Structuring Benefits to Motivate Employees

Read the following article on motivating employees:

“Motivating People: Getting Beyond Money” by Dewhurst, Guthridge, and Mohr (2009)…

Review the Special Topics: 1) Motivation and Behavior 2) Compensation and Benefits and 3) Cost of Benefits as needed. Your textbook can also be used as a source of information.

The Scenario

Assume that you are the new CHRO of a 450 bed, metropolitan full-service hospital with over 1,800 employees — Congratulations! In spite of ranking at the 50thpercentile for wages in the area (there are 3 other hospitals within 10 miles of your facility), morale among employees is at an all-time low. A recent employee survey revealed the poor morale as well as a high rate of burnout. (In fact, 30% of the nursing staff admitted to currently looking at other jobs.) Staff turnover during the past 2 years has been about twice the previous rate and absenteeism was up 50% over the same time period. The last COO introduced an employee “flex time” plan that saved the hospital 15% in wage costs by sending employees home when the patient census was low. (Of note, 70% of nurses managed to consistently work a 40-hour week last quarter.) This program gives all employees 3 days of personal time/sick time.

Current employee benefits include a small life insurance policy, a 401k plan (no matching) and health insurance for employees, but not spouses or dependents. No other insurance or benefits are currently offered. (80% of employees have a “significant other” and 55% have at least one child between 1 and 12 years old.)

Demographics and more information:

Current Workforce (excluding physicians)

Boomers – 30%

Gen X – 40%

Millenials (Gen Y) – 25%

Gen Z – 5%

Minimum Wage Workers are 15% of the workforce and their current average pay rate is $10/hr. The majority of these workers are in food service, housekeeping, patient transport, clerical and medical assistants.

The Assignment

As the CHRO, you have been tasked with designing a total compensation program to fix the mess you have inherited. The hospital has given you a budget to work within and some options to choose from, which are summarized below.

Item Description Relative Cost Points

Wages Increase for all salaried and professional employees

to 65th %-ile 4.0

Min Wage Increase Min Wage to $12/hr 2.0

Increase Min Wage to $15/hr 3.0 (accompanied by a

5% lay-off)

PTO Increase PTO to 7 days/yr 1.5

Increase to 10 days/yr 2.5

Extended FMLA (12 weeks paid) 3.0

Insurance Add spouse/dependent coverage 2.5

Add life insurance upgrade 0.5

401k Add 3% match 2.5

Add 6% match 4.0

FSP Flex Spending Plan – includes

Dental, optical, meds 1.5

Education Tuition supplement – current semester 2.0

Student loan repayments –

(Pay off 30% of balance, up to $12,000) 3.5

Child Care Cover 30% of cost for employees 2.5

Offer On-site day care for all employees 4.0

Required: Describe in detail the total compensation package you will recommend to the CEO, keeping your total cost at or below 13.0 Relative Cost points. If you can bring a plan that is 12.0 Relative Costs points or below, you will personally receive a $10,000 bonus – which will remain confidential. You are not allowed to create alternatives through extrapolation, e.g., “add 401k match at 4% for 3.5 Relative Cost points” nor propose items not listed above that bring with them any significant cost.

Be certain to discuss why you have selected each of the compensation and benefit features included in your recommendation. This discussion could include the importance of the proposed feature to a group of employees (ex: nurses), a generation of employees (ex: Gen X), or the Hospital itself (ex: marketing, recruiting, etc.).

Word limits – 1,000 word minimum, 2,200 word maximum

I do NOT want you to follow strict APA guidelines, but you must pinpoint precisely what specifically you drew from your reference(s) to support the points you are making. In other words, you must link your reference(s) directly to your text. Examples follow below. Do NOT number pages, nor use a title page, abstract or Table of Contents. Do not use headers and footers or a running title.

The main things required of you are 1) write in complete sentences; no bullet point lists or sentence fragments. 2) Avoid an abbreviation unless you explain it to your reader the first time you use it. 3) Use proper punctuation and grammar – “Let’s eat, Grandma” and “Let’s eat Grandma” do NOT mean the same thing! You are not texting your audience. Rather, you are making a semi-formal presentation to your CEO. 4) List your references under a “References” section at the end of the paper, alphabetized by the first author’s LAST name.

You must provide at least two (2) references in support of your paper. You may cite our textbook or any of the materials I have provided in the course. However, at least one of your references must be from a source in the literature that you have researched. You do NOT need a reference for each point you make but. provide at least two references as described above.

Examples of using references:

Suppose you wish to use the reference below to support your paper:

Jones AR, Smith DA (2017) People are Still Crazy, Yo. Harvard Business Review, April-May, pp. 9 – 26).

And here is the author’s statement from page 17 of the article that you want to reference in your post.

“People who show their undergarments in pubic are generally assumed to be unstable, at the least.”

Some options for how to present this in the text of your post would be:

A) You want to paraphrase the author’s comment but not use a direct quotation

According to Smith & Jones (2017), people who wear underwear in public are crazy. I think everyone agrees with that statement.

Many experts feel that people who choose to wear underwear out in public are unstable (Smith & Jones, 2017).

B) Suppose you wish to use a direct quote. Therefore, you must use quotation marks and give the page number where quoted words were drawn.

According to Smith and Jones, “People who show their undergarments in pubic are generally assumed to be unstable, at the least”. (2017, p.17)

In 2017, Smith & Jones proposed that “people who show their undergarments in public are generally assumed to be unstable, at the least.” (p. 17)

If you reference a webpage or internet source that doesn’t list an author, you may alphabetize the source in your list of references by the journal name (Wall Street Journal) or website name ( Be certain to cut and paste the link into your reference so others may also find it.

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