping employees of the company maintaining good health and fight diseases and other illnesses swiftly. All these programs are also playing a great role in decreasing