Signature Assignment: Quantitative Reasoning, Introduced Level
CASE
In this assignment, your quantitative reasoning skills will be assessed at the introduced level. The Quantitative Reasoning rubric will be useful for this purpose. Then in HRM520 your quantitative reasoning skills will be further assessed at the reinforced level. Finally, in HRM599 your skills will be assessed at the emphasized level.
Case Assignment
This assignment requires you to:
1.    Complete 3 tablesone each for Health Care Costs, Absenteeism, and Presenteeism.
2.    Use relevant data from the 2018 Employer Health Benefits Survey for as many table categories as possible, such as annual health care costs, health insurance premiums, annual cost increases, and so forth. Some of the data needed for the three tables are not included in the survey. For those, you have the discretion to use relevant data from other reliable sources. The article Wellness ROI versus VOI contains additional information.
3.    To determine your quantitative reasoning skills, it is important you analyze, synthesize, and report your findings in a 3-page paper (not counting the title page, reference page or appendices). You do not need to complete all categories of the tables, but complete as many as possible. The basic requirement is to compile and plug-in sufficient data within each table necessary to analyze and report your findings.
4.    Feel free to use the same data for each table, but you should try to use examples of data that show significant differences when calculated.
5.    Follow this link to three calculators at https://www.wellsteps.com/blog/2018/01/10/wellness-roi-employee-wellbeing-programs/.

Watch the videos and use the calculators provided to calculate the possible impact on health care costs, absenteeism, and presenteeism of wellness programs. (Adobe Flash is needed to view the videos.)
Prepare three tables in Word to show the data you choose. Your tables should be set up like this:
Health Care Costs:
Health Care Costs:    Annual Health Care Costs    Annual Cost Increase    Number of Employees    % of employees obese    % that are smokers    Target percent obese    Target percent smokers
Example H1:                           
Example H2:                           
Example H3:                           
Absenteeism:
Absenteeism:    Annual Health Care Costs    Annual Cost Increase    Number of Employees    % of employees obese    % that are smokers    Target percent obese    Target percent smokers
Example A4:                           
Example A5:                           
Example A6:                           
Presenteeism:
Presenteeism:    Annual Health Care Costs    Annual Cost Increase    Number of Employees    % of employees obese    % that are smokers    % of employees 1 or more risk factor.    Target percent obese    Target percent smokers
Example P7:                               
Example P8:                               
Example P9:                               
Using critical thinking skills to prepare your narrative, you should summarize and analyze the data. Do not merely repeat the numbers from your tables without analyzing the findings and making recommendations for employers (and employees).
The paper you submit should include:
1.    Title page
2.    3-page narrative, complete with a strong introduction and conclusion. Bring in at least two sources develop the narrative. Include in-text citations following APA guidelines.
3.    References page: Include your reference list on the next page that follows your narrative. List each source on the References page in APA format.
4.    Appendices: Create three appendices, one each for Health Care Costs, Absenteeism, and Presenteeism. Include at least one graph to go along with each of the three tables (appendices). Refer to the specific example to which each graph belongs

