Assignment for Kim

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Page 1 of 3 Compensation and Benefits

MicroPharm BioSciences

Introduction

MicroPharm BioSciences (MPBS) is a small organization that grew rapidly. Not much attention was paid to administrative and management aspects, and human resource management was not a priority. As a result, haphazard and inconsistent practices developed. The organization has now concluded they need to implement a compensation plan to support continued growth and business strategy. Your consultancy firm, ABC consulting, has been called in to help do that.

You are leading the ABC project team working on the MPBS account and are responsible for analysis of MPBS HR matters leading to a centralized set of policies relating to total compensation and benefits programs. Your team will consider relevant benchmarking research as it works to overhaul and provide a more centralized set of policies relating to total compensation and benefits programs in key areas, including job evaluation, external competiveness, individual pay guidelines, pay-for-performance programs, and communication guidelines.

Dr. Rodriquez has suggested you work with the general manager as a point of contact. In preparation for your meeting, you and your team have reviewed information available at the company’s Web site. Your team has completed the preliminary review of the organization, including discussions with management, and compiled initial information about MPBS.

Preliminary Team Report

Senior management recognizes that HR policies have evolved somewhat inconsistently within each of the four separate divisions and aims to centralize policies. The organization is seeking to focus on developing a more formalized approach to compensation and benefits policies. Historically, the organization has always recognized the accomplishments of its scientific staff, while perhaps understating the integral role that administrative, business, and technical support staff have played in the organization’s growth and revenue generation.

The company’s Web page and internal documents highlight and profile the “deep scientific expertise” in the organization, but internal or external communications do not place equal emphasis on the contributions of nonscientific personnel.

Five years ago, the company employed only a third of the current staff. Even at that time, signs of HR problems were surfacing, including ethical issues, potential inconsistencies in supervisory and management treatment of employees, and problems with internal and external alignment of the pay system.

In 2003, an external consultant suggested a comprehensive job evaluation and an extensive salary analysis with likely adjustments across the board including implementation of additional incentives beyond scientific staff. Top management dismissed the recommendation openly stating that nonscientific staff did not contribute to the bottom line. The company did not attempt to extend any incentives to nonscientific staff. The consultant had also suggested a routine equal employment opportunity (EEO) audit to proactively explore potential concerns before any further growth in headcount. Top management dismissed all recommendations out of hand suggesting that supervisors did not have time for HR issues which would take from the time spent in revenue generating activities.

Over the past five years, employees have openly expressed concerns about their benefits being inadequate and a desire to have a benefit package reflecting more up-to-date policies as covered in the popular press and in top organizations that focus on the quality of work/life initiatives. The organization does not have a flexible benefits program and offers only one medical plan with two options, single or family coverage. Over half of the staff are under the age of 35 and do not require family medical coverage. Ten percent of the scientific staff hold H1-B visas and would like to apply for U.S. citizenship. A significant percentage of staff in support functions have been with the organization since its inception. This staff has an average age of 42.

Page 2 of 3 Compensation and Benefits

2 Module 1

MicroPharm BioSciences

Salaries are often inconsistent across divisions and even within project teams in a single division. Inconsistencies resulted from supervisors having discretion for hiring and pay increases for their direct reports, without consultation or approval from HR. Eventually these inconsistencies became clear to the HR team and even to the payroll staff. The HR manager recommended that management focus on consistency and ensure that performance evaluations were timely and tied to the annual pay adjustment cycle. The general manager ignored HR recommendations. Half of the staff had not had a performance evaluation in over two years. During the same time, the headcount had increased by 50 percent.

Last year, the HR department was overhauled and a new, more highly placed, and more experienced senior HR manager was hired. Senior management had recognized that, with growth, it was time to give attention to “business and management” issues, and so this aspect of the organization received as much recognition as the scientific accomplishments.

Here is the information found at the MPBS Web site:

Our History

MicroPharm BioSciences (MPBS) was founded in 1991 by Dr. Maria Rodriquez, a world-renowned biochemist in the field of liquid chromatography/mass spectrometry. Dr. Rodriquez was affiliated with Northwestern University in Chicago, Illinois.

Dr. Rodriquez’s early vision was to build an organization that would provide cutting-edge research services to the pharmaceutical industry. The organization has become well-known for its deep scientific expertise.

As the pioneer in this evolving and fast-changing industry, MPBS grew quickly and currently employs nearly 200 professionals in three separate business divisions serving related but diverse clients beyond the biosciences. MPBS has a mix of clients across four continents, including many of the major pharmaceutical organizations, government and privately funded organizations, and academic research groups.

Location

MPBS operates in three locations within the United States: Northern Illinois, Southeastern Pennsylvania, and North Carolina. We have 200 employees and almost all of them are located in the U.S.

Sales and support staff are located in all three U.S. locations and in England, Germany, Israel, and Japan. Our company has grown rapidly through diversification and acquisition to have four divisions: administrative, scientific, business, and technical.

We trace our roots to the two divisions—scientific and business—that reflect Dr. Rodriquez’s early vision to serve the pharmaceutical industry.

News

MicroPharm BioSciences (MPBS) recently acquired NanoPharm, producer of nanotechnologies in the field of bioscience. The new division, located in Virginia, has brought in an additional 75 employees and is expected to raise annual revenues by 15 percent of current levels. After the acquisition of NanoPharm, MPBS opened satellite offices in Seattle serving clients in Asia.

Products

MPBS continues to expand its diverse product lines and is fast becoming a recognized leader in cutting- edge microfluidic and nanochemical products across many industries.

Mission and Values

Our Mission

We are the recognized pioneers in bioanalytical services for the life-science industry and continue to innovate and excel in the field.

Our Values

To lead the way in research and innovation, driving the quest for new technologies

Page 3 of 3 Compensation and Benefits

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MicroPharm BioSciences

To anticipate and satisfy customers’ changing needs while achieving goals and adhering to core values

To have a structure devoid of hierarchy

To have a managerial style that is adaptive and anticipatory of changes while supporting ethical choices

To invest in employees’ continual development, empowerment, and growth

Careers

MPBS aims to be at the forefront of bioanalytical innovation. Our employees are our key asset and we aim to recruit individuals with experience, a body of knowledge, and the ability to propel growth and new ideas. We believe in a learning culture that fosters development and growth.

If you are interested in joining us, please review our current openings and submit a resume and cover letter through our careers page.

MPBS is an equal opportunity employer.