Question

Which strategy can be legally adopted by organizations looking to restructure the workforce to minimize the expense of benefits?

a. limiting the coverage on life insurance based upon an employee's age
b. recruiting new employees instead of demanding overtime from existing employees
c. using more full-time rather than part-time employees
d. substituting HMO and PPO plans with traditional health insurance plans
e. paying existing workers overtime instead of adding employees

Answer 1

To reduce benefit expenses legally, organizations can recruit new employees rather than pay overtime to current employees, which is cost-effective and complies with labor laws. Therefore correct option is B

Step-by-step explanation:

When organizations look to restructure the workforce to minimize the expense of benefits, one legal strategy they can adopt is recruiting new employees instead of demanding overtime from existing employees. This approach avoids the higher costs associated with overtime pay, which can include both increased hourly rates and the potential for additional benefits eligibility. Furthermore, under certain labor laws, such as those in France, employing a large number of workers could trigger additional costs and requirements, like creating worker councils and profit sharing, which can be sidestepped by maintaining a smaller workforce or using alternative hiring strategies.