This case study examines potential changes to Carter Cleaning Company's employee benefits plan. Currently, the company only offers legally required benefits like unemployment and workers' compensation. Jenifer wants to study if providing health insurance could reduce turnover like at similar companies. She is also concerned about the lack of a formal policy for vacation, sick leave, or paid days off. Jenifer wonders if a daycare center for employees' children would be beneficial as many have no childcare options. The document outlines potential solutions for new policies on time off benefits and analyses the pros and cons of offering health insurance and establishing an onsite daycare.

2. A CASE STUDY ON
PREPARED BY
MAHIBULLA & TAWHID
The new benefit plan Carter cleaning company

3. CASE SUMMARY
Carter cleaning centers has traditionally provided only legislatively required benefits for employees
these include participation in the state’s unemployment compensation program, social security,
and workers compensation. The principals of the firm – Jack, Jenifer and their family have
individual family supplied health and life insurance.
Now, Jenifer can see several potential problems with the company’s policies regarding benefits
and services. One is turnover. She wants to do a study to determine whether similar companies’
experiences with providing health and life insurance benefits suggest they enable these firms to
reduce employee turnover and perhaps pay lower wages. Jenifer is also concerned with the fact
that her company has no formal policy regarding vacation or paid days off or sick leave.
She also wonders whether it would be advisable to establish some type of day care center for the
employee’s children. She knows that many of the employee’s children have either no place to go
during the day (they are preschoolers) or have no place to go after school, and she wonders
whether a benefit such as day care would be in the best interests of the company

4. QUESTIONS
A. Drawing up a policy statement regarding vacations, sick leave, and paid days off
for carter cleaning centers.
B. What are the advantages and disadvantages to carter cleaning centers of
providing its employees with health, hospitalization, and life insurance program?
C. Is it fruitful establishing some type of day care center for the carter cleaning
employees? Why or why not?

5. SOLUTION NO.1: POLICY STATEMENT REGARDING VACATIONS, SICK LEAVE, AND PAID DAYS OFF FOR CARTER
CLEANING CENTERS.
Weekly Holiday: Two holidays (Friday & Saturday) per week for the employees.
Annual Holiday: These holidays are basically the government holidays. It is determined based
on government holidays.
Sick Leave: 14 days sick leave with pay is provided to the staffs of carter cleaning company
each and every year.
Maternity Leave: carter cleaning company should provide 6 months with pay maternity leave to
its female staffs.
Paternity Leave: Carter cleaning company should provide 6 days paternity leave at a stretch.
Accidental Leave: Every employee can take this leave due to accident in work place, in case of
hospitalized because of accident or surgery issues. Carter cleaning company should give 21
days with pay accidental leave for accidental or surgical issue to its staff.

6. SOLUTION NO.2: ADVANTAGES AND DISADVANTAGES TO CARTER CLEANING CENTERS OF
PROVIDING ITS EMPLOYEES WITH HEALTH, HOSPITALIZATION, AND LIFE INSURANCE PROGRAM.
Advantages:
I. Reducing employee turnover
II. Lower wages
III. Increasing job satisfaction
IV. Assurance of employee’s health security
V. Increased Productivity
VI. Greater employee engagement
VII. Reduction in absenteeism

7. DISADVANTAGES
I. Too expensive for the employees to fit into
II. Difficult to keep everyone happy
III. Management of budget becomes difficult
IV. Difficult to maintain

8. We would advise for the carter cleaning company to establish a day care center because of some
important issues these are following:
I. Many of the employee’s children have no place to go during the day
II. Most of the children are preschoolers
III. It will helps employees to give full concentration to their work and feel secured about their
children.
Solution no.3 establishing some type of day care center for the carter cleaning employees