Question

Burr Incorporated spends approximately 20% of its budget on employee benefits. In an effort to curb costs, Human Resources has decided to run a pilot program with volunteer employees, in which volunteers received a 5% raise in pay for a 25% reduction in benefits. During the first year of the pilot program, the volunteers’ productivity matched or exceeded their previous performance.Which of the following, if true, would provide the strongest justification for Burr Inc. not to implement the pilot program company-wide?(A) 55% of the employees who chose to take part in the pilot program were under the age of 30 and so were less worried about retirement benefits being cut.(B) Other companies that have implemented similar programs successfully have all been much smaller than Burr Inc.(C) The pilot program volunteers were among the employees in Burr Inc. who were least likely to take sick days.(D) Promotions amongst those in the volunteer group were contingent upon their performance while in this group.(E) Alternatives to cutting benefits might be able to save Burr Inc. more than 5% of what the company pays in salary and benefits.

Answer 1

option D

Step-by-step explanation:

This might increase cost of salary since most of the workers in the pilot group are due for promotion based on their performance which would result in putting them on a new salary scale coupled with their 5% hike, this might proof to expensive to run causing a shake across the salary scale of the company.