OL 620 Milestone One Guidelines and Rubric
Professionals in the human resources field are often tasked with overseeing the benefits and compensation functions within any given organization. Human
resource professionals often have to examine specific compensation and benefit elements of a total rewards system and compare them with qualitative and
quantitative data collected internally, to determine how to fairly and appropriately reward employees for their work.
For the final project, you will analyze Emerging Pharmaceuticals in order to evaluate and revise the company’s current total rewards system. You will utilize
information presented in the case study to compare and contrast the U.S. organization’s total reward system with external benchmarking data. You will also
analyze the data for gaps and make revisions to the existing compensation and benefits package. The information you are provided with will be based on a
specific aspect of a benefits and compensation package (retirement benefits, medical benefits, and so on). You will also create a presentation to stakeholders that
explains the proposed changes, your rationale behind the changes, and the implications of the changes for the organization.
For Milestone One, you will prepare a draft of Parts A–C of your total rewards analysis (Section I of the final project). Your submission will have the major
heading “Total Rewards Analysis: Parts A–C.” Your instructor will grade your submission using the rubric below and will provide feedback you can apply to your
final project.
Begin by analyzing qualitative and quantitative data for the current system (as identified in the case study) that will inform your future recommendations and
revisions. Once your analysis has been completed, compare and contrast the provided quantitative data regarding the current benefits and compensation system
with external benchmarking data from Medtronic, an organizations within the same industry. Then draft Parts A–C of your analysis. Thoroughly cover each of the
critical elements, and include your answers to the guiding questions.
Specifically the following critical elements must be addressed:
I.
Benefits and Compensation Analysis: For this part of the assessment, you will analyze given aspects of a benefits and compensation package from the
provided case study. You will analyze qualitative and quantitative data regarding the current system and determine gaps in that system that will
inform your future recommendations and revisions.
A. Analyze the issues or concerns of employees through a review of the qualitative data presented in the case study, for their validity and
importance. Be sure to consider the needs of different demographics of employees within the organization.
B. Determine the key issues or concerns of employees that should be targeted and addressed, based on the provided qualitative data. Justify your
response. What issues or concerns should be targeted and why? Why should other concerns be made less of a priority? You could consider the
underlying reasons behind the issues voiced by employees.
C. Compare and contrast the provided quantitative data regarding the current benefits and compensation system with external benchmarking data
from the provided Medtronic data to complete your response. What does the current system have that other organizations do not? What do
other organizations offer that the current system does not? Be sure to justify your response.
Rubric
Guidelines for Submission: This milestone should be 3–4 pages in length (in addition to a cover page and references section) and should be submitted as a
Microsoft Word document with double spacing, 12-point Times New Roman font, and one-inch margins. Use at least three sources, which should be cited
according to APA style.
Needs Improvement (80%)
Not Evident (0%)
Value
Benefits and Compensation
Analysis: Issues or Concerns
Critical Elements
Analyzes the issues or concerns of
employees, reviewed through the
qualitative data, for their validity and
importance for organizational review,
considering the needs of different
employee demographics within the
organization
Analyzes the issues or concerns of employees,
reviewed through the qualitative data, for their
validity and importance for organizational
review, considering the needs of different
employee demographics within the organization,
but analysis is cursory
Does not analyze the issues or
concerns of employees, reviewed
through the qualitative data, for their
validity and importance for
organizational review
30
Benefits and Compensation
Analysis: Targeted and
Addressed
Determines key issues or concerns of
employees that should be targeted and
addressed, based on the provided
qualitative data, justifying response
Determines key issues or concerns of employees Does not determine key issues or
