Emerging Pharmaceuticals is a successful firm based on the West Coast of the United States. However, it has been facing strong competition from Medtronic Pharmaceuticals. Significantly, the company has been losing talents to its competitor. As such, it is vital to assess and review the company’s current total rewards system to determine necessary changes that will ensure employee retention and cost controls. This paper compares its reward system with that of Medtronic and suggests appropriate changes.
Table of Contents
1. Part D: Misalignment, differences, and gaps
2. Part E: Emerging Pharmaceuticals rewards components that should be increased, reduced, or stay the same
3. Part F: Population affected
Research Objectives and Themes
The primary objective of this analysis is to evaluate and compare the total rewards system of Emerging Pharmaceuticals with that of its competitor, Medtronic Pharmaceuticals, to identify critical gaps and propose structural improvements that enhance employee retention and manage costs.
- Identification of misalignments in health plans and 401(K) structures.
- Analysis of employee turnover drivers, specifically regarding work-life balance and career development.
- Strategic recommendations for adjusting reward components such as retirement contributions and family health coverage.
- Evaluation of the impact of proposed changes on different professional demographics within the firm.
Excerpt from the Book
Part D: Misalignment, differences, and gaps
Emerging Pharmaceuticals reward system is a multifaceted strategy that emphasizes on the employee value proposition. It encompasses exposing the employees to challenging work, creating opportunities for career development and offering competitive pay. Despite this robust reward system, the firm’s employees are concerned about health plan costs and selections, 401(K) plan issues, working hours and inadequate career development opportunities. Emerging Pharmaceuticals has two health plan alternatives for its employees i.e. value preferred provider plan (Value PPO), and the Choice plus Preferred Provider Plan (Choice+ PPO). The former has higher out-of-pocket costs and lower bi-weekly costs than the latter. The inconsistency in health plans is a concern for some employees. In addition, the company did not a 401(K) for many years. When the plan was introduced three years ago, to contributions did not include previous years.
While the company have work-life balance benefits such as paid leave, holidays, minimal remote opportunities and tuition assistance, the plan is inadequate to address the long hours of work and lack of career growth opportunities (Anthony & Weide, 2015). As a result, employees leave Emerging Pharmaceuticals for better health plan, 401(K) and work-life balance opportunities. By comparison, Medtronic Pharmaceuticals have a more comprehensive reward system for the employees. Some of the benefits available to Medtronic employees include grand prize travel package, custom NIKE shoes and fitness packages for selected employees every month. The company’s healthcare plan includes a dental care plan. Also, Medtronic have a 401(K) plan which is consistent among all the employees. It also includes a stock purchase plan. These issues are responsible for the exodus of employees from Emerging Pharmaceuticals to Medtronic. In this case, Emerging Pharmaceuticals must do more to enhance their reward system to minimise the employee attrition rate.
Summary of Chapters
Part D: Misalignment, differences, and gaps: This section identifies current deficiencies in Emerging Pharmaceuticals' reward system, specifically regarding health plan inconsistency, 401(K) history, and inadequate work-life balance compared to Medtronic.
Part E: Emerging Pharmaceuticals rewards components that should be increased, reduced, or stay the same: This chapter outlines proposed strategic adjustments, suggesting that while base pay is sufficient, the company must increase career development opportunities and retirement plan contributions to ensure financial security for staff.
Part F: Population affected: This section analyzes how the proposed changes will specifically benefit the younger and highly ambitious workforce, aiming to reduce turnover among the company's 15,000 full-time employees.
Keywords
Total Rewards, Employee Retention, Emerging Pharmaceuticals, Medtronic Pharmaceuticals, Health Plans, 401(K) Plan, Work-Life Balance, Career Development, Employee Attrition, Financial Security, Benefit Packages, Organizational Support, Human Resource Management, Employee Motivation, Compensation Strategy.
Frequently Asked Questions
What is the core purpose of this analysis?
The analysis aims to identify the reasons behind employee attrition at Emerging Pharmaceuticals by comparing their existing rewards system to that of their competitor, Medtronic, and suggesting improvements.
What are the primary thematic areas covered?
The study covers employee health benefit structures, retirement savings (401(K) plans), career advancement opportunities, and work-life balance initiatives.
What is the central research question?
The research seeks to determine which changes in the total rewards system are necessary to mitigate employee turnover and ensure cost control effectively.
Which scientific methodology is utilized?
The paper employs a comparative case study approach, utilizing internal organizational data and external benchmarks to justify strategic recommendations.
What is the central focus of the main body?
The main body examines current gaps in employee benefits, proposes specific adjustments to existing reward components, and assesses the demographic impact of these changes.
Which keywords best describe this paper?
Key terms include total rewards, employee retention, 401(K) plans, organizational support, and employee motivation.
Why are employees currently leaving Emerging Pharmaceuticals?
Employees are leaving primarily due to inconsistent and inadequate health plans, limited career growth opportunities, and poor work-life balance.
How does Medtronic’s rewards system compare to Emerging Pharmaceuticals?
Medtronic offers a more comprehensive system, including consistent 401(K) plans, stock purchase options, and creative perks like travel packages and lifestyle benefits.
What specific recommendation is made regarding retirement contributions?
The paper recommends increasing the employer contribution rate from the current 1.75% to approximately 2% of pre-tax income to improve financial security.
Which employee segments are most affected by the proposed changes?
The younger and more ambitious employees, specifically those between the ages of 30 and 50, are identified as the most impacted and the primary target for retention policies.
- Quote paper
- Mourine Atsien (Author), Total Reward Analysis, Munich, GRIN Verlag, https://www.grin.com/document/1326041
