4-2 Case Study: Cost Cutting At Ventacare essay
Supplemental Case Chapter 10: Reducing Prices at VentaCare VentaCare Nursing Houses gives personal look after over 500 residents in three totally different areas. The corporate employs 250 workers members with quite a lot of obligations together with RN’s, nursing assistants, kitchen workers, custodians and directors. VentaCare has a fame of offering superior care and has a ready listing for residents prepared to maneuver in to their houses. Additional, the corporate enjoys a comparatively low worker turnover charge. Nonetheless, some current cuts in federal funding have created some monetary difficulties for the corporate. VentaCare has reduce prices in all features of their operations, however the firm nonetheless has not accounted fully for his or her anticipated finances shortfall and should now look at personnel prices. Because of state necessities for minimal ranges of workers to residents, slicing workers isn't an choice. They've determined to briefly freeze salaries, however this can nonetheless not create sufficient financial savings for the corporate. Allison Wiggan, the Director of Human Sources, has been requested to look at the firm profit program for price slicing choices. The corporate presents a reasonably beneficiant advantages program, which is kind of pricey for the firm. Along with a medical health insurance plan, the corporate gives each short-term and long-term incapacity insurance coverage and life insurance coverage for which the corporate pays the total premium. The corporate gives paid day off together with eight paid holidays, a median of ten trip days and 5 sick days every year. As a retirement profit, the corporate gives a 401(okay) plan the place they match the primary three% of the worker’s contributions. The corporate additionally presents tuition reimbursement for workers pursing any superior diploma. To advertise worker wellness, they provide quite a lot of applications such a month-to-month lunch to debate well being issues. And eventually, they provide a full-service Worker Help Program. Altering or eliminating any of those advantages goes to be a problem. A part of the cause VentaCare has had such success is that they're able to retain gifted and devoted workers members. Whereas the corporate’s pay charges are in keeping with their rivals, their advantages program is clearly extra beneficiant. Allison is worried that making cuts to this system may trigger worker turnover or create challenges in future recruiting efforts.