7.1 Milestone 3_ Final Project _ Revisions (Section II)

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Milestone 3: Final Project: Revisions (Section II) 1 Total Rewards Milestone 3 Final Project: Revisions Section II Diana Nunez November 3, 2023

Milestone 3: Final Project: Revisions (Section II) 2 Revisions I believe that the Emerging Pharmaceutical Company should rethink how they evaluate their rewards program. At the moment, there appears not to be much emphasis on rewarding the committed, productive employees or offering incentives. Emerging Pharmaceuticals must make it clear to employees what their career prospects are within the company and give them strong incentives to stick with it for the long run. Recommendations When assessing Emerging Pharmaceuticals' benefits package, the pay scale is the primary issue that has to be improved. Employee pay at the company is currently much less than what the market will allow. Employee retention is negatively impacted when pay is below the market norm because underpaid workers may feel underappreciated and may perform worse. Long-term, this can result in the departure of productive employees. I propose that Emerging Pharmaceuticals put in place a pay system that is based on performance. This strategy would reward staff for exceeding expectations and recognizing great achievement with salary increases. Also, it would improve retention of employees because they would see chances for salary growth inside the organization. A system like this would match an employee's output to the organization's total output. When employees perform well in their positions, they have a favorable impact on the overall operation of the business, which benefits both parties. As stated by Mosca (2021) “Your employees are more productive when they are more engaged. By doing this, your business’s profits increase and you may meet your revenue targets.

Milestone 3: Final Project: Revisions (Section II) 3 These days, people are less motivated by money alone and frequently feel jaded and like cogs in the mill in their places of employment. If you present them with a worthwhile assignment, they will all arrive energized and prepared.” (Mossca, 2015). By changing its Paid Time Off (PTO) policy, Emerging Pharmaceuticals can increase its competitiveness. It is vital to maintain a healthy work-life balance, especially in light of the demographics of the workforce. In my opinion, the organization should be more aware of the situations surrounding employees who turn ten years old. Ten years of employment is a significant accomplishment and should be honored as a significant turning point. But the current PTO policy only allows for ten years of leave, effectively telling employees that no matter how long they work for the company, they would not be eligible for any more time off. I suggest gradually increasing PTO at the 15, 20, and 25-year intervals in order to address this. This strategy would be a thank-you gift for devoted, long-term workers. Furthermore, workers ought to be permitted to carry over a maximum of 5 paid time off in a given calendar year. Giving dedicated employees more time off would allow them to recover and take the required breaks, which would ultimately boost their output during working hours. As Rook stated, most individuals are unaware of the significant effects that time off has on the economy as a whole, employment growth, and individual salaries (Rook, 2019). While it might seem on paper that offering more paid time off would result in higher costs, it's important to remember that higher employee morale and engagement could lead to more productive work being completed, thus offsetting the higher costs. Employee satisfaction would increase and performance levels would remain stable as a result. Performance improvements, higher morale, and less of an effect on Emerging Pharmaceuticals' bottom line are envisaged.

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Milestone 3: Final Project: Revisions (Section II) 4 Emerging Pharmaceuticals should think about updating their 401(k) plan and adding a 3% match on employee contributions in order to improve staff retention. Employees are more inclined to stay with the company until they reach retirement age if they can see themselves retiring from it. Increased job satisfaction and a sense of loyalty are fostered by this, which eventually leads to better job performance. Lastly, I propose that Emerging Pharmaceuticals include a wellness program in their array of health benefits. Ensuring the health and well-being of employees ought to be a top priority. Involving employees in the conversation while making changes to the benefits plan aids in striking a balance between the cost of the plan and its employee appeal (Martocchio, 2019). This feature would encourage a healthy lifestyle by giving employees more financial freedom for their healthcare plans, educating them about the options available, and giving them the authority to manage their plans. Adding a wellness program can also help offset the $25 monthly premium that comes with adding a spouse to the plan. Welfare practices are benefits that go above and beyond what is needed by law or industry to provide for the comfort, knowledge, and social well-being of employees (Martocchio, 2019). Traditionally, businesses have used these procedures to encourage efficient administration and increase employee output. Constraints The suggested modifications to Emerging Pharmaceuticals' overall incentives program may be hindered by legal, administrative, and financial limitations. One obvious issue for Emerging Pharmaceuticals in determining worker compensation is financial limitations. In order to resolve this, I advise the company to create precise job descriptions that match responsibilities to appropriate pay. Emerging Pharmaceuticals may be able to lessen some of its financial

