Research & Recommendation Report

FOSSIL GROUP

Promoting Benefits

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Table of Contents

Executive

Summary……………………………………………………..…3

Introductio…...………………………………………………..3-5

Proven Research…………………..………………………….5-6

What Others Employees Offer……………………….……….6-7

Fossil Benefits…………………………………………………..7

Increating Brand Appeal…………………………..……...…..8-9

Conclusion……………………………………………….…….9

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Executive Summary

Research has proven many individuals will take a pay cut for better benefits and work life balance. Taken

that information we know employees care about their own well being and the work they put into a

company they believe in. Heavy consideration placed into health insurance, vacation time, flexible

schedule, and student loan assistance are highly important categories applicants look for in a company.

Fossil offers competitive benefits for new and existing employees. Investing in “benefits in kind” is

obviously costly to Fossil however the company will greatly benefit more by investing in its employees

longevity. One of the effects of offering better benefits is the increase in employee productivity. Although

Fossil offers a 50% tuition reimbursement for employees pursuing higher education some companies

already pay for 75% or 100% of an their employees tuition. Knowing that these workers will receive

compensation by staying at their jobs and working diligently allows for deeper brand loyalty. This in turn

increases a company’s productivity, sales revenues, customer retention, company appeal, and employee

happiness. Fossil needs to be even more competitive in its benefits in order to stay relevant in the retail

market. Fossil needs to act now rather than later in addressing it’s lack offerings. Implementing new

benefits immediately allows for a positive work environment, increases in work productivity and revenue

for the company. All in all a winning idea for Fossil.

Introduction

People always consider the type of benefits a company offers when applying for a job. Benefit packages

usually include a retirement plan, health, life, dental insurance along with paid time off. These usually are

a given but other companies can offer an abundance of other options. Due to a tight job market and the

difficulties of hiring qualified people, maintaining current employees is important for Fossil’s brand

success. Nurturing and retaining current employees are the only ways we can ensure that the brand

thrives.

Offering outstanding benefits and allows us to compete in the retail market. This in turn will attract more

qualified individuals.

To create the foundation to better sell our company image we will need to be proactive in what is

important to individuals. From Harvard Business Review an article The Most Desirable Employee

Benefits surveys two thousand U.S. workers that ranged between ages 18-81 years old. The results

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showed individuals prefer better health insurance along with more flexible hours and additional vacation

time. These benefits are costly to companies and some cannot always afford to cover all health insurance

plans. It is important to note that these three topics, health, time off and flexible hours are the main

benefits that Fossil needs to focus greatly on in order to retain and attract new talent.

Figure 1.1

Attracti

ng new

and

better

talent

isn’t the

only

reason

why

most

compan

ies offer

these

types of

benefits

, they

also do

it to

boost morale, increase company appeal, and minimize turnover rate while creating a better work

atmosphere. Below are a few outcomes on how a benefits package can impact a company.

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Proven Research

Boosting Morale

Boosting morale or a

person's well being in the

workplace is important

for a healthy

environment. Having a

healthier environment in

the workplace gives employees the opportunity to perform well and succeed in their daily tasks. Tom

Write who is an industrial-organizational psychologist and management professor at Kansas State

University states, “Not only can also psychological well-being benefit organizations by reducing lost

productivity due to sick days, but organizations can also benefit from the fact that healthy employees tend

to work both harder and “smarter” on the job.” Therefore, boosting the morale makes a difference in the

workplace, as shown in the diagram above you can see more detail on improvements in the workplace.

Increasing Brand Appeal

Retaining current employees and bringing in new talent increases our brand appeal and establishes a

strong foundation for Fossil’s future. The company need to increase our appeal to be competitive in the

retail job market. Fossil needs to offer an enticing benefits package and not something that only includes

minimal health insurance coverage, 401K, and paid time off. Fossil has to offer additional benefits such as

paying for a more than 50% tuition reimbursement, a higher matching percentage in employees 401K,

creating an onsite gym, offering discounted housing for new employees, or amenities discounts on

amenities such as haircuts, movies and free car washes. These can all retain employees that the company

current have and while appealing to new talent. In addition this in turn will decrease the turnover rate and

increase employee performance and morale.

Minimizing Turnover Rate

Offering more benefits will allow the company to retain their current employees and encourage others to

apply. Having a high turnover rate can cost a company $8,000 - $200,000 or higher depending on the

employee’s position and salary. This amount comes from loss of productivity hours, the amount of time

retraining a new hire and the time spent recruiting a replacement for the loss position. Not to mention

employees often question the “real reason” for people’s resignation creating a negative cultural

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environment. Minimizing the turnover rate will lower unnecessary costs. Fossil can divert those savings

into investing in additional benefits to retain their current staff and using new benefits to appeal to future

hires.

What Other Employers Offer

Starbucks

Starbucks offers a program called the “Starbucks College Achievement Plan” in which they provide part

time and full time employees full tuition reimbursement from Arizona State University (ASU). Though it

is specifically through ASU, ASU is known for their growing online bachelor degrees. This is an

opportunity for employees to finish some credits needed for another school or to earn a degree to further

their career with Starbucks or pursue their dream job.