BACKGROUND
We will be looking at the importance of determining compensation program effectiveness. There are basically two commonly used approaches to evaluate the effectiveness of HRMs total rewards practices: the audit approach and the analytic approach.
The Audit Approach
The audit approach focuses on reviewing the outcomes of the human resource compensation function. Key indicators and customer satisfaction measures are typically collected.
Electronic employee databases and information systems have made it much easier to collect, store, and analyze key indicators than in the past, when information was kept in paper files.
Some examples of key pay-related indicators include:
    Per capita (average) merit increases
    Ratio of recommendations for reclassification to number of employees
    Percentage of overtime hours to straight time
    Ratio of average salary offers to average salary in community
    Fairness of existing job evaluation system in assigning grades and salaries
    Competitiveness in local labor market
    Relationship between pay and performance
    Employee satisfaction with pay
Some examples of key benefits-related indicators include:
    Average unemployment compensation payment (UCP)
    Average workers compensation payment (WCP)
    Benefit cost per payroll dollar
    Percentage of sick leave to total pay
    Promptness in handling claims
    Fairness and consistency in the application of benefit policies
    Communication of benefits to employees
    Assistance provided to line managers in reducing potential for unnecessary claims
Many firms have gone to surveys of top-level line executives as a means of assessing HRM effectiveness. For example, relating this to total rewards, the top-level line executives can see how the total rewards system and practices are impacting both employees and the overall effectiveness of the firm from a strategic standpoint. They can also help determine how well HR employees perceptions of total reward program effectiveness align with the views of their line colleagues.
The Analytic Approach
In this approach, focus is placed on either:
a.    Determining whether the introduction of a total rewards program or practice (like a new benefit) has the intended effect. Usually evaluators are most interested in determining the degree of change associated with the program or practice.
b.    Estimating the financial costs and benefits resulting from a new compensation practice. In this approach, concern is placed on the dollar value (costs vs. benefits) of the new total rewards program or practice. For example, determining the effectiveness and cost-effectiveness of a wellness program might include:
o    Annual direct program costs, per employee per year
o    Percentage of cardiovascular disease risks (high blood pressure, overweight, smoking, lack of exercise) reduced or relapse prevented
o    Amount spent per 1% of risks reduced or relapse prevented

Once the total reward program or practice has been evaluated, HRM can explore how to improve its effectiveness in contributing to the competitiveness of the organization. There are several different ways HR professionals might attempt to improve the effectiveness of a total rewards program/practice:
o    Restructuring: For the total rewards/HRM function to contribute strategically to the firms effectiveness, the senior HR person must be part of the top management team.
o    Outsourcing: This entails contracting with an outside vendor to provide a total rewards product or service to the firm, instead of producing the product/service using employees within the firm.
o    Process Redesign/Reengineering: Completely reviewing critical work processes to make them more efficient and able to deliver higher quality total reward services. This may also include implementing new technologies (e.g., HRM information systems).
Sources:
Erfurt, J., Foote, A., & Heirich, M. (1992). The cost-effectiveness of worksite wellness programs.Personnel Psychology, (45) 22.
Noe, R., Hollenbeck, J., Gerhart, B., & Wright, P. (2006). Human Resource Management. New York, NY: McGraw-Hill Irwin.
Tsui, A., & Gomez-Mejia. (1988). Human Resource Effectiveness. Washington, DC: The Bureau of National Affairs.
Required Material
Aldana, S. (2018). Wellness ROI vs. VOI: The best employee wellbeing programs use both. Retrieved from https://www.wellsteps.com/blog/2018/01/10/wellness-roi-employee-wellbeing-programs/
Heathfield, S. (2016). Are you getting the best benefit from your employee benefits? Retrieved from https://www.thebalance.com/most-of-employee-benefits-1917723
Helios HR. (n.d.), What makes up a great total employee rewards package? Retrieved from https://www.helioshr.com/2013/11/what-makes-up-a-great-total-rewards-package/
Hipple, S., & Stewart, J. (1996). Earnings and benefits of contingent and noncontingent workers. Monthly Labor Review, 119(10), 22-30. Retrieved from the Trident Online Library.
Lawrence, T. (2012). Integrating contingent workers. Baseline, (114), 13. Retrieved from the Trident Online Library.
Pedulla, D. S. (2013). The hidden costs of contingency: Employers use of contingent workers and standard employees outcomes. Social Forces, 92(2), 691-722. Retrieved from the Trident Online Library.
The Kaiser Family Foundation (2018). Employer Health Benefits 2018 Annual Survey: Section 1: Cost of Health Insurance, pgs. 31-42. Retrieved from http://files.kff.org/attachment/Report-Employer-Health-Benefits-Annual-Survey-2018.