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Managing Nonmonetary Compensation

Executive Summary Background and Introduction Andrew Nelson, an accomplished respiratory therapist, works for Breathing Care Associates, and works out of the local hospital. High turnover, lack of managerial skills, and trying to lower labor costs has lead Drew to work many hours over his normal hours. He is an exempt employee and is not entitled to overtime, but he does get a dollar an hour for on-call services. Andrew has met his maximum “earned time” off and is in need of a vacation, but is denied because of staffing and the unwillingness of his supervisor to pay overtime to the non-exempt employee.

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Main Conclusions Andrew needs time off before he gets too “burned out,” but also needs to make sure the hospital is covered for the time he is going to be off. The concerns of his supervisor as well as his only other employee need to be taken into consideration. Recommendations Andrew Nelson is entitled to time off, so he needs to convince his supervisor of other alternatives to getting the time off. It is suggested by the team to hire an outside temporary agency for that week.

Not only will Andrew be able to get some much needed time off, but it will alleviate the other employees’ fear of working seven days in a row. It would also be in Mr. Barnes’ (Andrew’s supervisor) best interest. He doesn’t want any more turnovers, especially when he only has two therapists. Table of Contents Executive Summary1 Background and Introduction1 Main Conclusions1 Recommendations1 Managing nonmonetary compensation 2 Introduction3 Background3 Alternatives4 Limitations, Conclusions and Recommendations5 Hospital Obligation 6 Bibliography8 Managing Non-monetary Compensation

Introduction Andrew (Drew) Nelson is an exempt employee and the supervisor of a respiratory therapy department and because of recent turnovers and his bosses demand for decreased labor costs; he has worked an abundance of hours over his regular hours. Drew needs some time off to regroup, and has accrued his maximum of “earned time”, however, he has been denied his vacation request (Nkomo, 222). According to his supervisor (Matt), it is unfair to make Barb (the only other therapist) work seven days in a row and, in addition, does not want to pay overtime to Barb.

Barb is also unwilling to work the hours even though Drew has done it for her in the past. We (Team C) will discuss Drew’s alternatives, recommendations, and the obligations of the hospital to exempt employees, in the following this paper. Background Drew Nelson has an accomplished educational background in respiratory therapy, but doesn’t have the “formal management” skills he may need for his position as supervisor of the respiratory therapy department (Nkomo, 222). Drew Nelson is employed by Breathing Care Associates, and works out of the two local hospitals, that is, until one of them closes for “economic reasons. Drew oversees four subordinates, but in the past two months three of the four have quit or resigned leaving Drew and another (Barb) to handle the demands of the department. Drew has been asked by his supervisor to lower the labor costs in his department. His lack of management skills leads Drew to pick up the slack, which will lower the labor cost. He is an exempt employee, which is an “employee to whom employers are not required to pay overtime under the Fair Labor Standards Act,” and Drew has put in 140 hours over hours over his regular time (Mathis, 337).

Drew has asked for time off but has been denied his request because of the low staffing and the unwillingness to pay overtime to the only other therapist. Drew cannot fall back on the labor union as he doesn’t belong to one; however, the hospital does have a “bargaining unit” (Nkomo, 222). Alternatives The earned time accrual and use policy does not guarantee Nelson his requested time off. The policy states that supervisors will consider staffing and operations before approving a vacation request (Nkomo 224).

On the other hand, the policy does not limit the amount of time a person can request off and it does allow an employee to accrue up to 62 days if they have worked for the company more than 4 years. The company may want to consider revising their policy to limit the number of days an employee can request off each time. Employers must constantly review and revise their handbook and policies to keep it up to date with changes due to changes in operations of the company (West HR). One alternative is for Nelson to talk to Barb and his supervisor and kindly remind them that he worked seven days the summer before so she could be on vacation.

Maybe Barb would reconsider working extra to cover, after talking to Nelson. Another alternative would be for Nelson to take off the just number of days his supervisor will allow, or Nelson does have the alternative to call in sick. Also, another alternative would be for Barb to work her normal schedule and Mr. Barnes (Matt) to work Nelson’s hours as he is an exempt employee as well. There is also the alternative of hiring an outside temporary service for that week as another option.

Yes, they would be paying an outside service, but this alternative would alleviate Barb’s concern of working seven days in a row; the hospital would be covered in the event of 24 hour service; Drew would get his much needed/deserved vacation; and what the supervisor would be paying in overtime he would pay a set rate to an outside source. This alternative would be worth the sanity and morale of his crew. Regardless of what Nelson decides to do, he should talk with the HR department about the staffing issues, and the fact that he has been taken advantage of over the last year. Recommendations

Matt Barnes stated, “I really can’t let you take off right now. I can’t force Barb to work seven days in a row. Besides, if she did, I’d have to pay her overtime. ” (Nkomo, 223) Afterwards Matt ended the conversation immediately following his statement. Within the last 8 months, Nelson has covered the shifts for 3 employees that were not available. Nelson has worked 6 days per week between the hours of 8 to 12 hours a day. Nelson also worked when he was “on call” during his shift with no overtime pay. The guidelines from BCA’s policy for earned time were to give the manager at least two weeks notice.

Nelson provided his manager with one month advance notice of his vacation. Under earned time, “When you near your account Maximum, it is your responsibility to schedule Earned Time off. ” (Nkomo, 224) Nelson followed the regulations that were implemented by the bargaining unit. We have mentioned several alternatives, and outside of losing his job for insubordination all the other alternatives could work. Determining which would work best for all parties is difficult. Reminding Barb and Mr. Barnes about him previously working a week for Barb the summer before could backfire. Yes, he worked for her but they also had three other employees.

Drew could see how many days Mr. Barnes would give him off, as something is better than nothing; however, he does compromise his right to have time off. Drew could ask Mr. Barnes to work his days for him or split them with Barb, but Mr. Barnes is sometimes not seen for months at a time, and the likeliness of Mr. Barnes doing it is minimal. Hiring a temporary service is an option that will alleviate Drew’s and Barb’s issue, but not necessarily Mr. Barnes financial issue; however, it will keep the morale of the employees up and they won’t feel burned out. The recommendation of Team C would be for Mr.

Barnes to hire a temporary service for the week. There are several temporary agencies that will accommodate the need of the respiratory therapy department. Respiratory therapists will work for a per diem, which means per day for a set amount. If Mr. Barnes wants to keep the morale of his employees up, and reduce his turnover rate he will accommodate Nelson with his request because of his hard work and dedication to his job. Hospital Obligations The hospital administration is not obligated under any law to grant Nelson vacation time, however they are obligated to keep employee morale up and avoid the loss of more employees.

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