Over the years, Medtronic has seen itself grow into a solid company with accumulated wealth and experience. That being said, the company has had a lot of time to make necessary adjustments to the company’s procedures, activities, and policies. The reward and compensation system of the company has proven to be more efficient than other companies in the same industry as it lures employees from other companies. Other emerging companies find it hard to compete with Medtronic due to its set level, providing minimum competition. Unquestionably, a reward and compensation system needs to satisfy the preferences and needs of the beneficiaries.
From the case study of emerging pharmaceutical companies, it is evident that the current employees are not satisfied with what they are being offered. Meanwhile, the system they use at Medtronic seems to provide what most employees see as worthy. According to (Prasetio et al., 2019), when organizations bid on the wrong job satisfaction programs, there at a high risk of losing employees. For instance, the tuition reimbursement is too low for employees to further their education and get a degree to move up the hierarchical ladder in the organization. Conclusively, a good reward and compensation system can only be achieved if the management address the issues and concerns of the employees and draft a better plan that meets the employees’’ preference and demands.
Of course, for the emerging pharmaceutical companies to better their reward and compensation systems, there have to be critical issues and concerns that have to be addressed. First, health benefits and compensation need to be adjusted to meet the requirements. One employee states that she has to pay an extra $50.00 for her husband to get the coverage; she notes that the company does not care for such working couples with such requirements. Secondly, the employees aged 31 to 50 are concerned about their pensions plans. The employees state that it is difficult to plan for their retirement with no benefit options. At any point, everyone cares about their retirement period; with such plans, no employee will be committed to the firm for long and end up opting for better jobs with better pension plans. Every employee needs to be acknowledged for any extra effort they offer. One employee complains that the manager does not recognize the extra mile gone. Any action has to be identified to motivate anyone, be it minimal or spare.
Another employee complains of low salary. The main aim of working is to earn a living; if the job does not meet the employee’s financial demands, the employee will have to look for better-paying jobs. Workplace safety is a factor that requires a lot of attention, and employees have concerns over the state of the company’s workplace safety. According to Sorensen et al. (2018), safety emphasis yields better work performance. Work time is also an issue; employees complain of a minimal family lifetime. They complain of leaving late from work, which reduces the time they interact with their families. These are the issues that need to be addressed to create a better system.
Looking at both the emerging pharmaceutical companies and Medtronic systems of reward and compensation, it is clear that one has a better system that benefits the organization than the other. Health options for emerging pharmaceutical companies limit the employees; for instance, for the dental plan, they deduct $100 while Medtronic deducts $50 only. For medical, they require you to pay out of pocket for one of the plans $1000, while at Medtronic, the company contributes $500 for employees only and $750 for employee and spouse. Medtronic continues to offer activity earned points that will be deposited to your account and aid you in payment, customized shoes, travel packages, free medicals, and fitness packages. When you look at the salaries, Medtronic offers better pay for its employees.
Emerging pharmaceutical companies have offered 401(k) benefits for 3years with a core contribution of 3% for each eligible employee and employee savings; for an employee to qualify for the pension plan, they have to have worked for more than a thousand working hours. While Medtronic contributes 50% of 6% of the employee saves in their 401(k) plan, they also match their contributions according to the business’s financial performance for that year. For both, they contribute to whether the employee is saving or not.
Furthermore, for work-life benefits, both emerging pharmaceutical companies and Medtronic offer a paid time off that adheres to the rule of time; the longer you have worked for the company, the more paid time off. But Medtronic offers more days and money for paid time off than emerging pharmaceutical companies; for example, emerging pharmaceutical company offers 10days, 80hours, and $6.15 per hour for employees who have worked for less than 3years, yet Medtronic offers 20days, 160hours and $10.91per hour. Medtronic continues to offer an anniversary bonus of 5days after five years of service to the company, ten days of paid company holiday, and a year-end break from 24th to 28th December.
Lastly, both companies offer employees 100% tuition reimbursement benefits, but Medtronic provides more money to graduate and undergraduate degrees than Emerging Pharmaceutical companies. The companies continue to provide remote working for emerging pharmaceuticals and scholarship programs and adoption or surrogacy assistance from Medtronic company.
In conclusion, a comparison of the two companies has confirmed that a reward and compensation system needs to satisfy the preferences and needs of the employees for company efficiency and effectiveness. Issues and concerns have been the primary factor that molds the reward and compensation system.
Prasetio, A. P., Luturlean, B. S., & Agathanisa, C. (2019). Examining employee’s compensation satisfaction and work stress in a retail company and its effect on increasing job satisfaction. International Journal of Human Resource Studies, 9(2), 239-265. https://scholar.archive.org/work/fce2q4sp2fa2hjezn632nyw6c4/access/wayback/https://pdfs.semanticscholar.org/1f64/55315b7fa79e0644dc825267a3fb3e912a95.pdf
Sorensen, G., Sparer, E., Williams, J. A., Gundersen, D., Boden, L. I., Dennerlein, J. T., … & Wagner, G. R. (2018). Measuring best practices for workplace safety, health, and wellbeing: The Workplace Integrated Safety and Health Assessment. Journal of occupational and environmental medicine, 60(5), 430. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5943154/