WGU D434 Task 1 | Passed on First Attempt
|Latest Update with Complete Solution
Serena Shrontz
A1. Three gaps in Sparkit’s total rewards plan compared to the market
offerings are as follows: they offer lower pay opportunities, their health and
welfare benefits are lacking, and they offer far fewer well-being benefits.
A1A. Sparkit’s competition is paying around 30% more than Sparkit, this
is a significant gap, which is holding Sparkit back within the competitive
markets. If someone is being offered $100,000 at a competitor or $70,000
at Sparkit, they’ll likely feel the pull toward the competitor.
Competitive markets offer well rounded health and welfare benefit
packages to their employees. For example, the competitive markets are
offering medical and vision plans with 90/10% coinsurance, their dental
plans are 80/20%. While Sparkit is offering 0/100% for vision, 50/50% for
dental and 70/30% for medical. These numbers alone would steer many
potential employees away from accepting jobs at Sparkit.
Market competitors are offering generous childcare, fertility assistance,
adoption assistance, student loan repayment, dependent tuition assistance
and health food canteen benefits. Meanwhile, Sparkit offers none of these
benefits to their employees. Also, the competitive markets are offering a
6% match for the 401K plans, which is a 4% increase from the 2% Sparkit is
offering their employees.
A1B. There are two areas that one could argue Sparkit’s total rewards
plan is stronger than competitive markets, they are: the HSA contributions
and life insurance.
The HSA contributions for Sparkit is $750, whereas the competitive markets
is $250. This $500 difference could be beneficial to potential employees.
Also, Sparkit’s life insurance policy is 3X the employee’s salary, up to
$250,000. The life insurance offered for typical competitive markets is 1.5X
the salary, up to $200,000.
B1. And B1A. There are four topic areas mentioned in the “Exit Interview
Data” for reasons by employees were exiting the company. The four areas
are variable pay, recognition, well-being, and benefits of the total rewards
plan. Below is a solution for each, along with the justification for the
solution.
, Variable Pay—I suggest increasing the variable pay option from the current
6.25% to the competitive market budget of 12% because the only way to
compete with the markets is to at least offer the minimum of what they’re
offering to potential employees.
Recognition—There are a number of ideas to increase recognition within a
company. If the benefits and pay offered is any indicator of the lack of
recognition within the Sparkit culture, no wonder employees are unhappy.
For this area, sometimes just a simple “Good work on that project, Bob.”
from a supervisor can go a long way. If Sparkit wants to keep their
employees, they must value and recognize their employees.
Well-being—Sparkit does not offer dependent tuition assistance, flex time,
paid parental leave, along with a laundry list of other important well-being
benefits. Competitive markets do offer these programs and benefits, along
with others, such as hybrid work options, childcare, student loan
repayment, they even offer fertility and adoption assistance programs.
Sparkit may not have the accessibility to implement all of the well-being
benefits the competitive markets are offering, however they can offer a
couple of them. They are currently not offering flextime. Flextime appears
to be a benefit which affects the company finances little to none. However,
offering flextime to their employees could be a vital way to show
appreciation and help the employees do that much better. For example, the
single mom who only has childcare from 11AM—8PM could work those
hours, while the husband with no kids could work 7AM—4PM.
During year 2 and 3, Sparkit will begin to offer a hybrid work option to
employees as well. It will be estimated to cost $50,000 during the year 2
and $20,000 during year 3.
Employees value these benefits and hold them as important, sometimes
even more important than the base pay being offered. They will work much
harder for the company, if they know they’re valued and appreciated.
Tuition Assistance and Dependent Tuition Assistance—Sparkit is not
offering these benefits, however the competitive markets are offering both
benefits. The cost annually for offering these benefits within the
competitive markets is $262,500 for tuition assistance of the employee,
while the dependent tuition assistance is $200,00 annually, up to $1000 per
dependent per year. This is assuming 50 employees will participate and 200
dependents participate.
|Latest Update with Complete Solution
Serena Shrontz
A1. Three gaps in Sparkit’s total rewards plan compared to the market
offerings are as follows: they offer lower pay opportunities, their health and
welfare benefits are lacking, and they offer far fewer well-being benefits.
