Mr. Fit and His Smoking Employees, Essay Example

Mr. Fit a grocery and distribution owner currently employs 500 part-time and full-time people,  whom he values and treats very well.  All employees working 25 hours a week or more receive full medical and dental benefits at no cost to them.  Mr. Fit has, however, just had a policy review; and the insurance company informed him that 35% of his employees are smokers.  As a result, his benefits costs will increase by 60% beginning next year and increase each year.  To avoid this, Mr. Fit needs a smoker ratio of less than 5%,   Mr. Fit is devastated because he knows that to get 30% of his employees to stop smoking, would be a formidable task.  However, Mr. Fit is also very aware that his business and his profits are down and, as a result, he cannot afford a 60% increase in benefit costs.  What to do?

Mr. Fit should begin by defining the problem and identifying limiting problems to his employees, 100 at a time, and ask them what they are willing to do to solve this situation. Together they must develop and analyze potential alternatives.   It would be great if they agreed to give up smoking.  If not, they may have to settle for reduced benefits, at a cost Mr. Fit can afford, or maybe they could each give up a couple of vacation and sick days each year to offset the increased costs.  The alternatives should be voted on by all employees and the top choice(s) implemented.  Once done, a control and evaluation system should be established, the results of which should periodically be relayed to employees.  Transparency and fairness are crucial.