Preview

The E-Sonic Compensation System: External Market Competitiveness

Powerful Essays
Open Document
Open Document
6558 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The E-Sonic Compensation System: External Market Competitiveness
.s

The e-sonic Compensation System:
External Market Competitiveness

LIR 561: Compensation Systems
Professor: Joe Martocchio
November 15, 2005

Team 1:
Ka Man Cheung
Christine Layne
Gene Paik
Tamica Taylor
Matt Williams

Table of Contents

1. Executive Summary 3

2. Pay-policy Mixes 6

a. Business Development Job Structure 6 b. Administrative Job Structure 7 c. Software Engineering Job Structure 8 d. Market Research Job Structure 9 e. Customer Service Job Structure 11

3. Pay-policy level decision 13

4. Compensation Survey 15

a. Choose competitors 15 i. Industry type: 15 ii. Employee number: 16 iii. Union Status: 16 b. Benchmark jobs 16 c. Reconcile differences between benchmark jobs and e-sonic positions 17 d. Update Salary data for inflation 18

5. Implementation of Salary Survey Results 19

a. Report and interpret results 19 i. Business Development 19 ii. Administrative 23 iii. Software Engineering 27 iv. Market Research 31 v. Customer Service 34 b. Integrate external and internal structures by creating pay grades and ranges 39 i. Decide upon number of pay grades 39 ii. Decide pay ranges 40 c. Evaluate and summarize decisions made for each job structure 43 i. Business Development 43 ii. Market Research 43 iii. Administrative 44 iv. Software Engineering 46 v. Customer Service 46

1. Executive Summary

The focus of this section of the analysis is to decide on the allocation of pay methods in order to motivate and retain employees while also achieving external market consistency. The first step was to decide on an allocation mix consisting of base pay, short term incentives, long term incentives, and benefits for each individual job structure. Factors such as importance to strategic goals, need for retention, long term impact, and skill level factored into this decision. The result was
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Alliston Instruments 2
    • 1441 Words
    • 4 Pages

    Alliston Instruments 2

    The base salary of the employees should have been based on external market data. The incentive program should have been focused on aligning the reward system to the company goals. The employees should be measured on overall performance on different tasks with minimal performance targets. This will help motivate employees and will not compromise with the quality of the products. Supervisors and managers should receive compensation with a long term equity incentives (stock), offered after 2 years employment. The compensation mix strategy should have been used.…

    • 1441 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Incentive Compensation Case Study
    • 513 Words
    • 3 Pages

    Incentive Compensation Case Study

    Finding the right incentive compensation program for our employees is very important to keep and to attract the best employees but we must make sure we have a solid plan to pay for it. Basing the incentive on customer satisfaction is important but it should also be tied into increased revenues. Compensation expenses may go up with the incentive program so we must have the revenue to pay for it or find other areas to pay for…

    • 513 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Rwt1 Wgu Business Report
    • 2510 Words
    • 11 Pages

    Rwt1 Wgu Business Report

    Within this business report, I have analyzed three different employee compensation strategies that I feel could be well executed within our organization. Employee compensation is key to recognizing and rewarding our employees for their performance and contributions to the overall company’s success. Because it is a signficiant factor, we need to carefully evaluate the three options in my report.…

    • 2510 Words
    • 11 Pages
    Powerful Essays
    Read More
  • Better Essays

    Holland Enterprises
    • 1807 Words
    • 8 Pages

    Holland Enterprises

    Increasing organizational productivity is important to any organization. “Managers know that simply paying employees more will not result in increased output and improved quality. They frequently find that employees who are overpaid or highly paid relative to others doing comparable work are sometimes less productive than their lower-paid peers or counterparts…Organizations realize that if they are to be more competitive, they must change this “I’m owed it” mentality to an “I earned it” mentality. A major opportunity available to organizations to bring about this change in attitude is to reduce the fixed part of compensation packages and increase the variable part. The variable components consist of all short- and long-term incentives and awards. The kind and amount of incentives and awards must be linked directly to desired employee behaviors, contributions, or results achieved. These incentives and awards comprise a pay-for-performance program “(Henderson, 2006). In other words Holland needs to have a system in place that rewards employees fairly while exciting them to provide the very best customer service to meet the demand of the business. “ Through the use of a fair and stimulating compensation system, Holland Enterprises can motivate their employees to complete their assigned tasks at the standards expected and in return the employee is compensated with a…

