As director of HR you are discussing cost pressures on the company with the CEO and the CFO.Two possible options are suggested: (1)eliminating raises for employees next year or (2)reducing the health benefits for employees.The CEO and CFO ask you which reduction will cause the most dissatisfaction among employees.You say that research has implied that

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Research suggests that employees value health benefits highly and are less likely to tolerate reductions in coverage than they are to forego raises or bonuses. In fact, health benefits are often the most important component of the compensation package for many employees, particularly those with families or pre-existing medical conditions. Eliminating raises will surely lead to some dissatisfaction, but reducing health benefits is likely to cause more significant dissatisfaction and even resentment among employees.

As Director of HR You Are Discussing Cost Pressures on the Company