Orion is a business software firm based in Atlanta that employs over 400 people. Orion has traditionally provided legislatively required benefits for its employees including Social Security, workers' compensation, and unemployment insurance. In addition, Orion offers employees health and dental insurance. Orion employees work Monday through Friday on a 9 to 5 schedule. Orion's top executives are considering the idea of adding a flexible benefits plan and implementing a flexible work schedule. Which of the following, if true, undermines the argument that Orion should offer its employees a cafeteria plan?
A)A survey of Orion employees indicates that the majority of employees are very satisfied with the firm's current benefit offerings.
B)Orion experiences very few workers' compensation claims each year as compared to similarly sized businesses in the Atlanta area.
C)Orion employee surveys indicate that most employees are interested in either 401(k)plans or Roth IRAs as methods of saving for retirement.
D)Orion uses an employee leasing firm to handle recruiting, hiring, and benefits administration.

Question

Quizplus · Accepted Answer

A)If Orion's employees are satisfied with the type of benefits offered by the firm, then there is no need to change to a cafeteria plan. Cafeteria plans are useful when employees want more choice and variety in their benefits. Workers' compensation, retirement savings, and employee leasing are irrelevant issues.

Orion Is a Business Software Firm Based in Atlanta That