Chapter 7: Compensation and Benefits
7.5 Cases and Problems
Chapter Case
PTO: Too Little or Too Much?
You just finished analyzing information for the current compensation and benefits program. You find that some changes should be made, as the majority of employees (you have 120 employees) are not happy with what is being offered. In fact, the plan had not been revised in over fifteen years, making it dated and definitely ready for some changes.
One of the major points of contention is the PTO the organization offers. Employees feel the current system of sick time and vacation time offers too few options. For example, one employee says, “I often come to work sick, so I can still have my vacation time for my vacation.” Another employee says, “I have given nine years to this organization, but I receive only three days more than someone who has just started.” Here is the current PTO offering:
| 1+ year | 7 days |
| 5+years | 10 days |
| 10+ years | 14 days |
- What cost considerations would you take into account when revising this part of your compensation plan?
- What other considerations would you take into account when developing a new PTO plan?
- Propose a new plan and estimate the cost of your plan on an Excel spreadsheet. Be prepared to present to the board of directors.
Team Activity
1: Work in teams of four or five. Assume your organization is expanding and wants to open a sales office overseas. What compensation factors would be a concern? Brainstorm a list and be prepared to present to the rest of the class.
2: Go to Canada’s Job Bank Wage Outlook and review the information on the Job Market Trends in teams of three. Pick three different jobs under the management category and record their average salary. Discuss reasons for the pay difference between the jobs you choose.
