Imagine being a leader in a small-to-mid company Assignment

Imagine being a leader in a small-to-mid company - Assignment Example e cost is not equal for all but largely depends upon lifestyle-related habits such as excessive liquor consumption, eating habits leading to obesity, smoking because such people needs additional healthcare giving rise to insurance costs. This raises the burden of employer because they need to pay at least half of the insurance cost for each employee as a contractual obligation while offering job to a prospective employee. It becomes imperative that some policy framework, in the matter related to insurance cost, needs to be prepared and implemented that distinguish employees based on their lifestyles. In a free-market economy, costs need to be shared judiciously - in line with the benefits derived by employees. Market can always adjust, while providing full healthcare benefits to workers, by providing lower wages to them so that the total cost to employer remains unchanged but that cannot be done due to minimum wage act in operation. Another alternative is to reduce the number of workers so as to keep the total wage bill constant. When wage rate is allowed to settle on its own without any external interference such as minimum wage act, these issues do not crop up. Quite often, economists have given their expert opinion that the minimum wage act creates market distortion in employment generation process harming weaker section of the society. Survival of the organization largely depends upon how fairly everyone is treated based on their contribution to the organization and the costs incurred on them. Usually, most employers do engage themselves in cost-benefit analysis while providing employment to any employee. The commercial wisdom entails that burden of health insurance cost must be shared appropriately – in proportion to the benefits garnered because lifestyle approach of each employee greatly differs. It will not be out of place to mention that giants such as IBM provides rebates to workers on insurance costs who follow healthy lifestyles and penalizes those