Question

4

Benefits and Compensation Analysis

Deyanira Diaz

Southern New Hampshire University

OL-620

Dr. Burcham

April 10, 2022

Benefits and compensation analysis

Emerging Pharmaceuticals is one of the fastest-growing pharmaceutical manufacturers in the U.S, with twenty-five international locations. The firm was founded by a group of private investors at the start of 2011, and its revenues have escalated significantly in the last three years. Despite these significant milestones, the company has been losing its top-notch talent to one of its main competitors, Medtronic. As such, the firm is leveraging on the input of external resources to identify issues with workforce retention. Its competitor, Medtronic has been successful in retaining its employees because of the strategies the company put in place. Medtronic has invested in its workforce career development programs (Pharmaceuticals, n.d). The firm appreciates workforces diversity and their needs. As a result, the company responded by developing mentorship programs as well as career development initiative, which entails leadership training, advancement of education, flexible working hours, care, and care centers. The firm’s philosophy, “treat personnel the way you would want the clients to be treated,” guides its actions. Emerging Pharmaceuticals can use Medtronic as a benchmark to address issues and concerns relating to employee turnover and develop an attractive benefit and compensation package for its employees.

Issues and Concerns

Issues raised in the case study include high team member turnover and insurance coverage for employees. Emerging Pharmaceuticals is concerned about losing 25 % of its new hires to Medtronic and issues relating to insurance coverage and employees benefits, and team member packages (Pharmaceuticals, n.d). Feedback from focus groups shows that the employees of Emerging Pharmaceuticals are dissatisfied with the benefits and compensation package. One of the employees in the focus groups asserts that there is no work-life balance. According to the respondent, employees spend much of their time in the company and have little time with family, considering that more than thirty-seven percent of the workforce has at least two or more children. The workforce is also concerned about the firm's health plans and dissatisfaction with the 401(k) plan, which lacks a workforce match.

Employees are also concerned about the career path, opportunities for career growth as well as long working hours. One of the focus group members states that Emerging Pharmaceuticals do not reward healthy lifestyle efforts. Furthermore, the firm does not offer voluntary benefits to the employees. Employees also raise concerns relating to sick leave and paid schedule, which they argue that the company only offers paid time off up to 18 days after ten years of service. The firm is concerned about the workforce in the age group of 31- 50 years (Pharmaceuticals, n.d). This group makes up thirty-seven percent of the company's workforce. These workforces have families and are very concerned about the cost of health plans and career trajectory. Furthermore, this group believes that the company should prioritize remote work to aid them in having quality time with their children and loved ones. 9 % of the respondents in the focus groups put a lot of value on professional development opportunities, while 8 % advocate for paid time.

Key issues or concerns to be targeted

Key issues and concerns of the workforce to be targeted relate to the high turnover ratio of new hires. The focus groups responses give insight into the issues and concerns which the firm should give more priority. Focus group responses show that 10% of employees view working remotely and better pay as their significant areas of concern, followed by an absence of professional development, paid time off, rewarding job performance, training, Tuition recompense, Teamwork within departments, employee veneration and diversity in the workplace, health lifestyle and CSR. High employee turnover is high among the new recruits, mostly aged between 31 and 50 years. This group of employees have young families; hence they require quality time with loved ones. Research shows that work-life balance reduces stress and prevents burnout (Bellmann & Hübler, 2020). Furthermore, chronic stress is the most health issue in today's workplace and can escalate employees' cost of healthcare. The firm lacks flexible working hours, and there are no remote work options. Based on the focus group response issues and concerns that should be given high priority ranks in the following order; health problems, remuneration, work-life balance, remote work option, and tuition reimbursements. These concerns are rated above 5% on focus group importance sales, with 10% being the highest.

Since Emerging Pharmaceuticals lose its new recruits party due to poor compensation, inadequate insurance cover, and work-life balances. These issues should be given the highest priority. From the case study, employees aged between 30 and 50 complained of a lack of work-life balance, and some complained about poor remuneration and inadequate insurance cover. For this reason, Emerging Pharmaceuticals must place a high priority on these concerns as they are the leading cause of high turnover. Employees rank workplace safety as the least important of their concerns. Pension matches, employee management relationships, and CSR ranks 5% and below, which indicates that employees view them as the least important of their concerns. The most critical issues and concerns raised in the case study are those that contribute significantly to high employee turnover. They include remote working, market-rate pay, opportunities for professional development, and work-life balances.

External Benchmarking

There is a substantial difference in the reward package of Emerging Pharmaceuticals and Medtronic. For instance, when comparing prescription drug plans for the two firms, Medtronic pays one hundred percent for its generic drugs, whereas Emerging Pharmaceuticals demands $5 co-pay for all of its generic drugs. Medtronic also offers 100 % Tuition on annual tuition costs not exceeding $3000 for undergraduates and 5250 for the graduate program. Medtronic also runs a Healthier Together program that compensates employees for healthy lifestyles. Thus, the program offers the employee an opportunity to earn points when tracking engaging in healthy activities such as healthy nutrition and adequate sleep. Furthermore, the program involves the spouses as well. Emerging Pharmaceuticals can emulate Medtronic's compensation program, especially tuition reimbursement, insurance coverage and rewarding employees for a healthy lifestyle to address major as these are some of the concerns raised by employees. Emerging Pharmaceuticals can also run 401k Plan which matches 50% of the first 6% saved by the employees and benefits suffice thereafter .Emerging pharmaceutical lacks a 401k which is one of the major concern of the employee. Enrolling in a 401k plan can contribute towards employee saving goals (Lawton, 2018).

References

Bellmann, L., & Hübler, O. (2020). Working from home, job satisfaction and work–life balance–robust or heterogeneous links?. International Journal of Manpower.

Lawton, B. (2018). Together we are stronger.

Pharmaceuticals, E. (n.d.). Emerging Pharmaceuticals and Medtronic Comparison. Retrieved May 29, 2021, from https://learn.snhu.edu/content/enforced/755294-OL-620-Q4988-OL-TRAD GR.21TW4/Course%20Documents/OL%20620%20Emerging%20Pharmaceuticals%20Case%20Study.pdf