Milestone Two: Benefits and Compensation Analysis
Lilia Sandoval
Southern New Hampshire University
Course: OL-620 Total Rewards
Linda Jenkins
July 10, 2022
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Milestone Two: Benefits and Compensation Analysis
Misalignment, Differences, and Gaps
It's human nature to be curious and as an employee, some wonder how others in
the same field of work are getting paid or what benefits they have compared to themselves.
When comparing Emerging Pharmaceuticals and Medtronic's current benefits you notice the
misalignment immediately. One difference in prescription drugs, Medtronic's PPO plan pays
100% for generic drugs (Medtronic, n.d., pg.2) whereas Emerging established a $5 co-pay
(Emerging Pharmaceutical and Medtronic's Comparison, n.d., pg. 5). Both being pharmaceutica
having their employees pay for generic drugs versus having them 100% covered is a huge gap.
Another misalignment is the health insurance and the extra benefits that are provided by
Medtronic. Emerging offers basic health care, dental, and vision compared to Medtronic's health
insurance which has extra benefits, like earning points for prizes or sweepstakes and fitness
programs. Having different health insurance isn't always the problem when compared with other
companies it's the extra benefits that create the gap between both. Having other benefits that a
company provides to help retain their employees such as pension plans, annual PTO, and
tuition reimbursement are the differences that employees look for when considering working for
a company.
Health insurance, coverage, pension plans, annual paid time off (PTO), and all other
extra benefits are areas that Emerging pharmaceuticals need to improve and reduce the gap of
the misalignment with Medtronic. These elements are to show employees that the company
appreciates their hard work and rewards them with what they deserve. For example, simply
increasing the annual PTO and sick time off would help show the employees that the company
cares for their wellbeing. Benefiting the company with high retention rates and making more
people interested in working for them.
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Increased, Reduced, or Stay the Same
First and foremost, the starting pay needs to be reevaluated. Currently, the average pay
for Emerging is $5,000-$10,000 less than Medtronic's. Emerging needs to increase their salary
by using resources like Salary.com that are constantly updating their data to ensure you are
always having the most competitive pricing (SHRM, n.d.). Emerging should also improve their
health insurance. As explained in the previous section, Misalignment, Differences, and Gaps,
Emerging need to incorporate better insurance that will also provide more for their employees.
This will allow their employees to get regular checkups to potentially win rewards or cover gym
memberships which will maintain a strong and healthy staff. Increasing the match on the 401k
compared to matching 50% of the first 6% you save, which is what Medtronic is offering
(Medtronic, n.d., pg.10). This will allow for a more competitive pension plan for Emerging staff
members. A major complaint that most employees are concerned about is their PTO. Increasing
their PTO and removing the use it or lose it benefit and adding sick days that are not your PTO.
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