Medtronics Benefits and Compensation

OL-620-X5671 Total Rewards

Southern New Hampshire University

Introduction

        Medtronic offer its employees three different healthcare options ranging from $1,500 to $3,000 for single families and $3,000 to $7,000 for those with families. There are issues and concerns regarding those plans. Definity health’s plan consists of three elements: a personal care account, comprehensive healthcare coverage, and health tools and resources. HealthPartners and Medica Choice both are standard healthcare plans that require copays (Herzlinger, Bokser, & Hurwitch, 2014). Medtronic’s goal is to support employees to live better lives by having access to quality healthcare services.

Benefits and Compensation Analysis

Issues or Concerns

        When trying to consider the best possible plan the cost is important. Most employees had other needs to fulfill making it harder to afford healthcare. As a result, Medtronic launched a cost effective health insurance plan that’s about 80% covered by them. The number of enrolled participants increased during the launch from 1,300 to 4,040 in the coming years. With this new plan in place, employees are able to make better decisions concerning their personal healthcare. HealthPartners and Medica Choice were not offering the same things. Healthcare plans were normally a bigger concern for the older employees, but Ness was sure with this new plan it would attract the younger employees. However, a smaller number of young employees enrolled for the plan.

Consistent and Prominent

George, the former chairman of the board of Medtronic, acknowledged the need to attract new, young talent. The strategy recognized employee diversity and their needs with mentoring programs and career development initiatives that included continuing education, leadership training, values and ethics courses, flexible hours, and on-site child care centers. Furthermore, the organization empowered their employees by regular compensations resulting in an employee turnover rate of 15.3% (Herzlinger, Bokser, & Hurwitch, 2014).    

Targeted and Addressed

        Based on the provided qualitative data, one of the important issues are cost and quality healthcare services. The existing plans require employees to pay on their own if they choose to seek quality healthcare services. There’s a lack of a well-planned compensation program that addresses the compensation gaps but they have the ability to come up with an appealing compensation and benefit plan that everyone can benefit from.

External Benchmarking Data

        Contrasting HealthPartners and Medica Choice, Definity health provides detailed prices to employees, which allows the employees to choose their preferred physicians and drug options (Herzlinger, Bokser, & Hurwitch, 2014). The Definity Health plan involves monthly deductible of $1,500 for a single employee to $7,000 for family insurance. However, the other systems Health Partners and Medical Choice involves a deductible of $146 per month and $15 to $100 for every visit to a doctor. The deductibles; $3,000 to $7,000 for family coverage should be increased to $4,000 to $10,000 since some of the employees have bigger families that may consume large amounts of health services.  The amount deductible for single employees should be reduced from $1,500 to $3, 500 to $1,000 to $3,000 because they do not have added families to their healthcare plans.