that should be targeted and addressed, based on concerns of employees that should be
the provided qualitative data, justifying
targeted and addressed
response, but determination is cursory, illogical,
or there are gaps in the justification
30
Benefits and Compensation
Analysis: External
Benchmarking Data
Compares and contrasts provided
quantitative data regarding the current
benefits and compensation system with
external benchmarking using the
provided tables and justifying response
Compares and contrasts provided quantitative
data regarding the current benefits and
compensation system with external
benchmarking data using the provided tables,
justifying response, but analysis is cursory,
illogical, contains inaccuracies, or there are gaps
in the justification
Does not compare and contrast
provided quantitative data regarding
the current benefits and compensation
system with external benchmarking
data
30
Submission has no major errors related
Submission has major errors related to citations,
to citations, grammar, spelling, syntax, or grammar, spelling, syntax, or organization that
organization
negatively impact readability and articulation of
main ideas
Submission has critical errors related
to citations, grammar, spelling, syntax,
or organization that prevent
understanding of ideas
10
Articulation of Response
Proficient (100%)
Total
100%
Medtronic Benefits Information
For use in OL 620 comparison with the supplied case study data
Retrieved from
http://benefits.medtronic.com/SitePages/ChannelContentR2.aspx?ChnIDval=3&GrpIDval=16&IDval=21
Emerging Pharmaceuticals and Medtronic Comparison
Introduction
You have recently been hired as a Total Rewards Director for Emerging Pharmaceuticals, a
growing pharmaceuticals manufacturer on the West Coast of the United States with 25
global locations. Emerging Pharmaceuticals was started by a group of private investors in
2011 and has skyrocketed in revenue over the last 3 years. Projected revenue for Emerging
Pharmaceuticals is expected to top $5 Billion by the end of the calendar year.
Your job is new to the organization, created because the organization has increasingly been
losing talent to Medtronic, one of Emerging Pharmaceuticals’ main competitors. Turnover
of new hires with less than 2 years of employment at Emerging Pharmaceuticals is 25%. The
vice president of human resources at Emerging Pharmaceutical feels it’s important to
compare the health, wealth and work/life offerings of Emerging Pharmaceuticals with
Medtronic and is expecting you to develop a Total Rewards strategy for the coming year
that will retain critical employees, respond to the needs of multiple generations in the
workforce, and keep costs under control.
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Emerging Pharmaceuticals and Medtronic Comparison
Emerging Pharmaceuticals Workforce
The workforce at Emerging Pharmaceuticals has tripled since its inception in 2012, growing to a total of 15,000 employees working in jobs such
as scientists, research analysts, IT techs, sales, administrative support, call centers, patient advocates, clinical trial specialists, patent attorneys,
and middle- and senior-level management. The employee demographics with employment types are shown below.
Global Full-Time Employees
Age and Status
Demographics
Total of all employees
30 and under
31-50
51 and above
Total Females
Locations
U.S.
Asia- Pacific
Canada
U.K.
Latin America
Global Part-Time Employees
Age and Status
Demographics
Total part-time employees
30 and under
31-50
51 and above
Total Females
Locations
U.S
Asia- Pacific
Canada
U.K.
Latin America
Total in Current
Calendar Year
15,000
2,640
10,018
2,012
7,042
10,100
865
895
2003
807
Employment Type
Employment Type by Position
Administrative Support Staff
Professional
Clinical/Scientists/Research Analysts
Middle Managers
Senior Management
Total in Current Calendar Year
6,600
4,375
2,450
1,200
375
2
Total in Current
Calendar Year
330
105
125
100
247
220
23
27
45
15
Emerging Pharmaceuticals and Medtronic Comparison
Employee Value Proposition
The employee value proposition (EVP) at Emerging Pharmaceuticals in the early stages was focused on challenging work, competitive pay and
opportunities to advance. In response to the increasing exodus of employees to Medtronic, the vice president of human resources hired an
external consultant to conduct employee focus groups. She is concerned with the results, especially in employees aged 31-50 with at least 2
children, which make up 37% of the workforce. The vice president learned of employee concerns about selections and costs in the health plans;
disenchantment with the 401(k) plan, which has no employee match; and questions about career paths, advancement opportunities, and work
hours. The high level of organizational growth has put pressure on all positions in the organization.
