TOTAL REWARD SYSTEM..edited

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Nov 24, 2024

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INTRODUCTION The total reward system is a package comprising various kinds of rewards that organizations provide to their employees to enhance job satisfaction. The reward system goes beyond monetary compensation and covers benefits for qualified employees, such as personal time off, health care, vacations, and retirement plans (Ducie, 2019). This paper, therefore, seeks to analyze the total reward system for Emerging pharmaceuticals located on the West Coast of the United States and compare it with Medtronic, a competing firm in the same industry. The analysis assesses the quantitative and qualitative data for Emerging pharmaceuticals, comparing the compensation and benefits models. Besides, the paper will identify existing gaps in the company and suggest possible recommendations to be implemented in order to improve the Total Reward system. All the items that form the basis of the discussion are structured in three parts, beginning with parts A to C. PART A: QUALITATIVE DATA REVIEW Emerging pharmaceuticals were established in 2011 by private investors and have exponentially grown over the years since their inception. However, the company has been experiencing tremendous challenges that have led to high turnover, with employees lasting only two years and later transferring their services to Medtronic. To this effect, the human resource manager sought to investigate the underlying employee welfare issues to improve the working terms and conditions. Employees between the ages of 31 and 50 with two children at the minimum were interrogated, and some of the major issues raised were pointed to the company's 401(k) plan that did not match the needs of the employees. Besides, the employees raised concerns regarding the work hours, career paths, and advancement opportunities. Some employees stated they had no

time for their families since they worked long hours, got to work very early, left late, and found their children asleep (Yang, 2020). Again, the schedule for paid-off-time could be more favorable since it goes for 18 days only after ten years of service. Most devastating is that the time off schedule does not have a sick off time. Additionally, the employees complained about their difficulties regarding career advancement and securing top opportunities. The company has low reimbursement fees for tuition, making it challenging for employees to advance in their careers. Similarly, the company's top management requires qualifications of degree level, which makes it difficult for employees to grab top management opportunities since they cannot advance in their studies due to low reimbursement tuition fees. Lastly, the employees complained about the low wages and remuneration and the unmatching retirement plans provided by the company compared to other companies in the industry. As a result, most people opt to leave for well-paying companies like Medtronic. PART B: KEY ISSUES TO BE TARGETED Regarding the feedback received from the employees, the human resource manager merged all the responses into three main concerns: health issues, work-related concerns, and wealth. First, the employees would prefer something other than the health insurance scheme provided by the company. This is because their health insurance coverage is limited only to them and not their households. This means that emerging pharmaceutical employees cannot use their health insurance to cover their spouse, and if that happens, they are required to pay an extra fifty dollars. Secondly, the working terms and conditions could be more favorable to most employees, beginning with low payments, paid-off time schedules with no sick-off time, and unnoticed extra unrewarded efforts. Lastly, regarding wealth, employees find it challenging to save and grow

themselves due to low wages. Again, the retirement plan for the company does not match the efforts put in over the years in service, making it difficult for employees to have a secure life after retirement. The three main issues, therefore, form the central part of the company's gaps that need to be addressed to improve the work morale of employees and consequently attain high retention levels. This is why the concerns are highly prioritized since a company can only grow by satisfying the needs of the human resources who act as the backbone of all achievements. PART C: QUANTITATIVE DATA ANALYSIS Emerging Pharmaceuticals provides its employees with two health plans: the VPPO, Value Preferred Provider Plan, and Choice Plus Vale Preferred Provider Plan ( Choice+PPO). The two plans have different packages for various categories of employees. Similarly, Medtronic has a PPO plan and others like CHP and an HSA, which emerging pharmaceuticals do not. The coverage levels for emerging pharmaceuticals in their plans are three, while Medtronic has four coverage levels. The rates for each level for the two companies also differ, where Medtronic has a higher rate than emerging pharmaceuticals. The coverage levels for pharmaceuticals include the employee as the primary person, paying a rate of $57.50 and $86 for VPPO and Choice+PPO, respectively. The second level has the employee plus one person with rates of $157.50 and 141.50. The third category has the employer plus more than one person, with rates ranging from $257.50 to $500. Conversely, Medtronic has four levels, with the first level having the employee alone paying a rate of $500, the second level is the employee plus spouse, paying a rate of $750, the third category has the employee plus children, rating at $750 and the last level covers the whole family of the employee, rating at $1250 (Berenbrok, 2022). To this effect, emerging pharmaceuticals offer two plans with only three coverage levels, while Medtronic offers one package with four.

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Nevertheless, the work benefits for employees at Emerging Pharmaceuticals and Medtronic differ. In emerging pharmaceuticals, paid off-time for employees who have been in service for three years or less is ten days, those who serve after three years get 12 days, and those who serve after six years get 15 days, and lastly, employees who serve ten years and above get 18 paid-off days. On the flip side, Medtronic offers 20 paid time off to employees who serve for four years or less, 25 paid time off for those who serve after four years, and 30 days for employees who serve after 14 years. Lastly, 35 days is offered to employees who serve after 24 years. In addition to paid-off time, emerging pharmaceuticals pay their employees during holidays such as Labor Day, Christmas, Memorial Day, and New Year's Day. Medtronic has more paid holidays than emerging pharmaceuticals. Finally, the tuition reimbursement fee for essential pharmaceuticals is 100% for up to $2000 for the undergraduate program and $3500 for postgraduate. On the other hand, Medtronic allows 100% for up to $3000 annually for undergraduate and $5250 for graduate programs. Conclusion The total reward system is a critical element of any organization, which should be embraced according to the goals of the organization in order to achieve desired results and growth. Human resources play a significant role in firms and industries; therefore, companies should strive to uphold their rights and well-being. Complaints that may arise should be dealt with instantly to avoid further problems. A goal-oriented company like Emerging Pharmaceuticals should, therefore, consider the concerns raised by its employees and make necessary adjustments to prevent further damage. Based on the benchmark with Medtronic, emerging pharmaceuticals should put in place resources to improve their working terms and conditions to prevent employee turnover and achieve retention that will consequently result in growth due to consistency.

References. Ducie, Y. (2019). The Evolution and Future of Total Rewards as a Remuneration Strategy. Berenbrok, L. A., Tang, S., Gabriel, N., Guo, J., Sharareh, N., Patel, N., ... & Hernandez, I. (2022). Access to community pharmacies: A nationwide geographic information systems cross- sectional analysis. Journal of the American Pharmacists Association , 62 (6), 1816-1822. Yang, L., Zhou, Y., Shi, B., Meng, J., He, B., Yang, H., ... & Wang, T. (2020). Anthropogenic impacts on the contamination of pharmaceuticals and personal care products (PPCPs) in the coastal environments of the Yellow and Bohai seas. Environment International , 135 , 105306.

TOTAL REWARD SYSTEM..edited

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