A1A. Sparkit’s competition is paying around 30% more than Sparkit, this
is a significant gap, which is holding Sparkit back within the competitive
markets. If someone is being offered $100,000 at a competitor or $70,000
at Sparkit, they’ll likely feel the pull toward the competitor.
Competitive markets offer well rounded health and welfare benefit
packages to their employees. For example, the competitive markets are
offering medical and vision plans with 90/10% coinsurance, their dental
plans are 80/20%. While Sparkit is offering 0/100% for vision, 50/50% for
dental and 70/30% for medical. These numbers alone would steer many
potential employees away from accepting jobs at Sparkit.
Market competitors are offering generous childcare, fertility assistance,
adoption assistance, student loan repayment, dependent tuition assistance
and health food canteen benefits. Meanwhile, Sparkit offers none of these
benefits to their employees. Also, the competitive markets are offering a
6% match for the 401K plans, which is a 4% increase from the 2% Sparkit is
offering their employees.
A1B. There are two areas that one could argue Sparkit’s total rewards
plan is stronger than competitive markets, they are: the HSA contributions
and life insurance.
The HSA contributions for Sparkit is $750, whereas the competitive markets
is $250. This $500 difference could be beneficial to potential employees.
Also, Sparkit’s life insurance policy is 3X the employee’s salary, up to
$250,000. The life insurance offered for typical competitive markets is 1.5X
the salary, up to $200,000.
B1. And B1A. There are four topic areas mentioned in the “Exit Interview
Data” for reasons by employees were exiting the company. The four areas
are variable pay, recognition, well-being, and benefits of the total rewards
plan. Below is a solution for each, along with the justification for the
solution.
, Variable Pay—I suggest increasing the variable pay option from the current
6.25% to the competitive market budget of 12% because the only way to
compete with the markets is to at least offer the minimum of what they’re
offering to potential employees.
Recognition—There are a number of ideas to increase recognition within a
company. If the benefits and pay offered is any indicator of the lack of
recognition within the Sparkit culture, no wonder employees are unhappy.
For this area, sometimes just a simple “Good work on that project, Bob.”
from a supervisor can go a long way. If Sparkit wants to keep their
employees, they must value and recognize their employees.
Well-being—Sparkit does not offer dependent tuition assistance, flex time,
paid parental leave, along with a laundry list of other important well-being
benefits. Competitive markets do offer these programs and benefits, along
with others, such as hybrid work options, childcare, student loan
repayment, they even offer fertility and adoption assistance programs.
Sparkit may not have the accessibility to implement all of the well-being
benefits the competitive markets are offering, however they can offer a
couple of them. They are currently not offering flextime. Flextime appears
to be a benefit which affects the company finances little to none. However,
offering flextime to their employees could be a vital way to show
appreciation and help the employees do that much better. For example, the
single mom who only has childcare from 11AM—8PM could work those
hours, while the husband with no kids could work 7AM—4PM.
During year 2 and 3, Sparkit will begin to offer a hybrid work option to
employees as well. It will be estimated to cost $50,000 during the year 2
and $20,000 during year 3.
Employees value these benefits and hold them as important, sometimes
even more important than the base pay being offered. They will work much
harder for the company, if they know they’re valued and appreciated.
Tuition Assistance and Dependent Tuition Assistance—Sparkit is not
offering these benefits, however the competitive markets are offering both
benefits. The cost annually for offering these benefits within the
competitive markets is $262,500 for tuition assistance of the employee,
while the dependent tuition assistance is $200,00 annually, up to $1000 per
dependent per year. This is assuming 50 employees will participate and 200
dependents participate.