    • 1807 Words
    • 8 Pages
    Better Essays
    Read More
  • Good Essays

    Efficient Risk Bearing and Incentives in Compensation Plans
    • 310 Words
    • 2 Pages

    Efficient Risk Bearing and Incentives in Compensation Plans

    Efficient risk bearing hints that it is better to give employees fixed salaries, while incentive considerations lead to the conclusion that it is better to tie pay to performance. (Brickley, Smith, and Zimmerman, 2009). Thus a well-designed compensation plan should be able to reflect the trade-offs between these two.…

    • 310 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Pay for Performance
    • 1107 Words
    • 5 Pages

    Pay for Performance

    Traditionally, all incentive plans are “pay-for-performance” plans. They pay all employees based on the employee’s performance (Dessler). Compensation is a primary motivator for employees. People look for jobs that not only suit their creativity and talents, but compensate them both in terms of salary and other benefits accordingly. Compensation is also one of the fastest changing fields in Human Resources, as companies continue to investigate various ways of rewarding employees for performance. It is very important for organizations to make sure that the incentive plans are well structured to need the needs of the employee and in return make the organization profitable. Giving incentive pay to employees that has not earned them destroys the motivation and moral of employees which leads to less productivity. Thanks to public outcry, shareholder outrage, and increased government scrutiny, companies are making some adjustments to their executive incentive programs. At the very least, it gives the appearance of linking pay to performance.…

    • 1107 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Bus 409 Compensation Management
    • 948 Words
    • 4 Pages

    Bus 409 Compensation Management

    This paper will examine setting the stage for strategic compensation and bases for pay. There are three main goals of compensation departments: internal consistency, market competitiveness, and recognition of individual contributions. Internally consistent compensation systems define the relative value of each job among all jobs within a company. (Martocchio, pg. 22, 2011) With this system companies want employees to be paid more based on their qualifications and responsibilities. They believe someone with less experience should be paid differently. To determine such evaluation companies use job analysis in order to provide job descriptions. The job evaluation is to determine pay according to a particular position. Market-competitive pay systems attract and retain the most qualified employees. (Martocchio, pg. 22, 2011) By obtaining a strategic analysis and compensation surveys companies can determine who is most beneficial to the company based on the results. Strategic analysis examines long term growth and outlines the company’s profile to keep them in the market. Compensation surveys are collected and reviewed to determine different pay and which benefit packages are best needed. Compensation surveys are important because they enable compensation professionals to obtain realistic views of competitors’ pay practices. (Martocchio, pg. 22, 2011) Finally, recognizing individual contributions determines pay structures, pay grades, and pay ranges. The pay structures focuses on the difference in an employees’ contribution to company. With this structure it helps the company determine which employee has greater knowledge of the job their performing which leads to better pay. Companies with similar job groups use pay grades to determine compensation. Pay ranges start at the bottom and reach the maximum allowed depending on the job.…

    • 948 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Performance and Management
    • 1653 Words
    • 7 Pages

    Performance and Management

    The purpose of this report is to use the compensation system we previously developed in Phases I and II to pay people, develop plans that reward performance, add benefits into the mix, and evaluate these results. First we will look at performance-based-pay as a policy for recognizing employee contributions. Performance-based-pay is a pay plan that varies with some measure of individual or organizational performance, such as merit pay, lump-sum bonus plans, skill-based pay, incentive plans, variable pay plans, risk sharing, and success sharing. It is basically a pay plan that moves away from the traditional base pay and across-the-board increases, and focuses more on factors of performance that can increase overall productivity for a company. Performance-based-pay plans can be very effective in creating a positive impact in performance of both employees and a company as a whole, but only is the plan is designed well. In order to be successful, it is crucial that the performance-pay plan be designed to support FastCat’s business strategy and compensation objectives. To design this pay-for-performance plan, we will recommend a specific policy plan that is tailored to FastCat’s goals towards success. We will compare different performance-based plans, which include individual vs. group incentives and merit vs. incentive pay, to see which combinations will help FastCat compete more effectively.…

    • 1653 Words
    • 7 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Hrm 531 Week 3 Learning Team Reflection
    • 386 Words
    • 2 Pages

