Exercise 70- Wagesim

Topics: Employment, Minimum wage, Wage Pages: 7 (1884 words) Published: July 23, 2012
Item 1
To: Mary Wallace-Vice President
From: Wage & Salary Division
Re: Request for pay increase/promotion
Susan Anthony sounds like she would be a good candidate for promotion. However, while Mrs. Anthony has the time in grade to be promoted, we require some more paperwork showing that she is proficient in the areas you have stated. Once we have received this paperwork we will be more than happy to endorse her for this promotion (Nkomo, Fottler, & McAfee, 2011).

Additional Action:
Follow up with Mary Wallace to make sure that the proper paperwork is delivered in order to promote Mrs. Anthony to Senior Assistant.

Item 2
To: Kelly Actor
From: Wage & Salary Division
Re: Request for pay increase
Mrs. Actor, while we value the years of loyal service you have provided the Mack Organization, we are unable to match the salary increase that you are seeking. The only increase that the company could consider giving you is a cost of living increase. If you send us your reviews, showing that you have received high review scores, we could then consider giving you a 3-5% cost of living increase based on the performance review ratings. Also sending us a letter of endorsement from your supervisor would be helpful in getting you this cost of living increase as well. Once again your continuous loyalty to this company is greatly valued, and appreciated, and we hope that you will consider this counter offer as long as all the paperwork is filled and meets the standard (Nkomo et al., 2011). Additional Action:

Follow up with Mrs. Actor to see if she has all the paperwork and necessary reviews in order to be considered for the cost of living increase. Also check with her supervisor and see if she recommends keeping Mrs. Actor in the company. Item 3

To: Jane Swenk, Supervisor
From:Wage and Salary Section
Re:Long-term employee wage dispute
Dear Jane,
Thank you for your questions regarding Ms. Scott’s concerns with her compensation and with our compensation policy. Currently employees are eligible to be considered for a pay raise after six months of employment. There are six possible merit increases available in each clerical role. You mention that Ms. Scott is currently an Administrative Assistant. There are two clerical roles that offer greater compensation opportunities, at the Senior Assistant and Executive Assistant levels. I am unaware if she has considered applying for a role with more responsibility, but that would be an option that she should consider. I understand her concerns though, and will recommend that management evaluate the current policy to determine if an annual bonus policy could be implemented. Thank you again for sharing this concern. Please encourage Ms. Scott to contact me directly should she have further questions.

Additional Actions:
Company should investigate the feasibility of offering a merit-based bonus to employees who have achieved the maximum wage within their position. This consideration would likely decrease turnover while increasing levels of employee satisfaction. Item 4

To: HR Director
From: Compensation Administration
Re: Payroll budget for next month
The projected payroll budget for the next four weeks is $416,912. This assumption is based on the average wage in each of the five clerical positions, calculated on a standard 40-hour work week. This budget is payroll only and includes no overtime allowances for these non-exempt employees. No employees will receive a merit increase during this month, as our annual merit increases are awarded uniformly at the end of the year. Additional Actions:

I would recommend that our budget forecasting occur earlier than a month in advance so that we have an opportunity to make adjustments as necessary. I recently had an opportunity to discuss a compensation issue with one of our supervisors and will be recommending to the management team that we create a “spot bonus” or merit bonus program for those...
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