Emerging pharmaceuticals will have trouble recruiting

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Emerging Pharmaceuticals will have trouble recruiting and retaining highly qualified employees (Martocchio, 2015). There are also differences between Emerging Pharmaceuticals’ and Medtronic’s paid time off (PTO). The key difference is the amount of time that employees receive. At Emerging Pharmaceuticals employees who have three years or less of service receive 10 days of PTO, while at Medtronic employees with four years or less of service receive 20 days. Emerging Pharmaceuticals’ increases PTO for employees based on continuous years of service, however,
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P a g e | 6 this increase caps at 18 days after ten years of service. This maximum is still less than the starting off point for available PTO days at Medtronic. With respect to the health and wealth options at both Emerging Pharmaceuticals and Medtronic, there are aspects of each plan option that differ. Both companies offer two health plan options that are similarly structured and the out of pocket costs for Emerging Pharmaceuticals’ plans appear to be less than that of the Medtronic plan options. The difference between these plans is that Emerging Pharmaceuticals has no wellness initiatives. Medtronic has a wellness program called “Healthier Together” that rewards employee participation with prizes and lowered medical costs. Emerging Pharmaceuticals’ 401k plan has no company match while Medtronic matches 50% of the employee’s contributions up to 6% of their annual salary. Increased, Reduced or Stay the Same The salaries of employees at Emerging Pharmaceuticals fall short in comparison to Medtronic. On average, employees in specialized positions such as Scientists and Clinical Specialists are earning 9% less at Emerging Pharmaceuticals compared to Medtronic. For example, the average salary for a Clinical Specialist is $69,000 at Emerging Pharmaceuticals and $78,000 at Medtronic. The demand for qualified talent to fill these jobs is already high and the Bureau of Labor Statistics is projecting that demand to continue. Therefore, Emerging Pharmaceuticals will need to adjust the salaries for these positions to follow typical market pay rates. Martocchio (2015) defines this pay policy as a “market match policy” which is a safe approach for companies to take as they are spending no more or less on compensation than competitors. Emerging Pharmaceuticals’ current PTO policy is very weak and does not measure up to that of Medtronic. SHRM (2016) indicates that 63% of employees view paid time off as a very
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P a g e | 7 important contributor to job satisfaction. However, many employees do not use all of the PTO available to them throughout the year. SHRM (2018) indicates employees do not use all of their vacation for reasons such as they fear falling behind or that they can never be truly disconnected.
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  • Summer '16
  • Employment compensation, preferred provider organization, Emerging Pharmaceuticals

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