HR professional in your private-sector organization.
Scenario:
You are an HR professional in your private-sector organization.
When your physical retail chain organization merged two years ago with a firm that
specializes in online apparel retailing, your company had to hire 150 employees to
keep up with growth. This brought your employee count to 250.
Up until the merger, your company paid top market rate, but once the merger took
place the company adopted the merging company’s plan where pay was based 20%
below market value. The base pay plan now in place is ineffective for the type of
company yours has become, where 65-70% of your sales are online.
What role should job evaluation, market pricing, and pay survey data play in your
efforts to develop a new base pay plan for your workforce? Your boss has asked you
to come up with at least six sources useful for the top managers in your organization
to learn about these processes.
Create a PowerPoint presentation of at least 13 slides (representing the topics a, b,
c, and d below and a cover slide) for each of the three sources you identified above.
Discuss:
a. How the term specifically relates to the concept of total rewards,
b. The criteria you applied to determine that each source was appropriate to educate
your company managers.
c. Why each source was chosen (relevance of the info), and
d. Any ethical or legal issues that should be considered.
Sample Solution
Slide 1: Title Slide
- Title: Rebuilding Our Compensation Strategy: A Comprehensive Approach
- Your Name
- Date
Slide 2: Introduction
- Brief overview of the company's situation (merger, growth, pay disparity)
- Purpose of the presentation: To outline a strategy for developing a new base pay plan
Full Answer Section
- Overview of the presentation structure
- Definition of total rewards
- Components of total rewards (base pay, benefits, work-life balance, performance and recognition, development and career opportunities)
- How base pay fits into the overall total rewards strategy
- Definition of job evaluation
- Purpose of job evaluation in compensation
- Methods of job evaluation (point factor, ranking, classification)
- Importance of job evaluation for establishing pay grades and ranges
- Definition of market pricing
- Role of market data in compensation planning
- Identifying relevant job markets
- Importance of benchmarking
- Definition of pay surveys
- Types of pay surveys (proprietary, published)
- Key data points included in pay surveys (job titles, salary ranges, benefits)
- Importance of pay survey data for establishing competitive pay levels
- Description of WorldatWork as a leading HR association
- Relevance to compensation professionals
- Types of resources available (surveys, certifications, publications)
- Potential ethical considerations (data privacy, confidentiality)
- Role of BLS in providing labor market data
- Relevance of BLS data for compensation planning
- Specific data sets useful for market pricing (Occupational Employment Statistics, Wage and Salary Data)
- Potential limitations of BLS data
- Importance of industry-specific data for accurate market pricing
- Identifying relevant industry associations or consulting firms
- Challenges in accessing industry-specific data
- Potential for data bias
- Importance of triangulation (using multiple data sources)
- Methods for combining data from different sources
- Ensuring data consistency and reliability
- Fair pay practices
- Compliance with equal pay laws
- Transparency and communication
- Protecting employee data
- Recap of the importance of job evaluation, market pricing, and pay survey data
- Emphasize the need for a comprehensive approach to compensation planning
- Outline next steps for developing the new base pay plan
- List of cited sources