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Burr Incorporated spends approximately 20% of its budget on employee

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Burr Incorporated spends approximately 20% of its budget on employee [#permalink]

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New post 20 Aug 2016, 16:34
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Burr Incorporated spends approximately 20% of its budget on employee benefits. In an effort to curb costs, Human Resources has decided to run a pilot program with volunteer employees, in which volunteers received a 5% raise in pay for a 25% reduction in benefits. During the first year of the pilot program, the volunteers’ productivity matched or exceeded their previous performance.

Which of the following, if true, would provide the strongest justification for Burr Inc. not to implement the pilot program company-wide?

(A) 55% of the employees who chose to take part in the pilot program were under the age of 30 and so were less worried about retirement benefits being cut.

(B) Other companies that have implemented similar programs successfully have all been much smaller than Burr Inc.

(C) The pilot program volunteers were among the employees in Burr Inc. who were least likely to take sick days.

(D) Promotions amongst those in the volunteer group were contingent upon their performance while in this group.

(E) Alternatives to cutting benefits might be able to save Burr Inc. more than 5% of what the company pays in salary and benefits.
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Re: Burr Incorporated spends approximately 20% of its budget on employee [#permalink]

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New post 20 Aug 2016, 23:55
DrAB wrote:
Burr Incorporated spends approximately 20% of its budget on employee benefits. In an effort to curb costs, Human Resources has decided to run a pilot program with volunteer employees, in which volunteers received a 5% raise in pay for a 25% reduction in benefits. During the first year of the pilot program, the volunteers’ productivity matched or exceeded their previous performance.

Which of the following, if true, would provide the strongest justification for Burr Inc. not to implement the pilot program company-wide?

(A) 55% of the employees who chose to take part in the pilot program were under the age of 30 and so were less worried about retirement benefits being cut.

(B) Other companies that have implemented similar programs successfully have all been much smaller than Burr Inc.

(C) The pilot program volunteers were among the employees in Burr Inc. who were least likely to take sick days.

(D) Promotions amongst those in the volunteer group were contingent upon their performance while in this group.

(E) Alternatives to cutting benefits might be able to save Burr Inc. more than 5% of what the company pays in salary and benefits.


Pilot Program : A 5% raise in pay for a 25% reduction in benefits.

Important Premise : During the first year of the pilot program, the volunteers’ productivity matched or exceeded their previous performance.

We need to provide some information on the basis of which we can conclude the Pilot program is not going to be beneficial.

(A) 55% of the employees who chose to take part in the pilot program were under the age of 30 and so were less worried about retirement benefits being cut. --> No information on whether the plan would be a success.

(B) Other companies that have implemented similar programs successfully have all been much smaller than Burr Inc. --> Other companies. Irrelevant.

(C) The pilot program volunteers were among the employees in Burr Inc. who were least likely to take sick days. --> How does that matter? Argument never said there is any change in the benefits or Payscale for the ones taking more sick leave or not.

(D) Promotions amongst those in the volunteer group were contingent upon their performance while in this group. --> Great. Most are exceeding or matching their productivity. SO, promotion chances are great , thus already an increase in salary and 5% hike could mean alot. Hence, the answer.

(E) Alternatives to cutting benefits might be able to save Burr Inc. more than 5% of what the company pays in salary and benefits. --> We have to focus on the pilot program only. Irrelevant.
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Re: Burr Incorporated spends approximately 20% of its budget on employee [#permalink]

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New post 12 Jan 2018, 05:15
incentives for volunteers: + 5% in pay - a 25% benefits
because of D, now incentives for volunteers: + 5% in pay - a 25% benefits + Promotions (based on performances)
The argument already states that performances are positive.
Re: Burr Incorporated spends approximately 20% of its budget on employee   [#permalink] 12 Jan 2018, 05:15
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Burr Incorporated spends approximately 20% of its budget on employee

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