Benefits and Compensation Analysis: Key Insights for Improvement

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Denisha Williams Southern New Hampshire University Module 3-2 Final Project Milestone: Benefits and Compensation Analysis (Section I, Parts A-C) OL 620 X3083 Total Rewards Dr. Little

Module 3-2 Final Project Milestone: Benefits and Compensation Analysis (Section I, Parts A-C) Total Rewards Analysis: Part A - C Understanding the current benefits and compensation package requires a detailed analysis of both qualitative and quantitative data from the case study, which is necessary for an effective evaluation and revision of Emerging Pharmaceuticals' overall rewards program. Justifications for assigning priority to specific concerns over others can be offered by using qualitative data to identify the primary challenges that need to be addressed right now. Gaining a deeper grasp of the problem can be achieved by investigating the underlying causes of the difficulties raised by the employees. Moreover, contrasting Emerging Pharmaceuticals' quantitative benefit and pay data with Medtronic's data would provide insights into the advantages and disadvantages of the current setup. This comparison will help in identifying areas where Emerging Pharmaceuticals excels compared to industry benchmarks and where improvements are necessary, supported by the benchmarking data. By addressing these elements, the solutions can guide the formulation of effective recommendations and revisions for the total rewards system at Emerging Pharmaceuticals. These worries are further exacerbated by the accelerated organizational expansion that places strain on every job position. This suggests that swift action is required to guarantee employee engagement and well-being across all age groups and family arrangements inside the company. The qualitative data presented in the case study highlights several significant issues and concerns raised by employees at Emerging Pharmaceuticals, emphasizing the importance of addressing these for employee satisfaction and retention. Employees aged 31-50 with at least two children, comprising 37% of the workforce, expressed dissatisfaction with various aspects of the total rewards package. Concerns regarding health plan selections and costs, the absence of an

Module 3-2 Final Project Milestone: Benefits and Compensation Analysis (Section I, Parts A-C) employee match in the 401(k) plan, questions about career advancement opportunities, and paid time off were prevalent among this demographic. When examining the retirement benefits of Emerging Pharmaceuticals and Medtronic, it is essential to consider the structure of their 401(k) plans and the contributions made by the employers. At Emerging Pharmaceuticals, the 401(k) plan was implemented three years ago after two initial years without such a program. Despite positive revenue outcomes during those years, contributions were not retroactively applied. Emerging Pharmaceuticals currently offers an annual 3% contribution, but employees are only eligible after working 1,000 hours (“Wealth Benefits at Emerging Pharmaceuticals”, n.d.) . The employees' long-term retirement savings plans and attitudes may have been affected by the plan's delayed rollout. However, as a well- known rival, Medtronic has a solid 401(k) plan with a range of investment choices, an opportunity from day one for the company to match 50% of the first 6% of the employee's investments (“401K Plan Overview”, n.d.) , and tools to assist staff members in saving for retirement. To make its 401(k) plan more competitive in comparison to Medtronic, Emerging Pharmaceuticals should adopt a few practical changes. Initially, they could modify the qualifying requirements so that employees can join the plan as soon as they are hired, eliminating the 1,000- hour barrier. This change would encourage early retirement savings engagement and fall in line with industry standards. In addition, Emerging Pharmaceuticals could establish a matching contribution plan comparable to that of Medtronic, in which the business contributes 50% of the first 6% of employee contributions. Employees would be encouraged to increase their retirement savings through this matching program, which would also show the company's dedication to ensuring their long-term financial security.

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Module 3-2 Final Project Milestone: Benefits and Compensation Analysis (Section I, Parts A-C) Emerging Pharmaceuticals offers two health plan options: the Value Preferred Provider Plan (Value PPO) with lower bi-weekly costs but higher out-of-pocket expenses, and the Choice Plus Preferred Provider Plan (Choice+ PPO) with higher bi-weekly costs but lower out-of-pocket costs and a broader provider network. Prescription medication coverage is an area where benefits differ noticeably between the two companies. Generic prescription drugs are fully covered by Medtronic, but Emerging Pharmaceutical's prescription drug plan has a $5 co-pay. Much like the stress factors that Emerging Pharmaceutical employees addressed, Medtronic offers a "Healthier Together" program where employees pay lower monthly premiums and receive additional benefits for leading healthy lives. With an extensive network of in-network physicians, substantial benefits, and less out-of-pocket costs, Medtronic offers an appealing health plan. Emerging Pharmaceuticals should accommodate employee demands as they consider providing more health plan options. For example, a high-deductible health plan combined with a health savings account might be offered to individuals who want greater control over their medical costs. HSAs are a tax benefit to the company as well as increase employee satisfaction by having the option to have a bit more control over their healthcare fund distribution ("HSA reduce taxes", 2024). Putting in place wellness campaigns and programs to encourage staff members' health and combat illnesses may result in long-term financial savings along with enhanced staff morale (Sorn et al., 2023). Lastly, improving communication and education regarding the current health plans — including their benefits, coverage specifics, and advice on how to best utilize them — can assist staff members in making wise choices and getting the most out of their insurance. By taking these preventative steps, Emerging Pharmaceuticals can enhance its health care options while also generating a happier and healthier work environment.

