Question.719 - Total Rewards Analysis: For this part of the assessment, you will analyze given aspects of a total rewards package from the provided case study. You will analyze qualitative and quantitative data regarding the current system and determine gaps in that system that will inform your future recommendations and revisions. D. Determine areas of misalignment, differences, and gaps present in the current benefits and compensation system, based on the external benchmarking data. What are the key areas of the current system that are misaligned with the competition? E. Based on the strengths and weaknesses of each plan, determine Emerging Pharmaceuticals rewards components that should be increased, reduced, or stay the same, and provide your rationale. F. Compare qualitative input data and quantitative analysis with the organization’s employee demographic data to determine the degree of the existing population that will be affected by the proposed changes. In other words, what is the overall impact of each proposed change?
Answer Below:
Benefits and Compensation Analysis Latissa Burgos Southern New Hemisphere University OL-620 Total Rewards Professor Bobby Burcham December 11th, 2022 Benefits and Compensation Analysis Emerging Pharmaceuticals tend to employ the practice of utilizing the generic drug and also provide support towards the co-pay model of $5.00 based on the prescription for generic drugs. While on the other hand, Medtronic tends to provide a more comprehensive prescription drug coverage model where the PPO plan offered pays 100% coverage over the generic drug, the CHP also pays 100% for certain generic drugs, and the firm pays 20% of the cost prescription considering the plan's deductibles (Emerging Pharmaceuticals and Medtronic Comparison, n.d.; Medtronic Benefits Information, n.d.). In addition, the?Earn Points?model offered to assist the employees in engaging in a Healthier Together initiative, where rewards can be earned by keeping track of themselves in order to establish a preventive approach towards healthcare, and when employees earn an adequate rate, it will be deposited to their points account in order to encourage redeem culture. The Earn point for preventive healthcare model is not implemented in the Emerging Pharmaceuticals. In Emerging Pharmaceuticals, the Dental Bi-weekly costs tend to be inappropriate in real-world employment since the primary notion of CHP with HSA is to help the employees invest their money in the way they can obtain comprehensive healthcare benefits and also help in getting tax advantages, with lower monthly premiums that encompass a larger provider network, which is entirely contradictory to the 2018 reports of Medtronic, because of the higher deductibles around $1,400 for every Employee and $2,800 for Employee including their spouse, while the PPO plan offers $500 for employees and when considering the family it is $1000 (Emerging Pharmaceuticals and Medtronic Comparison, n.d.; Medtronic Benefits Information, n.d.). In a similar context, the reports to the president refer to the regard employees have shown; the out-of-pocket maximum, including the deductibles for employees alone, is around $3,500, and for family, just spouse and children are around $7,000 to $9,000 (Emerging Pharmaceuticals and Medtronic Comparison, n.d.; Medtronic Benefits Information, n.d.). The concern for Emerging Pharmaceuticals is that over 37% of employees working force are with a spouse, who experience diverse opinions about the deductibles considering the varying healthcare plans being offered. In order to consider the salary comparison, there is a salary difference for Scientists of about $10,400 between the two companies, with Medtronic offering higher pay, which is a similar trend for all the internal stakeholders working with both companies, with Medtronic offering them higher pay. When the employees experience around 25 to 35% lesser salary when compared to the competitors, it could lead to creating a toxic work culture. The variable pay tends to be stagnant at around 8% (Emerging Pharmaceuticals and Medtronic Comparison, n.d.; Medtronic Benefits Information, n.d.). Medtronic also offers scholarship interventions in order to encourage and favor their post-secondary education interest; the scholarship ranges from $1,000 to $1,500- which is based on their active working hours of 20+ per week; Emerging Pharmaceuticals tends to have a lesser comprehensive approach in terms of coverage ranging from $2,000 to $3,500 for employees who have completed one year of service since the Medtronic offers a tuition reimbursement ranging from $3,000 to $5,250 - unlike Emerging Pharmaceuticals, the Medtronic has no tab on the working experience within the company, I believe this encourages the employees that their interest in the medical field is valued immediately after joining the firm (Emerging Pharmaceuticals and Medtronic Comparison, n.d.; Medtronic Benefits Information, n.d.). Considering the holidays, Medtronic offers better holidays that enable the employees to spend their time with their families, and also, their diverse culture seems to be respected with a ten days holiday listing, while Emerging Pharmaceuticals offer seven days of paid holidays. Considering the PTOs, Emerging Pharmaceuticals offer ten days for three or fewer years to a maximum of 18 days for ten years and after, while Medtronic offers 20 for four or fewer years, and after four years, it's 25 days PTO. Considering the 401(k), Medtronic tends to match up to 50% of 6% along with additional contribution, and in contrast, Emerging Pharmaceutical matches to a 3% considering the end of the calendar year, but also until they complete a thousand working hours, the eligibility is on hold, but the company offers additional benefits like remote work (Emerging Pharmaceuticals and Medtronic Comparison, n.d.; Medtronic Benefits Information, n.d.). In order to mitigate a comprehensive working environment, Emerging Pharmaceutical should assess its existing salary structure in accordance with their competitor; although the company is young compared to the others, it can work in order to instill an employee favorable compensation pattern in terms of PTO holidays, festive national holidays considering the diverse ethnicity count in their workforce. Emerging Pharmaceuticals can consider scholar support as in Medtronic; the firm can strike a more comprehensive balance in their employee welfare and consider establishing an employee committee to represent a majority of their concerns, such that it bridges the communication gap between the top management and their workforce. Considering the total count of employees accounting for over 12,000 under the age of 50 and a total count of 15,000 with over 14,000 working full time, the United States houses the largest number of employees following Canada, and most of the employees working as administrative support staff of 6,600 following other professionals with 4,375, clinical/scientists/research analysts 2,450, middle managers 1,200 and senior management 375, the majority of the employees under the age of 50 working full-time, it is the need of the hour to push the boundaries of the company to build a comprehensive rewards plan, extending the remote working to another sector, building an interactive rewards system, with higher variable pay structure of over 10%, since the competitor serves as a magnet of employees providing more healthier working conditions and compensation, since this is a global company, with employees working in other region, the holiday list does not include the festive holidays of other region, while forcing the employees to adhere to working standard of United States needs to be assessed by considering the employee committee of other region. References Emerging Pharmaceuticals and Medtronic Comparison. https://learn.snhu.edu/. (n.d.). Retrieved from https://learn.snhu.edu/content/enforced/1192144-IDS-403-H7189-OL-TRAD-UG.22EW2/Module%20Six%20Activity%20Guidelines%20and%20Rubric.html Medtronic Benefits Information. learn.snhu.edu. (n.d.). Retrieved from http://benefits.medtronic.com/SitePages/ChannelContentR2.aspx?ChnIDval=3&GrpIDval=16&IDval=21More Articles From Strategic Management
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