Emerging pharmaceuticals needs to provide a more

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Emerging Pharmaceuticals’ needs to provide a more generous PTO policy and encourage employees to take time off from work. The health plan options at Emerging Pharmaceuticals are stronger than that of Medtronic and should remain the same. By comparing the two companies plan offerings, we can see that Emerging Pharmaceuticals’ health plan options have lower out of pocket costs for the employee. For example, Emerging Pharmaceuticals Choice+ PPO plan has a $10 office visit co-pay and $100 emergency room co-pay for in-network providers while Medtronic’s PPO plan has a $20 office visit co-pay and a $150 emergency room co-pay. Additionally, the out of pocket maximums for the Choice+ PPO plan (for an out-of-network provider) are $1,250 for employee only, $2,500 for employee plus one and $3,750 for employee plus two or more. The out of pocket maximums for the PPO plan offered by Medtronic is $3,500 for employee only and $7,000 for family. While the plan offerings should remain the same, Emerging Pharmaceuticals should implement a wellness program for employees. Forbes (2013) indicates that a wellness program is important to combat rising healthcare costs which are a large financial burden on employers. Emerging Pharmaceuticals does not provide a match on the 401(k) plan, while Medtronic provides a 50% match up to 6% of the employee’s annual salary. Sammer (2014) states that matching employee contributions to a 401(k) plan can increase plan participation and employee engagement. When determining how much of a match to provide, Sammer (2014) indicates that the employer must take a look at revenue over the last four to six years as well as future revenue
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P a g e | 8 projections. Emerging Pharmaceuticals will need to follow this process to come up with a sustainable 401(k) match. Population Affected Emerging Pharmaceuticals’ existing employees will be affected in some way by the proposed changes to the total rewards package. These changes include: 1) adopting a market match pay policy, 2) increasing paid time off, 3) offering wellness benefits and 4) matching employee contributions to the 401(k) plan. Scientists, Research Analysts, and Clinical Specialists/ Managers make up 16% of Emerging Pharmaceuticals’ workforce. A 2016 survey by SHRM found that 59% of employees consider being paid competitively with the local market as very important to their overall job satisfaction. By adjusting the pay for these specialized positions, employee engagement and retention will increase. Offering a more generous PTO policy and encouraging employees to take their vacation time will increase employee morale and improve productivity. SHRM (2018) states that “taking vacation has several personal benefits, such as reducing stress and improving relationships”. Offering wellness benefits also has personal benefits to employees such as reducing anxiety and managing work-related stress (SHRM, 2018). Finally, providing a match to employee’s contributions to the 401(k) plan helps to ease the stress on employees trying to save money for retirement.
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  • Summer '16
  • Employment compensation, preferred provider organization, Emerging Pharmaceuticals

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