OL 620 - Module 9-1 Final Project Denisha Williams

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Denisha Williams Southern New Hampshire University Module 9-1 Final Project Submission: Benefits and Compensation Analysis and Stakeholder Presentation OL 620 X3083 Total Rewards 24TW3 Dr. Morris

Module 9-1 Final Project Submission: Benefits and Compensation Analysis and Stakeholder Presentation As your HR representative, it's time for Emerging Pharmaceuticals (EP's) to have an updated total rewards program. This plan should resolve employee issues and strengthen our competitive edge over Medtronic’s. To pinpoint areas for improvement, quantitative data such as pay and benefits, and qualitative data like employee feedback will serve as data points in comparison with Medtronic. Qualitative data plays a pivotal role in understanding the nuances and intricacies of employee experiences and perceptions within Emerging Pharmaceuticals (EP). This form of data encompasses a rich array of sources, including employee surveys, focus groups, interviews, and open-ended feedback. Through qualitative analysis, researchers gain valuable insights into the underlying motivations, attitudes, and sentiments of the workforce, shedding light on their preferences, concerns, and areas of discontent. Examining the root reasons of the issues brought up by the staff can help you understand the situation better. Furthermore, comparing the quantitative benefit and pay data from Emerging Pharmaceuticals with Medtronic's data would shed light on the benefits and drawbacks of the existing configuration. By comparing Emerging Pharmaceuticals to industry benchmarks, this comparison will highlight areas of strength and suggest areas for improvement, all backed by benchmarking data. By taking care of these components, the solutions can direct the creation of sensible suggestions and changes for Emerging Pharmaceuticals' overall rewards program. The rapid organizational growth that puts pressure on all work positions exacerbates these concerns even more. This implies that prompt action is necessary to ensure the wellbeing and engagement of employees of all ages and family configurations within the organization. Qualitative data, such as employee surveys and focus groups, provide valuable insights into the most pressing challenges faced by the workforce (Pfeffer & Lawler, 1998). By analyzing

Module 9-1 Final Project Submission: Benefits and Compensation Analysis and Stakeholder Presentation the underlying reasons behind employee concerns, we can prioritize which issues demand the most immediate attention. For instance, concerns regarding health insurance affordability and coverage can significantly impact employee well-being and potentially lead to higher absenteeism and turnover (Sirois, 2002). At Emerging Pharmaceuticals, we currently offer two Preferred Provider Organization (PPO) health plans. The Value PPO keeps bi-weekly costs lower but comes with higher out-of- pocket expenses. The Choice+ PPO offers broader network access and lower out-of-pocket costs, but with higher bi-weekly premiums. One area where we see a competitive gap is prescription drug coverage. Medtronic fully covers generic prescriptions, while our plan has a $5 co-pay. We're also aware that some employees would like more health plan options. To address these concerns, we're exploring the possibility of adding a High-Deductible Health Plan (HDHP) paired with a Health Savings Account (HSA). This could be a good fit for employees who want lower premiums and more control over their healthcare spending. HSAs offer tax advantages for both the company and employees, making them a potentially attractive option. Additionally, we're looking at implementing wellness programs like Medtronic's 'Healthier Together' initiative. By encouraging healthy lifestyles, we hope to improve employee well-being and potentially reduce overall healthcare costs. The revisions to the total rewards program should address the needs of a diverse workforce, particularly those demographics most affected by current shortcomings. For example, the case study suggests that employees aged 31-50 with families might be particularly dissatisfied with the current plan. Tailoring solutions to address their concerns, such as improved health insurance options and increased PTO, can enhance employee engagement and retention across various age groups and family structures (Guthrie, 2001).

