Question

Which of the following, if true, undermines the argument that Orion should offer its employees a cafeteria plan?

1) A survey of Orion employees indicates that the majority of employees are very satisfied with the firm's current benefit offerings.
2) Orion experiences very few workers' compensation claims each year as compared to similarly sized businesses in the Atlanta area.
3) Orion employee surveys indicate that most employees are interested in either 401(k) plans or Roth IRAs as methods of saving for retirement.
4) Orion uses an employee leasing firm to handle recruiting, hiring, and benefits administration.

Answer 1

Option 3) Orion employee surveys indicate that most employees are interested in either 401(k) plans or Roth IRAs as methods of saving for retirement undermines the argument that Orion should offer its employees a cafeteria plan.

Step-by-step explanation:

The argument that Orion should offer its employees a cafeteria plan can be undermined by several factors. Out of the given options, the one that undermines this argument is Option 3) Orion employee surveys indicate that most employees are interested in either 401(k) plans or Roth IRAs as methods of saving for retirement.

If the majority of employees are already interested in 401(k) plans or Roth IRAs, offering a cafeteria plan may not align with their preferences and needs. Additionally, cafeteria plans generally provide a range of benefits, including health insurance, and if employees are already satisfied with the current benefit offerings (Option 1), the need for a cafeteria plan may not be necessary.

Therefore, the survey indicating employee interest in 401(k) plans or Roth IRAs as retirement savings methods undermines the argument for offering a cafeteria plan.