Reference no: EM131626849

"The package of benefits we offer to our employees needs to be generous enough to attract and keep excellent employees, but our current package of benefits goes too far and should be scaled back. Our current policies were determined when the national economy was doing well and we were losing employees to firms that offered better benefits. Now, the national unemployment rate is much higher, and so these generous policies are no longer necessary. Consider also the fact that We offer more paid vacation days than many firms in many other industries. in addition, very few employees who have joined Our systems have ever indicated that the benefits we offer were the most important factor in their decision. If we reduce the expenditure on our benefits packages, we can devote more resources to other priorities, such as employee training. With an increased training budget, we will be able to train our employees to perform high- value tasks, thereby increasing their productivity."

Explain how well this evidence supports the writer's view that current benefits package should be scaled back and

The money saved should be used to increase the training budget.

Describe what changes or additional information would make the business plan more logically sound.