Final answer:
The HR manager should institute cost-containment strategies to address the issue of benefits that are too costly yet heavily used by employees. This could involve negotiating better rates with providers, promoting preventive health, or introducing wellness programs. Revising and researching benefits might also be considered to ensure employee needs are met in a financially sustainable way.
Step-by-step explanation:
If the findings from the benefits needs assessment showed "benefits that are too costly but are heavily used by employees," the HR manager should consider instituting cost-containment strategies. This approach might involve negotiating better rates with benefits providers, encouraging the use of less expensive alternative services, or implementing programs that focus on preventive health to reduce the need for more costly treatments.
Additionally, the HR manager could look into wellness programs that promote healthier lifestyles, thus potentially decreasing overall usage of costly benefits. Dropping heavily used benefits might lead to employee dissatisfaction and could negatively impact morale and retention.
Revise benefits that are not meeting needs and researching new benefits could also be complementary actions depending on the specific context and outcomes of the needs assessment. Dropping underutilized benefits might be an option but is not directly related to the issue of certain benefits being heavily utilized and too costly.
Therefore, a combination of revising the benefits package and cost-containment could be the most promising approach for managing the financial sustainability of employee benefits while still meeting employee needs.