Type of benefits system
Moka House, a coffee “cooperative” has 3 locations in Victoria (Cook Street Village, Fort Street and Fisherman’s Wharf). It also has a unique business model which is described as:
…the Moka House locations have formed a cooperative, where each owner can meet the individual needs of the neighborhood but yet can still benefit from working together as a group. No two neighborhoods are the same and nor should your ‘local” be either. (MokaHouse.com, 2018)
Each location has an owner and 14-18 employees. Employees are both full and part- time, and are primarily students and young people. The Moka House locations each have a number of long-term employees. Employees are experiencing the common issues with jobs that require standing for long periods of time, dealing with hot items. dealing with challenging customers.
Scenario
The 3 Moka House owners are looking at offering a benefits plan to their employees. One owner thinks the best choice is a fixed benefits system: another owner wants a flexible benefits system. The third owner has never had a benefits plan and doesn’t know what to think. If you were providing advice on designing indirect pay plans to the owners, what would you recommend and why?
Questions
1. Which type of benefits system do you recommend? Provide a rationale for your recommendation. Be specific.
2. The owners can’t afford to include every possible benefit. Which benefits do you think Moka House should consider including in their plan? Prepare a preliminary list of benefits and a rationale for each for the owners to review.
3. Assume the owners agree with your preliminary list of benefits. How do you recommend the owners proceed in order to finalize the specific benefits to include in their plan? Include your rationale for your recommended approach. Ensure your recommendations are based on what you’ve learned about connecting pay to the organization’s goals and compensation strategy and properly designed indirect pay plans.
ANSWER
- Type of benefits system recommended and rationale:
- Preliminary list of benefits and rationale for each benefit:
3. Recommended approach for the owners to finalize the specific benefits in their plan and rationale:
