Compensation

Compensation

In the current module we are covering the creation of grades. What you need to do once you get through this material is to break your order into grades. The ways to do this are covered in one of the mini-lectures in the current module.
Next you need to develop job comparison hueristics. Most organizations develop 4. They can be 1-star, 2-star, 3-star, 4-star, or excellent, good, fair and poor. You can call them just about anything as long as you define what those terms are. For example, 4 star could be the job is nearly identical. 3 star could be the jobs perform most of the same tasks. I think you get the idea. What you do not want to do is say that a job is a 100 percent match, 75 percent match, etc. I am not sure how one would ever be able to determine such a comparison.
Once you have stated and defined hueristics, you then need to identify wage data. Your first choice of comparison wage data should be the CIHRG salary survey document that is in the project folder in the student drive. Try to find matches for jobs here first. You need to look at your job description and using your heuristics decide how you would classify your job as a comparison. Here is something you need to know. You only need one comparison for each job you have, you will need the comparison’s job description (which brief ones are in the salary survey, and the job’s salary data). Furthermore, you do want to find what would be 3 and 4 star comparisons if at all possible.
If you cannot find this information in the attached file then you can go to salary.com and conduct a search. If you do this you may have to use a variety of terms to get a decent comparison. For example, you might not find a good comparison for QIS manager. You may have to use a different set of terms to get at what the job is really about. All organizations use different titles. Do not focus on the title, focus on what the job is about. You will need to print out the job descriptions and data. Also, when using salary.com you want to use one of two zip codes. Use either 61701 or 61761. These are the two dominant zip codes where The Baby Fold is located.
All wage data in salary.com is current, but you want to get those screen shots/printouts as this data can change daily. For data obtained from the CIHRG salary survey you will have to adjust that data for the age of the data. The salary survey tells you when this data was collected. In the written instructions for phase 2 I have provided a website that will take you to an inflation calculator you can use for adjusting the wages. You will likely have to look around the website a bit to get to it, clicking to links within it, as it has changed. You definitely want screen shots of everything you are doing. There will be a lot of documentation associated with this phase of the project. The good news is that there are several tools you can use that make life a bit easier, but you need to document for each job how you arrived at a current wage for it, labeling what data/screenshots are associated with each job. These screenshots and printouts from the salary survey, the inflation calculator and salary.com, including the brief job descriptions for the comparison jobs, will all need to be in appendices as supporting documentation. It is simplest to gather this as you finding the comparison jobs. To summarize, you need to break you order into grades. You need to develop comparison heuristics. You need to find comparison jobs and keep all documentation of such, as well as the key information outlined (salary data, job description). You need to adjust any job comparisons for jobs found in the CIHRG salary survey for the age of the data using an inflation calculator. Essentially you are gathering all of the raw data at this point.
Here is all the jobs in my project. But I only need to do 5 of 16 which is
Controller
Cook
Director of Finance
Facilities Manager
Family Center Receptionsist
1. Director of Finance 1310
2. Controller 1140
3. QIS Manager 1120
4. Info Systems Mgr. 995
5. Food Service Supervisor 805
6. Quality Specialist 785
7. Software Application and Training Technician 775
8. Facilities Manager 710
9. Info Systems Tech 600
10. Family Center Receptionist 545
11. Payroll and Benefits Specialist 505
12. Switchboard Operator 480
13. Finance Specialist 470
14. Maintenance Asst. 435
15. Cook 325
16. Housekeeper 300

Hint 2:
Once you have completed the tasks/steps I outlined you are now in a position to calculate midpoints for each of your grades. Please note that you only want to use job data you have information on that is good, meaning that if you have a 4 start system you only use 3 or 4 star quality data. If you are using some other sort of heuristics, use only the solid data (i.e., top two categories). If you do not use data from a job because you do not have a good match you still keep the job in the grade.
Once you calculate your initial midpoints you can create an initial structure (you are required to provide this in your project, see your project instructions). Most likely the structure will not be smooth. You will need to take steps, as covered in the calculations in the prior module, to smooth the structure.
ADDITIONAL INSTRUCTION:
This portion of the project focuses on comparisons to the external market relevant to The Baby Fold. As such, you need to analyze external wage data from the salary survey that you have been sent, and need to combine internal and external equity data in some manner. You should rely on the surveys you have, but if you need to you can use the salary.com website. Be sure you point out which survey is used for each position and why that survey was used. If you used salary.com, you need to specifically state as appropriate which jobs used this information and the shortcomings of the information.

Mechanics/steps to complete the project

First, you need to break your order up into grades.

Second, you need to find comparison jobs. This also means developing match quality heuristics. For example, 4 star, 3 star, 2 star and 1 star. When you develop these you need to define what each one is.

Third you need to find wage data for each of the comparison jobs. Your best/first choice is data from CIHRG. If you cannot find a match from CIHRG, you can use salary.com data. Details of this data are provided in the next paragraph. You need to print out job descriptions and wage data for the jobs found as comparison jobs and include these in an appendix. For any jobs you found data from CIHRG, you need to use the 50th percentile. This is the same as the median, just a different term for it. This data you will need to adjust for age. Go to the following website to adjust the wages: http://www.halfhill.com/inflation.html Put in the starting year of 2008 and the ending year of 2013. Hit calculate and it will adjust the age for you. You will need to print out each of these screens. Also, click on the show rates button once to copy and paste the specific inflation information associated with these calculations. Once you get all of these converted, you can then calculate the monthly salary for each of these positions by multiplying each resulting wage by 173.33. Again, show all of your work and documentation. Note: You can calculate monthly prior to adjusting for age if you like or have already done it in that order.

Still part of the third step, if your job match is from salary.com, you need to know that this data is up to date. It is in the form of annual salary so you need to divide this by 12 to arrive at a monthly salary. You need an appendix showing these calculations. You also need an appendix to show all printout of all of your comparison jobs information from salary.com. This means that you need to provide the job descriptions and wage data for the comparison jobs found on salary.com, again including them in an appendix.

Fourth, you can now calculate the midpoints of your grades. We do not calculate midpoints for jobs, but for grades. So, for example, if you have 3 jobs in a grade you add up their wages and then divide it by 3. Here is where you have to consider the match quality. If you have 3 jobs in a grade but the match quality of one of them is not good (i.e., in the two lowest categories), then you keep the job in the grade at this step, but calculate the midpoint based on the adding the wages from the two jobs with good matches and then divide it by 2.

particularly for the CIHRG salary data, there is a link to an inflation calculator. Combining this with the Phase 1 hints you can use the information at the website to adjust for the age of the data, as outlined in the instructions.
Here is a key to doing this. Once you link to the website, in the top paragraph it has some hyperlinks. Select the “JavaScript version” hyperlink. Keep copies, screeenshots, snipits, etc., of any of these conversions as you will need it for documentation of your data. You will need to indicate for which job each conversion is for.

This one does later. No need to do it now

Fifth, you can now draw your initial diagram. It will only be the midpoint line. There is no maximum or minimum for any of the grades at this point.

Sixth/seventh steps. You can do these in either order. You need to smooth your grades based on the information covered in class. Again, show your work in an appendix. Only describe and show work for grades that were smoothed. If grade 1 and 2 were not affected, there is no work and nothing to report or document. Then you can adjust based on your strategy. This is where the second website I sent out comes into play.

Eighth, you now can calculate the minimum and maximum for each grade. Again, you need to show all work. Here you will need to assess what types of jobs are in each grade and develop gradually increasing ranges based upon the guidance provided in class.