Facebook

The tech giant is known to have over 30,000 full-time employees. These full-time employees benefit

many offerings from the company and interns can have in on it too. Interns enjoy free healthcare coverage

and free housing. Keep in mind that on average a Facebook intern is reported to make $7,000 per month.

Not a bad way to begin a new job!

Genentech

This biotech company is well known in the bay area and also retains many of its employees. The main

benefits not well known to many are its on-site amenities, including car washes, refueling your gas for

half the price it cost to fuel in a regular gas station, haircuts, child care, and a mobile spa with a dentist!

These are benefits that many do not think about but are additional considerations when a new an applicant

shows interest with Genentech.

Goldman Sachs

Though this company may seem dull to many, the investment banker offers life changing benefits for

some. Goldman Sachs offers gender reassignment surgery, a benefit the company has offered since 2008.

Goldman Sachs is also the first financial firm to offer to cover sex-change reassignment surgery medical

program to its employees. This shows Goldman Sachs’ devotion to its employees personal development.

Fossil Benefits

❖ Health Insurance

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❖ Life and Accidental Benefits

❖ Disability Benefits

❖ Flexible Spending Account Plans

❖ Retirements Savings plan + Company Matching Program

❖ Employee Assistance Program

❖ Wellness Benefits

❖ Tuition Reimbursement Program

❖ Transit Program

❖ Paid Time Off + Observed Holidays

❖ Volunteer Time Off

❖ Paid Sick Leave Benefits (applicable only in certain locations)

❖ Service Award Program

❖ Business Travel Benefits

❖ Employee Merchandise Discount

❖ Employee Hardship Assistance Fun

Beating the Competition Starting Small

Though Fossil offers various amounts of benefits compared to lower end companies, the higher end

companies are ahead. Tech companies offer endless amenities in which Fossil can pick up on. Starting

with small amenities such as:

❖ On site haircuts

❖ Office massages

❖ On site lunch or happy hour

❖ Tickets to events

These small amenities create excitement in the workplace and bring employees together. This also

benefits the company as a free advertisement. Millennials often enjoy broadcasting their entire lives in

social media. Creating business hashtags allows Fossil to jump on board with the tech companies.

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Improving Benefits Offered

While Fossil offers many benefits, it can sprouse up the benefits it offers in order to attract more attention

in the job market. Starting with the tuition reimbursement program, Fossil covers up to 50% of of college

degree costs and courses for any employee’s current or future role. This is great, but taking that 50% and

paying 100% is more appealing and will only benefit the company. Covering 100% will encourage

employees to study a field that will benefit not only them but will allow Fossil to retain its own talent. In

addition to this, restrictions such as working for minimum of two years in the company and pursuing

courses that can translate to future roles in Fossil allows the company to benefit from the benefits it

offers.

Financial benefits are important to employees and affect their morale inside and outside of the workplace.

As of now, if an employee puts in 6% of his/her salary, Fossil will match 100%. This is a generous

program and can still be improved. In regards to an employee being loyal to the company, Fossil should

implement a higher match such as 7%-9% depending on performance. This will encourage employees to

perform well and know that their hard work will be rewarded.

Having a service award program is nice within any company to show appreciationbut seeing it in their

paychecks is even more effective. Employee are then reminded twice a week that hard work truly pays

off. Following protocol, yearly evaluations should involve whether the employee has met all the job

requirements. Getting a raise is what every employee thinks when getting a yearly evaluation. Even

though we might not be able to afford a $4-$5 increase, having an increase of .50 - $1.00 can increase a

full time employees pay to an extra $1,920 a year. Changing the sales awards program from receiving gift

cards for exceeding quotas to yearly bonuses offers a more attractive incentive.

Conclusion

Fossil is a great technological brand. The company has integrated enhanced smart watches and not to

mention recently partnered with BMW to design, develop and distribute their watch and smart watches for

the next five years. By being competitive and offering better benefits, Fossil can take control and rule the

job market. Happiness is personal state of being that is powerful in and outside of any company. Let

Fossil lead the way in retaining and developing its current employees and attracting new and diverse

talents. No one can say no to increases in and profits, productivity and overall customer satisfaction.

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References

D. (2008, February 08). Another Goldman Perk: Sex Changes. Retrieved August 6, 2018, from

https://dealbook.nytimes.com/2008/02/08/another-goldman-perk-sex-changes/

Bramwell, E. (2018, February 22). Employee morale is a year-round priority. From

https://www.interact-intranet.com/blog/employee-morale-is-a-year-round-priority/

College Plan. (n.d.). Retrieved August 6, 2018 from

https://www.starbucks.com/careers/college-plan

Jones, K. (2017, February 15). The Most Desirable Employee Benefits. Retrieved August 4,

2018, from https://hbr.org/2017/02/the-most-desirable-employee-benefits Novotney, A. (2010, December). Boosting Morale. Retrieved August, 2018, from

http://www.apa.org/monitor/2010/12/morale.aspx