Background
Total reward analysis uses various information to help identify organizational trends and areas that require change. Human resources managers collect and arrange this data to create competitive compensation and benefits packages. The technique used to examine Emerging Pharmaceuticals’ benefits packages combines quantitative and qualitative information. The aim is to find any inconsistencies, gaps, or disparities with their current total incentives scheme. Components that should be eliminated or kept in place following their advantages and disadvantages will be discussed, as well as analyses of potential modifications and how they would affect the current demographics.
Comparison and Evaluation
The areas of misalignment are currently present in the benefits and compensation system of two companies, Medtronic and Emerging Pharmaceuticals. The primary area of misalignment is connected with the benefit and reward system in the organization. One difference between Emerging Pharmaceuticals and Medtronic was highlighted while examining the two businesses. The significant distinction is the compensation for the time left in both companies. The longer employees work, the greater the number they get these days, according to Medtronic (Emerging Pharmaceuticals & Medtronics Comparison, 2023).
Emerging Pharmaceuticals offers a balance between work and life through subsidized vacations, tuition reimbursement, supervised remote employment, and paid time off. Compared to Medtronic, EP’s leave compensation is clearly out of alignment (Emerging Pharmaceuticals & Medtronics Comparison, 2023). The evaluation based on external benchmarking data shows that Medtronic has a better reward system than EP.
Employees at Emerging Pharmaceuticals who have worked there for three years or fewer are entitled to ten paid vacation days. Employees at Medtronic with less than four years of continuous employment are entitled to 20 paid vacation days. Employees of EP accrue time at a significantly lower rate than those of Medtronic. More than half of what EP gives its employees is provided by Medtronic, where open paid time off is now a real possibility (Emerging Pharmaceuticals & Medtronics Comparison, 2023). Increased productivity, improved staff morale, and increased employee confidence all help to recruit and keep top personnel.
Comparing the pay scales for the two businesses, it was clear that Emerging Pharmaceutical was underpaying its employees. About $10,000 more is paid to employees at Medtronic than at EP (Emerging Pharmaceuticals & Medtronics Comparison, 2023). According to information provided by the Bureau of Labor Statistics (2021), there will be a 17% increase in demand for medical scientists during the subsequent decade. As EP is still in its early phases, it can reconsider its remuneration package to draw in and keep talented employees.
The critical areas of the current system that are misaligned with the competition are connected to health insurance coverage for the workers. Emerging Pharmaceuticals employees can choose between a Value PPO and a Choice PPO health coverage (Emerging Pharmaceuticals & Medtronics comparison, 2023). Both a PPO plan and a Consumer Health Plan are provided to Medtronic workers.
In contrast to EP, Medtronic offers either HSA or PPO insurance. Compared to Medtronic, Emerging Pharmaceuticals’ health plan offers more expensive premiums, deductibles, and personal expenses (Emerging Pharmaceuticals & Medtronics Comparison, 2023). Additionally, EP does not reward employees for maintaining a healthy lifestyle through wellness programs.
Changes
Emerging Pharmaceuticals’ reimbursement for educational expenses should be increased to at least five thousand dollars. Employer-provided education support was extended by the American Taxpayer Relief Act of 2012. Employees can now forego up to $5,250 in tuition help per year for undergraduate and graduate programs (The Bureau of Labor Statistics, 2021). There should be more PTO hours, and the fact that sick days constitute a part of PTO should be considered.
Holiday days are not mentioned, and if PTO covers vacation and sick days, it would be impossible for someone who has not worked for the company for more than three years to take a leave of absence of at least two weeks. EP should think twice before transferring unused PTO into the following year. More people should be allowed to work remotely than researchers and analytics do. All staff members whose positions allow for working from home should be given the option. When working remotely, there must be some new changes in the organizational aspects.
Impact and Populations Affected
Making the most of financial aid can help Emerging Pharmaceuticals compete. It serves as a draw for hiring new employees. With a raise, 17% of the employees will have a better chance of getting promoted. Working remotely was previously just an option for a select few employees. The pandemic instantly increased the popularity of remote work for practically everyone.
The organization can afford to open up working from home for at least eighty percent of the workforce (Emerging Pharmaceuticals & Medtronics Comparison, 2023). Rent and all other expenses associated with maintaining a prominent place can be minimized or eliminated (Emerging Pharmaceuticals & Medtronics Comparison, 2023). Even though some people find that working from home increases productivity, the company and the staff member may save revenue while spending additional time with their families. When an employee works online, part-time and full-time, a company can save money, which is economically justified. Many firms provide their staff members with annual workspace setup fees. Whenever an alternative becomes available, it affects all demographics regardless of age and specialization.
References
US Dept. of Labor (2021). Occupational Outlook Handbook. Bureau of Labor Statistics. Web.
Emerging Pharmaceuticals & Medtronics Comparison. (2023). Southern New Hampshire University.