    Hrm 531 Week 3 Learning Team Reflection

    Companies today should mirror their compensation and benefit programs with their long- term business strategy and organizational culture. According to Casio (2010), “Pay systems are designed to attract, retain, and motivate employees” (p.421). The most important objective is fairness or to achieve internal, external, and individual equity; and maintain a balance in relationships between direct and indirect forms of compensation, and between the pay rates of supervisory and nonsupervisory employees. Employers must perform job analysis, develop job descriptions, evaluate the value of job/position in the organization, develop pay structure and pay levels to create competitive employee compensation and benefits (Cascio, 2010).…

    • 386 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    P1 Unit 6 Compensation Strategy
    • 342 Words
    • 2 Pages

    P1 Unit 6 Compensation Strategy

    A compensation strategy is one of the many human resources (HR) tools that organizations use to manage their employees. For an organization to receive its money’s worth and motivate and retain their skilled employees, it needs to ensure that their compensation system is not an island by itself. Not only is it important for an organization to link compensation to its overall goals and strategies, it is important that its compensation system aligns with its HR strategy. Let’s face it, if an organization is not paying its skilled employees what they are worth or at least the industry average, the chances are they will find an organization that will pay them for their talents.…

    • 342 Words
    • 2 Pages
    Good Essays
    Read More
  • Better Essays

    Hrm595Proposal Plan, Part Iv
    • 1096 Words
    • 5 Pages

    Hrm595Proposal Plan, Part Iv

    The most important part is the employees in this organization, and sadly the motivation is not up to par. Employees who lack motivation, insinuates that employees are not receiving proper rewards. Instead of management focusing on only one specific part of a department, they should rather work together towards a solid vision for the business. Presently, there is room for opportunity, to actually analyze the Human Resource Management system and see which problems which are leading employees to show lack of motivation. Through various researches, employees and outside sources, especially Human Capital Consulting organizations, believe that financial compensation is lower than market value. Employees do also not comprehend how pay interlinks with job performance. 20011 to 20012 surveys show that employees think that pay connects to seniority (Pulakos, 2004).…

    • 1096 Words
    • 5 Pages
    Better Essays
    Read More
  • Better Essays

    Market Based Management
    • 1053 Words
    • 5 Pages

    Market Based Management

    The concepts to be discussed throughout this paper will be incentives, compensation, and motivation. Incentives, compensations, and motivation are applied within numerous organizations to not only help increase employee performance, but to also help the longevity of the organization. If an employees’ overall performance increases, so will the company’s profitability. For instance if company A gives their employees an incentive to meet a certain sales quota…

    • 1053 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    Setting the Stage for Strategic Compensation and Bases for Pay
    • 1026 Words
    • 5 Pages

    Setting the Stage for Strategic Compensation and Bases for Pay

    There are many qualified individuals for jobs and companies have to be competitive in compensation to attract the most talented employees in the field. To achieve this market and compensation surveys are conducted to determine the rate of pay for a certain field. Many indicators are used to determine pay competitiveness such as competitors, marketability and long term growth prospects and the company’s strength in their field.…

    • 1026 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Performance-Based Pay as a Motivational Tool for Achieving Organisational Performance: An Exploratory Case Study Francis Boachie-Men
    • 5421 Words
    • 22 Pages

    Performance-Based Pay as a Motivational Tool for Achieving Organisational Performance: An Exploratory Case Study Francis Boachie-Men

    performance-based pay as a motivational tool for achieving organisational performance, using the situation in a…

    • 5421 Words
    • 22 Pages
    Good Essays
    Read More
  • Powerful Essays

    Variable Pay
    • 3778 Words
    • 16 Pages

    Variable Pay

    The main two reasons for the companies to implement variable pay plan are: motivating employees and reducing cost. In this paper we try to point out the challenges the organizations might face when they apply variable pay system by reviewing related literature. We find that it is difficult for the company to have a reliable measure for the variable pay system. In addition, the focus of the variable pay plan should be on motivating employees or cutting cost and how to strike a balance between these two is also an essential issue. Finally we conclude that we always have to assess the circumstances of the organization before applying the plan.…

    • 3778 Words
    • 16 Pages
    Powerful Essays
    Read More