Raj, the director of benefits for a major manufacturing firm, wants to save costs by moving to a cafeteria plan of flexible benefits. Advise him as an HR benefits expert.

A. Don't do it. You won't really save any money.
B. Offer flexible spending accounts for child care and medical expenses.
C. Make sure that employees can select exactly what they had before with no additional out-of-pocket expenses.
D. Offer free desserts in the cafeteria at least one day a week.
E. Let employees choose from a variety of no more than 20 options. Increase their out-of-pocket expenditures by no more than 7% a year.

Raj, as the director of benefits, can consider implementing a cafeteria plan of flexible benefits to offer employees choices while aiming to save costs. To ensure cost savings and employee satisfaction, focus on offering flexible spending accounts for child care and medical expenses and allowing employees to maintain their existing benefits with minimal additional expenses. Additionally, negotiating with service providers for lower rates and optimizing existing services can contribute to cost-efficiency.

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