What are the issue and conclusion?
The issue discussed in the memorandum is about health care insurance and what are the actions and policies that the board of directors of Penn- Mart should implement in order to mitigate the increase in costs of their employees’ healthcare benefits. Throughout the memo Salvador Monella the Human Resources SVP lays out many arguments to defend the study and his position which make this is a perceptive issue according to (BOOK) “Perceptive issues are those that raise questions about what we should do or what is tight or wrong, good or bad..” page 25. Salvador’s conclusion is announced in the first paragraph of the memo with the indicative word “in short”; he states in his conclusion that Penn-Mart needs to create and implement a mandatory health program composed of health screenings that will promote preventive care, this strategy will increase associates’ awareness about their health, enable associates to be more proactive about their health issues which will result overall to a decrease of the Penn-Mart ramping health care cost. because employees that do not comply to the term of the proposed mandatory health program will
What are the reasons?
There are many reasons provided in the memorandum by Salvador to explain and justify his stands on rising health care issue. Salvador uses evidence to support his conclusion; some of the evidence provided in the memorandum is from underwriter’s data that illustrate the significant impact on health care cost by specifics groups such as smokers and other associates neither interested nor proactive in health care cost. The author also uses the average tenure as an evidence to support the correlation between the aging workforce and the increase in health care. As a result of his internal research it is also proven that associates are more interested in working for Penn – Mart more because of