UnitedHealth Group Incorporated (UNH) is a managed healthcare company located in the United States of America. In 2019, it was ranked as the second biggest healthcare provider in the world with a revenue of 240.3 billion dollars. Certain factors most likely contributed to its high place in the industry, including the quality of the products and services it provides and the advertisement that goes into it. However, an important part of any business’ success is its human resource management (HRM). This term covers the process of hiring, training, and assessing new employees, structuring the workflow, and providing a satisfactory working environment. The goal of this paper is to look at some of HRM components and, according to them, to evaluate HRM at UNH.
UnitedHealth Group Incorporated
UNH was founded in 1977, in Minnesota, where its headquarters are located to this day. Its growing success in the industry since then can be determined from its acquisition of a number of competing healthcare providers. UNH offers potential customers healthcare products, health-related services, and health insurance policies. In 2011, a separate branch called Optum was created to focus on the technological side of the business, including data analytics, delivery, and pharmacy services. UNH’s clientele includes approximately 130 million citizens of the US, Brazil, Chile, and over 130 other countries, with most clients purchasing medical insurance.
UNH’s business model is similar to those of other companies providing medical insurance. The business stays profitable with the help of its healthy customers essentially paying for the sick ones. Another reason for UNH’s growing revenue is the way the health industry is structured in the US, where a large part of UNH’s clients live. According to this structure, a citizen will have to resort to the company that provides their medical insurance even for a short checkup at the doctor’s.
However, one should also account for UnitedHealth Group’s success among organizations providing similar services and products. In 2019, UNH has managed to rank as the second biggest healthcare provider in the world with a revenue of 240.3 billion dollars. This accomplishment can be attributed to the quality of their products and the constantly ongoing analysis of what UNH needs to offer to potential customers in order to be chosen by them. This is achieved, in part, due to the fact the company is the workplace of a lot of people who can be considered experts in their own field. In order to attract those employees, UNH has to keep them happy which is where human resource management plays its role.
Human Resource Management
HRM covers a wide array of responsibilities related to the prospering development of a company. Human resource management includes hiring and training employees, appraising their performance, devising the work structure and designing a reward system. The goals that HR departments strive for is to create a positive and engaging work environment, providing the employees with a sense of fulfillment and maximizing work efficiency in order to guarantee the company’s success. It is also important that all the components have an interactive relationship where “the combined effect of different HRM practices is greater than the sum of the individual effects” (Hauff 4). Unfortunately, “the dominant models within HRM theory and research continue to focus largely on ways to improve performance, with employee concerns very much a secondary consideration” (Guest 22). However, ideally, the chosen HRM strategy should benefit both the employers and the employees.
Hiring and Training New Employees
Considering people retiring or switching their place of work it is important to maintain an approximately equal number of workers. For companies that are constantly growing by starting new branches, opening in new locations or acquiring new businesses, it is vital to raise their human capital in order to keep up with an expansion. The process of hiring new workers is particularly crucial to figure out for big organizations that receive thousands of applications every day. For those corporations, it is important to take into consideration all particularities that go into hiring a new employee.
First of all, the company needs to pick a set list of requirements that will frame the job opening as one that demands a high level of expertise. However, big corporations can often afford to extensively train their new employees so this list should not dissuade candidates with great potential from applying. It is also vital to remember that applicants try to show their best side in their CVs and employers should be aware of “the inner motives and unconscious mechanisms that motivate a person for action” (Janetius et al. 259). Second, as not to read through every single application that comes through, a company also needs to devise a way to skim the CV’s. This can be achieved by deciding internally on a list of skills and background information that deems an application worthy. Lastly, it can help to devise a test that one can administer to the applicant during a job interview. On the one hand, it should not take up too much time. On the other hand, the test should evaluate the potential employee’s skill level and whether or not they fit the company.
