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
  • 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
  • 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

    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
  • Satisfactory Essays

    'Business Case Study Of Command Audio'
    • 171 Words
    • 1 Page

    'Business Case Study Of Command Audio'

    Don Bogue and John Ryan saw a tremendous commercial opportunity in Command Audio (CA), but business model failed due to flawed logic, limited strategic choices, imperfect value creation and capture assumptions, and incorrect assumptions about the value chain. CA was entering a situation within the market place that had never existed previously, and presumed vital factors and results that never materialized. CA had faulty “logic” when they presumed they were creating value for consumers. CA’s business model, product, and service was “disruptive” technologically and socially in how consumers normally consumed radio, which consumers did not find valuable and regarded CA as an undesirable product/service. CA was experiencing a damaging customer…

    • 171 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Powerful Essays

    Job Analyis & Compensation
    • 3835 Words
    • 16 Pages

    Job Analyis & Compensation

    Throughout the course of this semester, compensation systems and methods have been evaluated to determine how the compensation processes are utilized to attract and retain employees. Compensation is not only a monetary benefit, but also includes indirect benefits such as insurance, paid time off, disability leave, etc. Both direct and indirect benefits make up a compensation package. Within this paper, similar positions from the private, public, and military sectors have been evaluated with like roles and responsibilities to compare the compensation packages. The following positions have been chosen: Chief Financial Officer for private sector; State Comptroller for the public sector; and Director of Army Budget Office for the military sector. Several factors of the compensation system have been included such as the job analysis, job description, comparable work salary survey, market pay line, pay range, a comparison of each position, an analysis of the differences in compensation, and a career suggestion for a young professional. All of these factors make up the compensation system providing data and analysis to define a compensation package for each position.…

    • 3835 Words
    • 16 Pages
    Powerful 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
  • Better Essays

    Hrm 531 Employee Compensation Paper
    • 1310 Words
    • 6 Pages

    Hrm 531 Employee Compensation Paper

    Employee compensation can be a very complex issue in any organization. This area combines basic human resource concerns as well as financial aspects of the organization. When dealing with compensation, an organization must balance the employee’s expectation and its own financial abilities. Employee compensation not only covers the salary but also includes other indirect benefits that may be part of a total compensation package. Compensation packages are set up to appeal to potential employees within a competitive business world. In other words, “compensation is the total of all rewards provided employees in return for their services. The overall…

    • 1310 Words
    • 6 Pages
    Better Essays
    Read More
  • Better Essays

    Internal and External Equity Comparison Paper
    • 1068 Words
    • 4 Pages

    Internal and External Equity Comparison Paper

    Organizations that has the drive to flourish in a market that is very competitive must have a compensation plan that is well designed and inspires its employees, has benefit programs, guarantees equity, and handles compensation costs. These plans should mirror the culture of its employees. Organizations have numerous of options when designing a compensation plan comes into play, and must consider how the options they have chosen will be suitable for their strategy for engaging and keeping their employees. This paper will identify a total compensation plan for an organization, identify the internal and external equity advantages and disadvantages, and provide and explanation on how each plan supports the total compensation objective and the relationship to its financial situation.…

    • 1068 Words
    • 4 Pages
    Better Essays
    Read More
  • Better Essays

    Strategic Compensation and Bases for Pay
    • 784 Words
    • 3 Pages

    Strategic Compensation and Bases for Pay

    The first goal in the compensation department is to attract and retain the best possible work force considering the resources of the organization, internal consistency. Internal consistency supports work flow, fairness and directs behavior toward organization objectives. It also consists of job analysis and job evaluation. Job analysis “is a systematic process for gathering, documenting, and analyzing information in order to describe jobs. Job analyses describe content of job duties, worker requirements, and sometimes the job context or working conditions” (Martocchio, 2011). Job evaluation is a useful technique, intended to assist trained and experienced staff to evaluate the size of one job relative to others.…

    • 784 Words
    • 3 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Sound Technology
    • 639 Words
    • 4 Pages

    Sound Technology

    3. Timbre is the tone that an instrument or a group of instruments is making. It usually determines what instrument is being played. Timbre is created due to the overtones generated by a specific instrument.…

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

    Aflac's Three Components Of Compensation
    • 1673 Words
    • 7 Pages

    Aflac's Three Components Of Compensation

    Due to globalization and specialization, talented and desirable employees are a commodity. Companies compete with other companies in the current hiring market using compensation packages to attract these employees. Total compensation (or components thereof) is perhaps one of the leading reasons for a person to choose one company over another. For some, compensation is the sole reason for engaging in employment while others are more interested in the benefits. Gomez-Mejia, Balkin, and Cardy (2016) explain compensation (notably the greatest expenditure for most companies) has three components: the base rate (a fixed amount paid on a regular interval), incentives (performance reward system), and benefits (indirect financial remuneration).…

    • 1673 Words
    • 7 Pages
    Good Essays
    Read More
  • Best Essays

    Human Service Problem: Fast Takeover Rate In Nurses
    • 2238 Words
    • 9 Pages

    Human Service Problem: Fast Takeover Rate In Nurses

    Meanwhile, the said program for employees should provide changes based on performance, promotion or changing conditions and provision of regular remuneration and performance reviews is considered essential. Similarly, incentives remuneration such as giving bonuses as discretionary rewards for achieving targets can also heighten the determination of employees to work. Gerhart and Rynes (2003) support the idea that individual incentives can generate substantial increases in performance. On the other hand, benefits can also be given to compensate salary costs such as health care plans, life insurance and retirement benefits. The remuneration program should be aligned to both the organisation’s strategic objectives and employee needs and must be supported by the human resource department to attract, retain and motivate employees within the…

    • 2238 Words
    • 9 Pages
    Best Essays
    Read More
  • Good Essays

    Employee Satisfaction
    • 433 Words
    • 2 Pages

    Employee Satisfaction

    Long-established rewards systems usually have had a large proportion of the total package as base pay and just a small portion tied to performance. In today’s world new and more strategic rewards systems, have come to be implemented which are more aligned with overall organizational strategies. These new rewards include a performance based variable pay, skill base pay and recognition pay. In researching this new trend it has been shown to have a very positive effect on employee productivity and firm performance.…

    • 433 Words
    • 2 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

Related Topics