Computer Help Inc. is a computer timesharing, and software development and sales company. It has been successful in attracting clients for both sides of its business. Staff count has been increasing steadily, averaging 10% per year. The company has expanded from its base, and now boasts mid-town sales offices in New York, Los Angeles, Dallas, and Atlanta, with development staff in New York and Los Angeles. The mainframe computer is in Atlanta.
The company is profitable, and up until recently, before it went public it was owned by partners who were invited to take an ownership position to attract them to the company. The managerial, professional, and technical staff is highly educated software programmers, computer scientists, and management consultants. The sales, production, and service staff are technical school graduates, with some university graduates in the group.
The company has no benefits program. Profits are shared among the partners, and employees are paid competitive wages. Until recently, there has been no need for a benefits program. But the growth of the non-consulting side of the business has resulted in the hiring of staffs, who will not be made partners, and who are now being seen as employees, rather than associates, and who are working for the paycheck, rather than the thrill of creating systems. The partner in charge of administration realizes that he will lose staff to other firms if he can=t offer a competitive benefits package of his employees, and has called you in to consult to Computer Help.
Your task is to create a competitive health care program that will be offered to all employees on an equitable basis. You must get good value for the dollars that you spend. What does the package include? What plan design features would you use?