Compensation Practice and Regulations The purpose of this project is to demonstrate an understanding of compensation practice and regulations while applying it to real life situations.
This project will result in a fully developed compensation strategy by the end of the term. The project will have a total grade at the end of the term; however, certain segments of it will be submitted as homework assignments as well. This not only keeps you on track, it also allows me to give you some pointers if you are off course.
Compensation Practice and Regulations Project Segments and Chapters
The project will consist of the following segments:
Picking benchmark jobs and locating job descriptions (Chapters 6/7)
Job Evaluation & Market Pricing (Chapters 6/7)
Build Pay Structure(s) based on the information collected in #1 and #2 (market based/compensable factor based/integrated) (Chapter 8)
Designing a Merit Pay plan to include how merit would be determined and by whom (Chapter 8)
Building a Benefits Package that would attract and retain workers at different levels of the work force; taking into account ERISA guidelines and legally required benefits (Chapter 9)
Identification of appropriate Expatriate pay plans; what would be included (Chapter 13)
Pretending that you are the HR Director for XYZ Org and have been tasked with developing a new compensation system. The following instructions are to be used:
1. Benchmark jobs –
Pick 10 jobs that would be common in most organizations (so that you can find data on the web); jobs such as accounting clerk, receptionist, landscaper, custodian, accountant, civil engineer, HR director.
Research the jobs on-line and find job descriptions that you can use to create a “basic” description that includes Essential Functions, Experience
Compensation Practice and Regulations Essay Requirements
Requirements, Educational Requirements, any other KSAOs you feel are relevant. I don’t need exhaustive job analysis, just hit the most important factors – no more than 1 page each.
2. Job Evaluation & Market Pricing
Determine which job evaluation technique you feel best fits your organization and justify it. Should the exempt jobs be evaluated on a different system than non-exempt? Explain why or why not.
Using what is available on the web, market price your jobs (at least 3 sources of data). In a real evaluation, you would purchase surveys or match based on industry; I realize that is not possible for the purposes of this class. In the explanation of the market pricing, tell whether each job would be matched for industry and/or local/region/national and why.
Using the selected job evaluation technique, evaluate your 10 jobs explaining the steps you go through to collect the data and evaluate the jobs.
3. Build Pay Structure(s)
Include charts, data, calculations, quartiles, compensable factor ratings, evaluative point plans, trend lines, etc.
Demonstrate the pay structure(s) that you come up with for your jobs.
4. Designing a Merit Pay plan
Describe a process for giving out merit pay (tied to annual performance appraisals? Achievement pay? Bonuses?) And explain why you chose this process. – no more than one page
Develop a pay matrix based on current pay and performance ratings.
5. Building a Benefits Package that would attract and retain workers at different levels of the work force
Include two sections:
Added benefits to attract and retain and various levels of the org
Describe regulations that would be considered in maintaining these benefits long term.
6. Identification of appropriate Expatriate pay plans
Explain which additional benefits you would extend and why
Explain what extra pay you would extend and why