Executive Compensation
According to the data that was provided in the case study of MedEx, a medical billing company, the high turnover rate of the specialists is one of the current challenges the organization faces (Martocchio, 2015). As the results of the survey completed by MedEx employees prove that one of the most significant reasons for the professionals’ dissatisfaction in the workplace is the process of everyday commuting to the office and rest of the problems that are related to this challenging activity. As the case study suggests that telecommuting is one of the most feasible options in the respective situation, it is possible to restructure the organizational process with a greater respect to the employees’ desires and needs, focusing on the implementation of telecommuting as the major recommendation.
In terms of the employees’ satisfaction with their salary, it is vital to distinguish between the notions of core salary and executive salary. The questionnaire proves that the professionals are satisfied with their core salary which is the exact amount of the financial assets which they receive as the remuneration, being paid for the execution of their professional commitments. Executive salary, in its turn, is the advanced concept of compensation. According to Goergen & Renneboog (2011), apart from the base salary, such compensation packages embrace additional payments such as the annual bonus, stock options, insurance, pension benefits, and severance pay (p.1069). Executive salary also includes paid expenses (perquisites), as well as the non-financial benefits, such as daycare, sick leave, vacations, and social security. In terms of recommendations for MedEx, the enforcement of the greater scope of telecommuting and support of the professionals who commute to the office on a daily basis can be regarded within the framework of executive salary. Those professionals who have to telecommute can be offered a special reimbursement of travel-related costs. An additional bonus can be paid to cover parking expenses. To those employees who mark that the major challenge for them is not a financial aspect, but a matter of commuting-related stress, the company can offer the coverage of taxi services or provide them with the tickets for the suburban trains.
As the employees claim that they aspire to enforce telecommuting, this initiative has to be supported by the company at the top managerial level. Telecommuting bears a wide range of benefits for the company. First of all, it can be regarded as the essential method of time management practices, boosting the employees’ flexibility (Harpaz, 2002). Telecommuting helps the workers to increase the actual time they dedicate to the execution of their direct responsibilities. As the nature of the company presupposes that the predominant majority of the employees are engaged in working with specific accounts, coding medical records, and entering them into the computer system, the professionals can work remotely from their homes or other places that are convenient for them avoiding heavy traffic that causes long commutes. The second substantial benefit of the implementation of telecommuting is the significant reduction of travel-related costs. The employees would …