Here are the aggregated results of the focus groups’ responses:
TOPIC CATEGORIES FROM EMPLOYEE RESPONSES
Work remotely
Tuition reimbursement
Healthy lifestyle reward/Voluntary benefit options
Financial Wealth Options/Pension Match
Paid Time Off/ Family Time Options
Market “right” pay for position
Opportunities to use skills/abilities
Job-specific and company-sponsored general training
Professional development opportunities
Workplace safety
Community engagement/Corporate social responsibility
Recognition of job performance/variable pay options
Employee respect and diversity in the work environment
Trust between employees and Sr. Management
Teamwork within department
% RESPONDED
AS IMPORTANT
10%
8%
6%
5%
8%
10%
3%
8%
9%
2%
5%
8%
6%
5%
7%
The vice president read comments such as:
3
Emerging Pharmaceuticals and Medtronic Comparison
I never get home before dinner and we have a new baby at home. I leave for work at 6 a.m., fight highway traffic to be in by 8, and
extra work always ends up on my desk towards the end of the day. I can’t seem to get out of the office until 7 p.m. and home by 8:30.
By the time I get home my son is already asleep. I wish the company had a way for me to work from home.
I don’t see how I can move up in the organization when management positions require a degree, and the tuition reimbursement for
school is so low. Thirty-five hundred a year doesn’t go very far. Just the textbooks can cost $1,000.
There are some real safety hazards in my lab; OSHA would have a field day.
While I understand that the organization had to implement a “working spouse” surcharge for my health insurance, my husband and I
are really into a healthy lifestyle. We don’t smoke, we exercise and eat right and there’s no incentive for us – my husband’s health
plan is not as good and we are concerned about coverage because we’re trying to save for our first home. But now I have to pay
another $50.00 per month to cover him in our plans. How come there are no rewards for people like us who really work to take care of
ourselves?
The company claims they care about providing good rewards for us, but there are no voluntary benefit options, the pension plan has
no match, and I don’t know how I can save enough to retire. Are the profits just going to the “people at the top” and leaving the rest
of us behind?
The paid time off schedule only goes up to 18 days after 10 years of employment, with no sick time. I guess we’re supposed to leave
after 10 years. Is this a way to get rid of older employees?
I always go the “extra mile” at work and my manager doesn’t seem to notice.
I like my job, but a couple of people I worked with left recently for better pay at another company.
After reading all of the employee feedback, you and the vice president decide to compare Emerging Pharmaceuticals Health, Wealth and Work/
Life Total Rewards structure with information from Medtronic and make some revisions to the total rewards strategy for Emerging
Pharmaceuticals.
Health Options for Emerging Pharmaceuticals
Emerging Pharmaceuticals offers two health plan options to employees: the Value Preferred Provider Plan (Value PPO) and the Choice Plus
Preferred Provider Plan (Choice+ PPO). The Value PPO has lower bi-weekly costs but higher out-of-pocket costs at the time of service. The Value
PPO uses a narrow network of providers with higher penalties for out of network providers. The Choice+ PPO has higher bi-weekly costs, but
lower out-of-pocket costs. The Choice+ PPO offers a broader network of providers for participant choice.
4
Emerging Pharmaceuticals and Medtronic Comparison
Emerging Pharmaceuticals promotes the use of generic drugs and has established a $5.00 co-pay for generic prescriptions, and the organization
is considering a partnership with Care Compare, a benefits selection tool that helps employees search for and compare the cost of procedures at
various providers or facilities. If an employee uses Care Compare, Emerging Pharmaceuticals offers a financial incentive for selecting the lowestcost provider.
Medical (bi-weekly costs)
Value Preferred Provider Plan (lower premiums but high outof-pocket costs)
Employee Only - $57.50
Employee Plus One- $157.50
Employee plus two or more- $257.50
Choice+ Preferred Provider Plan (higher bi-weekly
premiums but lower out-of-pocket costs)
Employee Only - $86
Employee Plus One-$141.50
Employee plus two or more - $500
Health Plan Designs - Value Preferred and Choice+ Plans
Plan Design Elements
Office Visit Copay
Urgent Care
Emergency Room
Inpatient
Value PPO – 80 % Coinsurance- In-Network
Value PPO – 80 % Coinsurance- Out of Network
Choice+ PPO- 100% CoInsurance- In Network
Choice+ PPO- 100% CoInsurance- Out of Network
$25
$35
$250
$500
$75
$85
$250
$1,250
$10
$20
$100
$250
$20
$45
$100
$250
$1,000
$2,000
$3,000
$3,000
$5,000
$7,000
$750
$1,500
$2,250
$1,250
$2,500
$3,750
Out-of-Pocket
Maximum
Employee
Employee plus one
Employee plus two
Note: All plans are subject to a working spouse surcharge for spouses of employees who have the option of coverage with their own employer.