Module 9-1 Final Project Submission: Benefits and Compensation Analysis and Stakeholder Presentation We're currently reviewing our paid time off (PTO) policy to better align with industry standards and employee needs. We noticed a difference between our program and competitor Medtronic's offering. While our current plan offers up to 18 days of PTO after ten years, it doesn't include separate sick leave, and remote work options are limited. We understand this might restrict flexibility for some employees. Medtronic's PTO policy combines vacation and sick leave into one bank, giving their employees more control over how they use their time off. Additionally, their accrual rates are based on tenure, and unused PTO can be carried over. This flexibility can significantly improve work-life balance for our employees. To address these concerns, we're exploring the possibility of revamping our PTO program. One option is to consolidate vacation and sick leave into a single PTO bank, like Medtronic's approach. This would give employees more freedom to manage their time off as needed. We're also investigating ways to potentially adjust our accrual rates to reflect tenure and potentially allow for unused PTO carryover. Implementing these changes would demonstrate our commitment to employee well-being and create a more competitive benefits package, which can help us attract and retain top talent. Quantitative data, including compensation and benefit structures, allows for comparisons with industry benchmarks, such as Medtronic. This comparison helps identify areas where EP excels and areas where improvement is necessary (Becker & Huselid, 1998). By pinpointing these gaps, we can develop targeted solutions to enhance the overall competitiveness of EP's total rewards package. The case study highlights several key areas for improvement within EP's total rewards program, particularly regarding health insurance options, retirement savings plans, and work-life balance (Pulakos & Perdue, 2012). For instance, the delayed rollout of the 401(k) plan and the lack of employer matching contributions compared to Medtronic's plan might

Module 9-1 Final Project Submission: Benefits and Compensation Analysis and Stakeholder Presentation negatively impact employee morale and long-term financial security (Gomez-Mejia, Balkin, & Cardy, 2016). A recent internal survey revealed specific concerns among a significant demographic of our workforce (37%): employees aged 31-50 with at least two children. These concerns centered on various aspects of our total rewards package, including health plan options and costs, career advancement opportunities, and paid time off. Notably, a lack of employer matching contributions within our 401(k) plan was a recurring concern. Emerging Pharmaceuticals implemented its 401(k) plan three years ago, following a period without such a program. While this delay may have impacted employee sentiment towards long-term savings, it's important to note that positive revenue trends existed during those initial years. Currently, our plan offers a 3% annual company contribution, but with a 1,000-hour eligibility requirement. Our competitor, Medtronic, offers a more robust 401(k) plan with immediate eligibility, a wider range of investment options, and a company match of 50% on the first 6% of employee contributions. This comprehensive approach likely fosters a stronger sense of security and encourages greater participation in retirement savings among their employees. To enhance our 401(k) plan's competitiveness and address employee concerns, we're considering several improvements. First, eliminating the 1,000-hour eligibility requirement would allow immediate participation upon hire, aligning us with industry standards and promoting early engagement in retirement planning. Second, implementing a matching contribution program like Medtronic's would not only incentivize increased employee contributions but also demonstrate our commitment to their long-term financial well-being. By

Module 9-1 Final Project Submission: Benefits and Compensation Analysis and Stakeholder Presentation addressing these key areas, we aim to create a more attractive total rewards package for this important demographic and the entire workforce. Investing in employee career development can significantly enhance employee engagement and retention (Noe et al., 2019). Developing mentorship programs, offering tuition reimbursement for relevant coursework, and implementing cross-training initiatives can create a culture of continuous learning and growth. By providing employees with opportunities to advance their skills and explore new career paths within the company, EP can demonstrate its commitment to employee development, leading to a more motivated and loyal workforce. By implementing these evidence-based revisions to our total rewards package, Emerging Pharmaceuticals can create a more competitive and employee-centric rewards structure. Addressing employee concerns regarding 401(k) contributions, health insurance affordability, work-life balance, and career development opportunities will strengthen employee engagement, improve retention rates, and ultimately contribute to the overall success of the company. As the HR representative at Emerging Pharmaceuticals (EP), I acknowledge the importance of career development opportunities for employee engagement and retention. While EP recognizes this value, we are a younger and smaller organization compared to competitors like Medtronic. This may limit the immediate availability of internal advancement opportunities due to our current size and growth stage. EP offers a robust tuition assistance program that covers 100% of qualifying tuition costs. Undergraduate students have a yearly maximum of $2,000, while graduate students can receive up to $3,500 ("Tuition Reimbursement", n.d.). This program allows employees to pursue relevant coursework and enhance their skillsets. While EP's tuition assistance program is competitive, Medtronic offers additional career development opportunities through scholarship

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