Employees at Medtronic’s will be affected with any changes in their health care insurance. Putting the concern at ease of the employees should be a priority. Communication will be essential in getting the proper information to all employees. The information can or will be in a form of literature through email, or mail or face to face interaction with HR personnel. Educating employees on the new benefits and price comparing will be crucial for employees to make an informed decision.
Since Medtronic’s has a diverse group of employees of all nationality, ages and family dynamics, and all employees’ situations are different it is a guaranteed that not everyone will be accepting of the changes but offering different options will encourage employees to take advantage of the new health care plans.
Medtronic’s is no exception to the constraints that all business must adhere to. The noticeable constraint of requiring that all business offer voluntary benefits. “Government and industry have come to realize the benefits that could be obtained through such business models.” (Mulin, 2013) Medtronic’s HR department must understand the consequences if the legal required benefits are violated in anyway.
The government mandated requirements as well as some individual states in regards to benefits that need to be offered by companies to its employees are as follows, unemployment insurance, workers compensation, social security benefits, overtime pay and minimum wage. (Taylor, 2018) State requirements may differ from federal mandates. Some states are required to provide short- and long-term disability insurance. “The Small Business Administration advises that the following states now require disability insurance to provide partial wage replacement to eligible employees if they have experienced nonwork-related accidents or sickness: California, Hawaii, New Jersey, New York, Puerto Rico and Rhode Island. (Taylor, 2018)
Cost is another constrained business are dealing with in todays business world. If a business is offering a substantial amount of benefits it will be costly for the employers. “Providing benefits costs more for small employers than for large ones, both in terms of higher prices because of lesser buying power, and due to relatively higher costs of administration.” (Pro and Cons: Offering Employee Benefits, n.d.) Offering these benefits can increase year by year. “the cost of health insurance has steadily risen, making it less and less affordable to employers, and making financial planning difficult from year to year ” (Pro and Cons: Offering Employee Benefits, n.d.) The legality is “Offering benefits creates concerns regarding legal compliance, which in turn causes a company to incur legal fees.” (Pro and Cons: Offering Employee Benefits, n.d.)
With all the constraints listed above the overall factor in making an informed decision will be the cost of offering benefits to its employees, even if the required or not. An Human Resource Information system will need to implemented to assist with the day to day operations of the business.” A HRIS allows a company to plan its HR costs more effectively, as well as to manage them and control them without needing to allocate too many resources toward them.” (HRIS, n.d.) HR, payroll, accounting, operations are all tied up into an HRIS system, there are other modules that can be purchase to better assists other departments of the organizations. ” A range of popular modules are available, including those for recruiting, such as resume and applicant management, attendance, email alerts, employee self-service, organizational charts, the administration of benefits, succession planning, rapid report production, and tracking of employee training” (HRIS, n.d.) Implementing this system in the business will alleviate some of the legality with constraints placed on the business.