Module 3-2 Final Project Milestone: Benefits and Compensation Analysis (Section I, Parts A-C) There are substantial differences in accrual rates and overall benefits between Emerging Pharmaceuticals and Medtronic's paid time off (PTO) plans. After ten years of service, Emerging Pharmaceuticals gives up to eighteen days of paid time off (PTO), but it makes no mention of sick leave ("Work-Life Benefits at Emerging Pharmaceuticals", n.d.). The company also has limited options for remote work, only allowing the data analysts and scientists to work from home. The restricted accrual and work options affect worker retention and satisfaction. Employees at Medtronic have access to a comprehensive Paid Time Off (PTO) policy that enables them to take time off for personal, sick, and vacation needs (“Your Annual PTO”, n.d.). The PTO program gives employees more freedom in scheduling their time off by combining standard vacation and sick leave into a single bank of hours. Employees accrue PTO based on their length of service and employment status, with the opportunity to carry over unused PTO hours to the following year. This approach promotes work-life balance and supports employee well-being by giving them the freedom to use their time off as needed. Medtronic also offers remote work options to its employees, allowing them to work from locations outside of the traditional office setting. This flexibility enables employees to balance their work and personal responsibilities more effectively. Emerging Pharmaceuticals can adopt a more adaptable PTO policy, comparable to Medtronic's, that consolidates sick and vacation time into a single bank of hours. This consolidation promotes a better work-life balance by giving employees more freedom to choose how much time they spend on vacation. In an effort to enhance employee benefits and comply to industry norms, Emerging Pharmaceuticals must examine and modify their accrual rates for paid time off. Enhancing the accrual rates according to tenure or length of service can encourage staff loyalty and honor sustained dedication. Furthermore, offering the chance for workers to carry

Module 3-2 Final Project Milestone: Benefits and Compensation Analysis (Section I, Parts A-C) over unused paid time off to the next year can enhance employee well-being and work-life balance. Emerging Pharmaceuticals, being a younger and smaller organization, may have more limited advancement opportunities due to its size and growth stage. Employees are offered tuition assistance that allow for coverage of 100% of tuition. Undergrads have a maximum amount of $2000 yearly and $3500 for employees enrolled in graduate school (“Tuition Reimbursement”, n.d.). Medtronic provides ample opportunities for career advancement through their scholarship programs and tuition assistance. Employee’s children are eligible to receive rewards between $500 - $1500 (“scholarship program”, n.d.). Employees at Medtronic have acc ess to tuition reimbursement for 100% of the tuition costs with a max of $3000 yearly at the undergraduate level and $5250 at the graduate levels. The company values internal talent and encourages employees to pursue growth opportunities through cross-functional projects, leadership programs, and performance evaluations that recognize and reward achievements. With a focus on talent development and succession planning, Medtronic fosters a culture of continuous learning and professional advancement for its employees. There are several ways that Emerging Pharmaceuticals can boost career advancement opportunities for their employees. Primarily, to encourage further education and skill development, we can implement a scholarship program for both employees and their children, inspired by Medtronic. Financial aid for undergraduate and graduate degrees may be available under this program, with funding caps that may be raised to equal or exceed those provided by Medtronic. Emerging Pharmaceuticals can also put in place a structured program for talent development that includes leadership training, cross-functional projects, and performance

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Module 3-2 Final Project Milestone: Benefits and Compensation Analysis (Section I, Parts A-C) reviews to praise and reward accomplishments. By funding these programs, Emerging Pharmaceuticals may emulate Medtronic's culture of lifelong learning and professional development, which will contribute to staff retention and happiness while also advancing the organization's long-term success.

Module 3-2 Final Project Milestone: Benefits and Compensation Analysis (Section I, Parts A-C) References: Emerging Pharmaceuticals and Medtronic Comparison. (n.d). SNHU. https://learn.snhu.edu/content/enforced/1509625-OL-620-X3083-OL-TRAD GR.24TW3/Course%20Documents/OL%20620%20Emerging%20Pharmaceuticals%20 ase%20Study.pdf . How employers benefit from offering an HSA. (2024). First dollar. https://www.firstdollar.com/resources/employer-benefits-from hsa#:~:text=HSAs%20also%20have%20significant%20tax,the%20employer%20or%20 he%20employee). Medtronic Benefit Information. (n.d.). Medtronic . http://benefits.medtronic.com/SitePages/ChannelContentR2.aspx?ChnIDval=3&GrpIDv l=16&IDval=21 . Sorn, M.K., Fienena, A.R.L., Ali, Y., Rafay, M. and Fu, G.H. (2023). The Effectiveness of Compensation in Maintaining Employee Retention. Open Access Library Journal , 10 , 14. doi: 10.4236/oalib.1110394 .

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