Compensation 6th Edition by Jerry Newman,Margaret Yap, Bruce Gerhart

Exercise 1

Your CEO is living proof that a little bit of knowledge is a dangerous thing. He just read in the Globe and Mail that employee benefits cost, on average, 38 percent of payroll. To save money, he suggests that the company fire its two benefits administrators, do away with all benefits, and give employees a 38 percent pay raise. What arguments could you provide to persuade the CEO that this is not a good idea?