Organizational Objectives and Total Compensation in Different Markets Essay
Organizational Objectives and Total Compensation in Different Markets
Organizational Objectives and Total Compensation in Different Markets Total compensation is an important piece of the human resource puzzle. It is the thread that can tie valuable employees to the company and its overall success. The laws and regulations are significant in knowing and understanding in an attempt to apply that knowledge to the overall design of the total compensation package a company offers. Working as a federally contracted employer for more than 200 employees, certain laws and regulations will affect the total compensation package within the organization. One in particular is the Affordable Healthcare Act. Two biotech organizations and their total compensation package will be discussed.
The Affordable Health Care Act
The Affordable Health Care Act was designed to help all people obtain and maintain their healthcare coverage even in the event of loss of employment. The creation of the Afforadble Health Care Act allows insurance companies “from discriminating against anyone with a pre-existing condition, dropping your coverage if you get sick, billing you into bankruptcy because of an illness or injury, and limiting your annual or lifetime benefits” (www.whitehouse.gov, 2013). The Affordable Health Care Act was not received well from some of the population. It seemed to be not quite so affordable and quite difficult to obtain. After a few of these glitches have been repaired, it is becoming more acceptable to everyone it is intended for.
The above was just one law that is now to be considered when creating the total compensation package. Most of the benefits offered will be based on the size and location of an organization. This organization’s total compensation package will include an array of benefits that each employee will be offered once they have been hired. These items include: Medical plan (dental, vision)
LTD, STD plans
Flexible spending accounts
Tuition Reimbursement for continuing education
Employee Assistance Programs
Comparisons to these benefits have been made with other biotech organizations, namely United Therapeutics and Amicus Therapeutics.
The first organization for comparison is United Therapeutics Corporation. This company focuses on diversity within its operations and its quest of medicinal discoveries. “United Therapeutics Corporation is a biotechnology company focused on the development and commercialization of unique products to address the unmet medical needs of patients with chronic and life-threatening conditions” (www.unitedtherapeutics.com, n.d.). Some of the benefits United Therapeutics offers is: Medical Plan (medical, prescription, dental, vision)
Onsite daycare center
Spouse/Domestic partner coverage
Stock Purchase Plan
Employee Referral Bonus
Amicus Therapeutics is also a biotechnology organization that employees over 200 employees. Their main focus is to engineer and develop treatments for rare and orphan diseases. Their total compensation package includes: Medical, dental, vision
Flexible spending accounts
The packages offered by these companies are very similar. The differences would be that United offers onsite daycare, stock purchase options and employee referral bonuses. Many of the basic benefits such as medical, flex spending and 401k usually is the most important benefit for most employees. Offering other fringe benefits will just help to retain the current pool of employees and any future employees that join the organization.
An attractive compensation package is important to appeal to prospective employees and to retain current employees. The total compensation package that is being offered has been compared to two other biotech organizations and is fairly similar and acceptable in this particular industry.
http://www.amicusrx.com. (n.d.). Retrieved from http://www.amicusrx.com/careers.aspx http://www.unither.com. (n.d.). Retrieved from http://www.unither.com/careers-benefits.html http://www.whitehouse.gov. (2013). Retrieved from http://www.whitehouse.gov/sites/default/files/uploads/careact.pdf