Case 13-1
Summary
This case discusses how benefits and perks have become the competitive edge in employee recruitment.
About 57% of people report benefits and perks as among their top consideration before accepting a job,
and four of five people would prefer new benefits over a pay raise. Glassdoor Benefits Reviews reports
Analysis
This case study provides an overview of a major change in employee desires, documenting a shift from
benefits instead of pay. Because of this, companies must make decisions as to which benefits to include as
a part of compensation which will attract more desirable employees both in the short term and long term.
Questions
1. Glassdoor reported that most workers say they would prefer new benefits to a pay raise. Why might
that be the case?
Benefits are growing in demand and as a portion of overall compensation, because there are federal and
2. What factors should a firm consider when deciding which benefits to provide its employees?
Considerations include amount of benefits (as a percent of total salary), mix of benefits (those beyond
3. The Top 5 most demanded benefits include health-care insurance, vacation/paid time off,
performance bonus, paid sick days, and 401(k) plan, retirement plan, and/or pension. Which of these
benefits are mandated/statutory benefits?
Many of the above benefits are part and/or additions to mandated benefits—see those below in
4. Given the Top 5 benefits mentioned in Question 3, which benefits, although voluntary, once offered
have certain statutory requirements? What are those statutes and requirements?
Those voluntary benefits that have affiliated statutory requirements include continued health insurance
5. Given the Top 5 benefits mentioned in Question 3, which benefits are voluntary?
Voluntary benefits, as indicated by the listed Top 20 firms in the case, include a myriad of options as
listed below with those in the Top 5 in italics. They include paid time off (vacation/annual leave, sick
6. What are flexible benefit plans and why might they have not come up as a Top 5 employee
requirement?
Flexible plans allow for employees to pick and benefits that meet their needs. There are three types of
7. What trends and issues in health care noted in the text are discussed in the case as being key benefits
for the Top 20 firms?
The two issues discussed in the text are benefits for domestic partners and the personalization of health
8. In examine the Top 20 firms, which firm’s benefit most attracts you and why?
This question asks students to identify the benefit most attractive to them from those listed for the Top 20
Case 13-2
Summary
Statistical Analysis System (SAS) Institute develops software to provide business solutions for their
clients. They have maintained a growth rate of more than 10% per year between 1980 and 2000, survived
five recessions, and have made it on the Fortune “Best Companies to Work For” for almost two decades.
They are known for creating a culture that motivates employees and delivers high levels of employee
satisfaction.
Analysis
The SAS case provides an overview of a company that offers many convenience benefits to their
employees in order to keep employee satisfaction very high. This has directly translated to increased
productivity and extremely low turnover. Information in the case also notes that Google has tried to copy
the model used by SAS to create their award-winning culture.
Questions
1. What are the statutory benefits SAS must offer every employee? What defined benefits do they offer
beyond those requirements?
By law, SAS must offer the following statutory benefits: social security retirement, Medicare,
disability/survivor benefits, workers compensation, unemployment insurance, FMLA, and PPACA. SAS
2. SAS offers an array of employee benefits, especially at their main headquarters. What might be their
rationale for providing such services to their employees?
The benefits that SAS employees get probably make every other worker in the market jealous. However,
the reason why these services exist is not only to have employees happy and satisfied but also to improve
3. What would you suggest if utilization analysis indicated that only a few employees used those
additional benefits such as the work/life center?
The weakest benefit is the one which employees value the least. It is not a benefit if the majority of your
employees are not using it. SAS aims to create a more interactive company culture with these benefits,
4. What seems to be the weakest part of SAS’s benefits package? What would you do instead of offering
that particular benefit?
Even though SAS employs its own medical staff, the insurance policy that are offered to its employees
seem to be weak. It provides easy and quick solutions to the minor health problems as employees can see
a doctor in their office hours. But in case there is a major health problem, when the bill is going to be
5. What additional amenities might SAS offer their employees? Why?
SAS’s employee benefits program started with free M&Ms Wednesdays and it must be that they have
seen increased performance, they have taken this small perk to a whole new level. Having amenities such
6. How does their 3% turnover rate impact training and recruiting expenses?
Low turnover rate is a sign for a company to have loyal employees. For the employees, satisfied with their
jobs and being highly motivated, they always aim to perform at their best. For the company, tunneling its
funds on such employee benefits and amenities, SAS aims to keep the turnover rate at minimum so that