The surcharge is an additional $25.00 per paycheck.
Note: There are no wellness incentives for Emerging Pharmaceutical’s medical plans.
5
Emerging Pharmaceuticals and Medtronic Comparison
Dental (bi-weekly costs)
Comprehensive Plan- Preferred Provider
Employee Only - $12.50
Employee Plus One- $18.00
Employee plus two or more- $40.00
Basic Plan- Network Only
Employee Only - $7.50
Employee Plus One-$14.50
Employee plus two or more - $25.00
Dental Plan Designs – Basic and Premium Plan
Plan Design Elements
Diagnostic/Preventive Care
Basic Restorative Procedures
Major Restorative Procedures
Orthodontia
Calendar Year Maximum
Basic Plan
$100 deductible per person, all other work
covered by the plan
75% coinsurance
No coverage
No Coverage
$800 per person
Vision (bi-weekly costs)
Plan Design Elements
Vision Exam
Prescription Glasses
(instead of contact lenses)
One Plan Design for All Employees
Employee only - $6.67
Employee Plus One - $11.00
Contact Lenses (instead of
prescription glasses)
Employee Plus Two - $13.65
Emerging Pharmaceuticals Insurance Enrollment Summary - U.S. Location
Medical Plan and Level of
Coverage
Value Preferred Provider Plan
Employee only
Employee plus one
Premium Plan
$150 deductible per person, all other work
covered by the plan.
50% coinsurance
50% coinsurance
50% coinsurance, lifetime max to $1,500
$2,000 per person
Full Time
Part Time
Total
Employees
285
400
7
10
292
410
6
Plan Co-Pays
$20 copay
$30 copay. Prescription glasses
(frames and lenses) covered 1x each
calendar year to max of $140
$165 allowance for contact lenses
1x each calendar year
Emerging Pharmaceuticals and Medtronic Comparison
Employee plus two or more
2,500
34
2534
Choice Plus
Employee only
Employee plus one
Employee plus two or more
315
500
2,000
6
10
65
321
510
2065
MEDTRONIC 2018 Health Plans Side by Side Comparison
Company-Provided Account Contribution
CHP with HSA
HSA Contribution
PPO Plan
N/A
$500/ Employee only
$750/ Employee + spouse OR
Employee + children
$1250/family
Deductible
$1,400/ Employee only
$2,800/ Employee + spouse OR
Employee + children
$3,600/family
$500 Employee only
$1,000/family
Out-of-Pocket Maximum (includes deductible)
$3,500/ Employee only
$7,000/Employee + spouse OR
Employee + children
$9,000/family
$3,500/ Employee only
$7,000/family
20% co-insurance, after deductible
$20 copay
Primary Care Provider Visit
7
Emerging Pharmaceuticals and Medtronic Comparison
Specialist Visit
Co-insurance
Preventive Care
Emergency Room
Online Care/Virtual Visit
Medtronic Mounds View Clinic
20% co-insurance, after deductible
20%
0%
100% covered by plan
$40 copay
20%
0%
100% covered by plan
20% co-insurance, after deductible
100% covered by Plan, after deductible
100% covered by Plan, after deductible
$150 copay
100% covered by Plan, you pay nothing
100% covered by Plan, you pay nothing
Salary Comparison
Job Title
Emerging Pharmaceuticals Pay Range
Average at domestic locations
Medtronic Pay Range
Average at domestic locations
Scientists
Average
$93,500 Range $82,000 to $100,000
Average
$103,900
Range
$92,000 to $112,000
Research Analysts
Average
$76,000 Range $63,000 to $95,000
Average
$86,547
Range
$71,000 to $125,000
Clinical Specialist
Average
$69,000 Range $63,000 to $90,000
Average
$78,000
Range
$70,000 to $128,000
IT Developers
Average
$90,000 Range $85,000 to $120,000
Average
$95,370
Range
$89,000 to $132,000
Non- Clinical Manager
Average
$54,000 Range $48,000 to $68,000
Average
$61,750
Range
$55,000 to $74,000
Clinical Manager
Average
$100,000 Range $75,000 to $110,000
Average
$105,000
Range
$75,000 to $120,000
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Emerging Pharmaceuticals and Medtronic Comparison
Wealth Benefits at Emerging Pharmaceuticals
The 401(k) plan has only been in effect for 3 years. The first 2 years of operations, Emerging Pharmaceuticals had no 401(k) in place, and when
the organization was ready to start a plan, contributions were not retro to the earlier years of operations, even though the organization had
some positive revenue results. The vice president of human resources read some comments from employees about the absence of retro
funding, but has not thought about the impact of the employee feedback to this point.
