In the midst of our current economic circumstances, job analysis and compensation have become a very contentious issue. Currently prevailing in the work environment, is a sense of pessimism regarding employment. Consumers, particular those with low skills are being left behind primarily through technological developments and outsourcing. Job analysis therefore has a profound impact on the overall employment perspective as it helps to alleviate any misinformation. The purpose of job analysis is to create an ideal fit between the individual candidate and the perspective employer. Job analysis is also helps to better ascertain the training and development needs of a particular individual. This aspect will prove invaluable as candidate received the needed training to perform their job well and in a manner suitable to the employer. Finally, job analysis helps the company to better establish the overall worth of a particular job. Questions regarding how the position adds value to the franchise are very important with the overall context of job analysis. Through job analysis, potential employers are better able to align job descriptions with those of job specification. This alignment ultimately helps the employer to hire the correct candidate and ultimate foster a better culture within the organization.
Compensation Decisions
Your job now is to pull together all the information you've completed so far in class and make salary decisions for your team. You have completed Cathy's evaluation and received assignment feedback. This is the first year that you've made salary decisions for this team. Be sure to carefully review the information provided. You may simply type in the cells as the text will automatically wrap. You are required to:
Enter Cathy's appraisal rating (she is last on the list);
Within your budget dollars, make your salary decisions based on performance for your team taking into consideration their Salary Grade and the Pay Ranges identified for the Salary Grades (fill in the Salary Decision Column);
Within your budget dollars award bonus money (fill in the Bonus Dollars Column);
In the green line areas, provide your substantiation and risk analysis for the salary decisions made; and
Identify any items from this scenario in whole you may want to address.
Evaluation ratings are 1 = Needs Improvement to 5 = Exceeds Expectations
Salary Budget: $9,000
Bonus Budget: $5,000
Company Designated Salary Pay Ranges
A2 = $12,750 -- 17,000
A3 = 16,500 -- 22,000
A4 = 21,000 -- 28,000
Employee Information
Salary Grade
Current Salary
% at Pay Scale*
Appraisal Rating
Salary Decision
Bonus Dollars
John is a white male, 58YO, with 31 years' service. John is a good worker and you like him. You don't want to lose his skills and experience as he's been talking about retiring, but you realize his skills are too valuable to lose.
A4
$27,900
99.6%
5
$28,900
$500
Substantiation and Risk Analysis: John with his breadth of experience will prove to be a good mentor to our younger employees, particularly Calvin who has a passion for the company. His skills and experience will prove invaluable during periods of high turnover and uncertainty regarding placement
Alice is a Hispanic female, 42YO with 17 years' service. Alice is a good worker. She has a lot of potential, which netted her the higher rating. She needs some more skills and experience at this level though.
A4
$22,500
80.4%
3
$22,500
$250
Substantiation and Risk Analysis: Much like John, Alice's skills are very valuable to the company due primarily to her tenure at the position. Her bonus is lower as she may not possess the desire to grow and develop with the company. As such, she will be less inclined to be innovative or results oriented like our younger, more passionate recruits.
Calvin, 28YO black male with 9 months service. Calvin is a real go getter. He hasn't been with the company long enough to earn a higher rating, but his work is outstanding, high skill set and is looking to stay with our company for a career.
A4
$26,500
94.6%
4
$27,500
$500
Substantiation and Risk Analysis: Calvin is receiving the addition raise because of his proactive nature regarding business operations. This proactive nature will help the company in numerous aspects throughout his tenure. His desire to stay with the company is also refreshing as our salary dollars are less likely to go to waste. A risk, with Calvin's youth, is that he may pursue other endeavors and leave the company. This provides a problem as his skills and insights, particularly through his unique culture, will be lost.
Jane is a 32YO white female with 12 years' service. Jane joined the company as an A3. Her work is satisfactory, nothing to brag about, but she's been with the company awhile and can be dependable.
A3
$19,100
86.8%
3
$20,000
$250
Substantiation and Risk Analysis: Jane, much Alice seems to be complacent with her position. She is dependable but her skills have not improved to the degree of our other employees. Therefore, she should not get rewarded at the level our more proactive and developing employees are.
Beth is a 64YO Asian female with 41 years' service. Beth stated she would probably retire this year, but has yet to turn in her paperwork. She's had a history of higher ratings, but her ratings have slipped over the last 6 years.
A3
$19,700
89.5%
3
$20,000
$500
Substantiation and Risk Analysis: As she is retiring, her raise was the least out of the entire group. The value proposition Beth can provide to the company is limited given her eventual retirement. Therefore, her raise will reflect the limited growth potential she possesses. However, she has had extensive service with the company. Therefore, it is fitting, after 41 years to provide a bonus comparable to those with similar tenure within the company. Also, in the event that Beth changes her mind regarding retirement, the salary increase is low enough not to material effect payroll and compensation.
Ben is a 47YO white male with 27 years' service. He's a good worker, been with your group for a couple years. Hasn't yet expanded his skills, which you thought he'd do even though hired for a specific job. What he does, he does outstandingly.
A3
21,000
95.5%
4
$21,500
$250
Substantiation and Risk Analysis: Ben is complacent with his position and subsequent skill development. Therefore, his reward is very limited compared to growth employees.
Alex is a 30YO white male with 9 years' service. He's quite a guy, performs well at his job. Started as an occupational worker and has worked his way into management.
A2
$15,800
92.9%
5
$17,000
$750
Substantiation and Risk Analysis: Alex possesses a drive and a passion for growth within the company. His bonus and salary should reflect this continued drive for growth. In order to maintain our talent our compensation should facilitate this growth. Therefore, his experience, knowledge, drives for development and persistence have earned Alex a high bonus and compensation relative to others. Much like our other younger employees, a substantial risk to this increased compensation, is that Alex will leave for a competitor or rival.
Ken is a 20YO Hispanic male with 1 year service. Ken is young and fresh. You think he should have been hired at a higher level because his skills are so good. You don't want to lose him because he adds value to the business. You'll probably jump him to an A4 position soon.
A2
$17,000
4
$19,000
$500
Substantiation and Risk Analysis: Ken is a rising leader within the business. Therefore, in order to retain his skills and abilities we should compensate him accordingly
Cathy is your 19YO (ethnicity unknown) female HR Receptionist. She has been with the company for 1 year. You recently completed her performance evaluation.
A2
$12,000
70.6%
3
$12,000
$200
Substantiation and Risk Analysis: Cathy is relatively new to the company. Her skills have yet to be completely ascertained. Therefore, it is important to see the skills she provides before providing a bonus or salary increase.
*This shows the pay scale range for each employee by percentage. Formula is current salary + top salary range. This percentage range should be between 75% - 100%.
Overall Comments:
You’re 79% through this paper. Sign up to read the full paper.
Sign Up Now — Instant Access Already a member? Log inAlways verify citation format against your institution’s current style guide requirements.