Milestone 3: Final Project: Revisions (Section II) 5 limitations by making sure that compensation is commensurate with job requirements and performance while providing room for growth and development. Legal restrictions could also be a problem. The business should make sure that any compensation raises are only dependent on performance and strictly follow this approach in order to get over these challenges. In addition, performance management-related procedural restrictions might also be taken into account. Making sure that performance fits job descriptions is essential when modifying employee wages to match market norms. If not, the company ought to have a plan in place for performance management to handle poor performance. Financial Cost Emerging Pharmaceuticals' main financial commitment will be to implement a merit- based compensation structure, which the company will completely finance. The organization will reward exceptional achievement with pay increases under a merit-based system. A performance management system and job descriptions will be required to properly manage this process. Emerging Pharmaceuticals will fully fund this benefit when matching 3% of an employee's 401(k) contribution. However, I recommend giving employees' ownership of the contributed funds a 5-year vesting period before granting them complete ownership. This more lengthy vesting period encourages employees to stay with the company longer and provides them with an extra incentive to do so. By using this strategy, the company may reward and assist devoted workers, setting them up for a prosperous retirement. It's crucial to remember that this adjustment will raise the organization's indirect compensation expenses.

Milestone 3: Final Project: Revisions (Section II) 6 There will be a cost-sharing structure when introducing a wellness program, with the employer paying 50% and the employees covering the remaining 50%. The wellness program will be started by Emerging Pharmaceuticals, but it will be up to each employee to fulfill the standards and make sure it runs well. In addition, I would advise Emerging Pharmaceuticals to monitor and evaluate the annual healthcare costs incurred by each employee. This metric will assist in determining the average cost of healthcare for each employee, offering the company insightful information. With employees who have worked with Emerging Pharmaceuticals for more than ten years, the change to the PTO plan will be thoroughly funded. The organization won't be significantly impacted by the increase in vacation time while keeping the same workload. Rather, it will motivate staff members to use efficient time management techniques and improve their workdays. The idea behind this initiative is that when a company invests resources to recognize employees and show them how much it values their contributions, they are more likely to become productive, dependable team members. This is true even though the majority of these recommendations require an upfront investment from Emerging Pharmaceuticals. This should therefore result in higher staff retention and lower recruiting and training costs. Ideally, the business would be able to set aside money for these suggested proposals' execution due to these cost reductions.

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Milestone 3: Final Project: Revisions (Section II) 7 References Martocchio, J. J. (2019). Strategic Compensation (10th ed.). Pearson Education (US). https://mbsdirect.vitalsource.com/books/9780135175910 Mosca, L. (2021 June 7). 6 Reasons Why Pay-For_Performance Is A Game Changer. Forbes. https://www.forbes.com/sites/louismosca/2021/06/07/6-reasons-why-pay-for-performance-is-a- game-changer/?sh=64fa84c271b7 Rook, D. (2019 June 3). The Importance of Paid Time Off (PTO). HUD. https://www.griffinbenefits.com/blog/the-importance-of-paid-time-off-as-an-employee-benefit SNHU Medtronic. (2020). 2018 Medtronic Benefits Information . For use in OL 620 Total Rewards comparison with the supplied case study data. SNHU Emerging. (2020). Emerging Pharmaceuticals and Medtronics Comparison Study . SNHU OL-620 Total Rewards Course Documentation.

7.1 Milestone 3_ Final Project _ Revisions (Section II)

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