The WEALTH PLAN at Emerging Pharmaceuticals has two primary elements: a core contribution, and employee savings. Emerging
Pharmaceuticals makes a core contribution to the 401(k) at the end of each calendar year. The core contribution is 3% of eligible pay for each
eligible employee. The definition of eligible pay includes annual salary and anything considered to be regular wages. Pay not eligible for a core
contribution is pay earned because of a performance bonus, lump sum for unused PTO, or workers’ compensation payments. Emerging
Pharmaceuticals makes the core contribution whether you are saving as an employee or not. Employees are not eligible for the pension plan
until after completing 1,000 hours of service at Emerging Pharmaceuticals.
Employees can save up to the IRS limits each year and should consider options to save as much as possible. Contributions are made on a pre-tax
basis and there is a catch-up contribution of an additional $6,000 for employees age 50 and older.
Work-Life Benefits at Emerging Pharmaceuticals
The work-life benefits at Emerging Pharmaceuticals include paid time off, paid holidays, tuition assistance, and limited remote opportunities.
The major holidays are in addition to paid time off and include New Year’s Day, Memorial Day, July 4th, Labor Day, Thanksgiving, the day after
Thanksgiving, and Christmas Day. Paid time off is front-loaded according to years of service and is a use-it-or-lose-it benefit. Paid time off is also
used for illness. There is no separate illness bank of time. The paid time off schedule is developed off of years of service and, because Emerging
Pharmaceuticals is a young company, the table of time only shows 10 years. There are no provisions for time-off banks beyond 10 years. If an
employee has paid time remaining in their bank of time after December 15th of any year, the time will be lost. Paid time off banks are reset on or
around January 1st of each year. There is no carryover provision and no provision to “buy out” any paid time off.
The schedule for Paid Time Off is as follows:
Continuous Years of Service
3 years or less
After 3 years
After 6 years
PTO in Days
10
12
15
PTO in Hours
80
96
120
9
Monthly Accrual in Hours
6.15
7.38
9.23
Emerging Pharmaceuticals and Medtronic Comparison
At 10 years and every year
thereafter
18
144
11.07
NOTE: As the Total Rewards Manager, you should think about how a short term list of time off affects retention of employees.
Remote Work Options
Remote work options at Emerging Pharmaceuticals are only available to scientists or analysts who develop data analytics for drug/patient
outcomes. The remote work option requires daily huddles by Skype for Business and attendance at unit meetings at least once a week. Emerging
Pharmaceuticals will provide the appropriate computer equipment and connections. Employees are required to be online by 8:00 a.m. each day
and may be required to work on the weekends as requested. There is no reimbursement for home-based Wi-Fi, which is vital to work remotely
from home.
Tuition Reimbursement
The tuition reimbursement program is available to eligible employees. Employees must have completed at least 1 year of service and will be
reimbursed for education that is considered either an “upskill” related to the employee’s current position, or coursework as part of an
undergrad or graduate degree (doctoral-level education is not included) at an accredited U.S. college or university. The yearly benefit is 100% up
to $2,000 for an undergraduate degree and up to $3,500 for a graduate degree.
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