Employee Perks
A competitive salary is still one of the most important things an applicant looks at when choosing between two or more jobs. However, nowadays, in order to entice smart graduates and expert workers switching companies, it helps to offer a set of employee perks. The benefits can often be split into two categories. One group of perks ensures a fun working environment which will be covered in the next section. The other category includes a list of discounts and account plans that guarantee a better quality of life for the employee. The most common such perk is a 401(k) plan which is a pension plan that ensures that a person will have enough money saved up to not work after retiring. Another benefit could be a work health insurance which is typically cheaper than an individual health plan. The last common perk of this category is a substantial number of paid sick days and vacations that make sure that employees get to rest without worrying about supporting themselves and their families.
Overall Atmosphere at the Company
Ensuring a pleasant working atmosphere can be very ineffective if it becomes the sole focus of the company. Most employees still prefer to have concrete benefits that will make their life considerably easier and save money to those that guarantee a fun workplace. However, if an organization has provided everything else, it is vital for it to consider its overall atmosphere. There is a number of ways that can be achieved. It can include going for a more casual office look, establishing a less official and hierarchical relationship structure between employer and employee and equipping the office with things that make one’s day more enjoyable. Considering, the amount of time one spends at the office, one’s workplace can be regarded as a person’s second home. It would be beneficial for the employer if employees do no dread coming to the office and spend the workday in a pleasant mood, well-rested and well-fed. However, the company should also ensure that all the atmosphere-making practices do not distract and interfere with the workers’ assignments.
Human Resource Management at UnitedHealth Group Incorporated
Hiring and Training New Employees
UNH gets thousands of applications every day which causes them to devise faster ways of evaluating them. When applying for a job at UnitedHealth Group, one also has to answer several qualifying questions. An automated response is then generated on the basis of the answers and the candidate gets an invitation to a job interview. The meeting itself is often fairly short and entails either a small test or a set of questions after which the applicant waits for the final decision to be made (UnitedHealth Group Company Reviews). This could take from several days to a couple of weeks. Overall, this process is structured in a way that is balanced between minimizing the time spent and correctly assessing the candidates. The only problem is the possible long period of time between the job interview and a positive response during which the applicant could get a job from a different company.
Employee Perks
The pay at UnitedHealth Groups can be considered competitive as even people working at the lowest positions receive twice the minimum wage (UnitedHealth Group Company Reviews). Considering that UNH is a healthcare company, it would be logical to assume that most candidates are hopeful that the corporation provides medical insurance as one of the employee perks. Indeed, that is one of the benefits that UnitedHealth Group offers its workers and it includes dental, life and disability insurances (UnitedHealth Group Company Reviews). UNH also provides its employees with a 401(k) plan and paid vacation days. However, the workers complain about short maternity leaves and bad conditions for future mothers (UnitedHealth Group Company Reviews).
Overall Atmosphere at the Company
One of the best benefits at UNH is the flexible schedule and ability to work from home which allows employees to define their workday in terms that are convenient to them. As far as work attire is concerned, UnitedHealth Groups asks its workers to dress in a way that would allow comfort while still looking professional. The company also arranges free lunches and unlimited coffee for its employees which helps keep them well-fed and rested and maximizes work efficiency (UnitedHealth Group Company Reviews).
Conclusion
A corporation can provide the best products and services but unless it hires good workers and presents them with certain benefits and a good atmosphere within the company, it can never become successful. Hiring capable employees and keeping them satisfied with the work they do is the prerogative of the HR department. This paper described some of the components of human resource management, according to which UnitedHealth Group was evaluated. Overall, the global healthcare company has a well-structured HRM that provides its employees with a pleasant work experience and maximizes work efficiency.
Works Cited
Guest, David. “Human Resource Management and Employee Well‐Being: Towards a New Analytic Framework.” Human Resource Management Journal, vol. 27, no. 1, 2017, pp. 22-38.
Hauff, Sven. “Analytical Strategies in HRM Systems Research – A Comparative Analysis and Some Recommendations.” The International Journal of Human Resource Management. Web.
Janetius, S.T., et al. “Projective Tests in Human Resource Management and Hiring Process: A Challenge and a Boon.” The International Journal of Indian Psychology, vol. 7, no. 4, 2019, pp. 258-265.
UnitedHealth Group Company Reviews. Indeed, 2020. Web.