B. Create a pay grade and ranges table that addresses the current and new roles by using your revised job-value structure and all other attachments.
1. Describe a strategy to address the original salaries found in the attached “Current Job-Value Structure” that might now be outside the proposed ranges.
Note: If the original salaries are not outside the proposed ranges in your pay grade and ranges table, describe a strategy that you would use if they were (green and red circle rates.)
2. Justify the pay grades and ranges in the table, commenting on attraction and retention strategies.
B. Pay Grade and Ranges TableApproaching CompetenceApproaching CompetenceThe pay grade and ranges table is not comprehensive and does not address each current and new role within an appropriate pay grade, or it does not align to market survey data, or it does not show overlapping pay ranges, or it does not include ranges that are consistent steps from one to another.EVALUATOR COMMENTS: ATTEMPT 1
The submission includes a 7-tier pay grade and range table with all 23 positions and overlapping ranges. However, multiple positions are not in an appropriate range as their salaries in the Job Value Structure are either above the maximum or below the minimum of their current pay range. Remember to address each current and new role within an appropriate pay grade, align to market survey data, show overlapping pay ranges, and include ranges that are consistent steps from one to another.
B. Create a pay grade and ranges table that addresses the current and new roles by using your revised job-value structure and all other attachments. 1. Describe a strategy to address the original sa
A. Revise the following to include the three new positions and their salaries, as well as to show any changes to existing salaries. Position Title Current Pay Rate New Salaries Partner 1 $150,000.00 annually $187,500 annually Partner 2 $150,000.00 annually $187,500 annually Partner 3 $150,000.00 annually $187,500 annually Lead software designer 1 $120,000.00 annually $150,000 annually Software designer 1 $117,220.00 annually $146,525 annually Software designer 2 $90,100.00 annually $113,850 annually Software designer 3 $90,000.00 annually $112,500 annually Software designer 4 $85,000.00 annually $106,250 annually Human resources manager 1 $75,900.00 annually $94,875 annually Software designer 5 $75,897.00 annually $94,871 annually Software designer 6 $70,000.00 annually $87,500 annually Operations supervisor 1* $55,000.00 annually $68,750 annually Customer service representative 1 $32.50 hourly $40.63 hourly IT technician 1 (help desk) $25.75 hourly $32.19 hourly Administrative assistant 1 – billing $24.50 hourly $30.63 hourly IT technician 2 (help desk) $21.10 hourly $26.38 hourly Administrative assistant 1 – general $19.65 hourly $24.56 hourly IT technician 3 (help desk) $15.50 hourly $19.38 hourly Customer service representative 2* $15.38 hourly $19.23 hourly Customer service representative 3 $11.50 hourly $14.38 hourly Brand Manager $107,370 annually Product Sales Representative 1 $83,340 annually Product Sales Representative 2 $63,690 annually A1. Justify the placement and salaries of the three new positions. The brand manager is the first new position whose salary is $107,370 annually after consulting the Market Reward Survey. The position is comparable to the marketing manager position, which sets 25% of pay at the salary selected. The salary is placed beyond the basic rate of 10% ($75,890) because it seeks to attract brand managers who are qualified to fill the position. In addition, a key detail of the job description is that applicants should have experience; thus, a lower salary would likely attract only entry-level applicants. For the first product sales representative, an annual salary of $83,340 is also set at 25% per the sales position in the Market Reward Survey. This position’s key requirement is a degree, entry-level experience, and flexibility in traveling. Therefore, a lower salary range would not attract experienced candidates but those who are seeking an entry position. With the salary range set at 25%, the company communicates its intention, skill requirements, and expectations. In contrast to the first to the first product sales representative position, the second opening requires slightly less experience. Therefore, this position does not require a high salary range and can fit the 10% of the salary range as in the Market Reward Survey. The salary is representative of the company’s intentions to recruit for an entry-level position. B. Using the 23 positions, create a pay grade and ranges table. Pay Grade Positions Minimum Midpoint Maximum 1 Customer Service Representative 3, IT Technician 3, Customer Service Representative 2, Administrative Assistant 1-General $29,000 $35,549 $42,098 IT Technician 2, Customer Service Representative 1, Administrative Assistant 1-Billing, IT Technician 1 $40,000 $48,463 $56,927 Operations Supervisor 1, Product Sales Representative 2 $50,000 $63,510 $77,020 Software Designer 6, Product Sales Representative 1, Software Designer 5, Human Resources Manager 1, Software Designer 4 $70,000 $87,102 $104,204 Brand Manager, Software Designer 2, Software Designer 3 $100,000 $120,491 $140,983 Software Designer 1, Lead Software Designer $110,000 $150,371 $190,742 Partner 1, Partner 2, Partner 3 $180,000 $264,572 $349,145 B1. Describe a strategy to address original salaries now found outside the proposed ranges. Note: If the original salaries are not outside the proposed ranges in your pay grade and ranges table, describe a strategy that you would use if they were (green and red circle rates). Employees whose salaries are below the minimum salary requirement for their position should receive immediate raises to bring them up to the minimum level. For employees whose salaries exceed the maximum salary requirement, wages should be frozen until the company can determine how to handle the overpayment. New hires should be paid within the appropriate salary range. Strategy: The first strategy is to offer a promotion training program to help overpaid employees get promoted to the next position; this will allow them to keep earning the same pay rate and be eligible for a higher salary range in their new role. The strategy is a good option for overpaid employees because it allows them to keep their current salary and have the opportunity to earn more money in the future. It is also a good option for the company because it allows them to retain experienced employees and fill higher-level positions with qualified candidates. The second strategy is to offer a promotion training program; the company will need to reduce the overpaid employee’s salary. However, the company should try to keep other incentive-based rewards in place, such as bonuses, commissions, or stock options. Reducing an employee’s salary is difficult for any company to make. However, it is sometimes necessary to maintain financial stability. When reducing an employee’s salary, being transparent and honest with the employee is essential. The company should also explain why the pay decrease is necessary and how the employee can return to earning a higher salary in the future. B2. Justify your pay grades and ranges, commenting on attraction and retention strategies. Entry-level roles in pay grades 1 and 2 are essential for any company and new hires who need to develop skills. Many of these positions are stepping stones for employees moving up or gaining experience to transfer to another company. They are not designed for long-term employment, but the 30-40% pay difference between grades 1 and 2 helps to maintain morale among entry-level employees. Additionally, these pay grades have variances that allow employees to develop seniority, cover the cost of living comfortably, and provide incentives for employees to strive for higher pay. The other pay grades are within reasonable ranges for the experience levels of the associated positions and incentivize employees to continue working hard for promotions. C. Recommend one distinct variable pay option for each of three pay grades, including a justification of why each recommendation would motivate individuals in that particular pay grade. Recommendation 1: The first recommendation is to introduce individual performance bonuses for pay grades 1 and 2. Performance-based bonuses will motivate employees and align their efforts with the company’s objectives. The bonus structure will be tailored to specific roles and performance metrics, enabling the company to develop a culture that promotes excellence, efficiency, and reliability. Justification 1: Individual performance bonuses tailored to specific job titles within pay grades 1 and 2 can be a valuable incentive for employees at Endothon. These bonuses are designed to reward outstanding performance and motivate employees to excel in their respective roles. For employees such as customer service representatives, maintaining high levels of customer satisfaction is crucial. Therefore, providing them with a monthly pay bonus or the opportunity to earn an additional day off each month for achieving and sustaining customer approval is an effective strategy that recognizes and rewards exceptional customer service and encourages employees to deliver a high service level consistently (Delfgaauw et al., 2018). Individual performance bonuses promote employee motivation and engagement and align with Endothon’s objective of retaining a high-quality workforce and delivering exceptional customer service. They reward specific, measurable achievements in each job title within pay grades 1 and 2, ultimately contributing to the company’s overall success. Recommendation 2: The second recommendation is to implement performance bonuses for pay grade 3 positions, which includes the positions of Operations Supervisor and Product Sales Representative. These bonuses will be awarded quarterly and are based on the achievements of these critical roles. The rationale behind this recommendation is to reward and motivate employees with significant experience and expertise in directing operations and driving sales, which are crucial to Endothon’s success. Justification 2: Pay grade 3 is designated for employees with a wealth of experience and knowledge or those with exceptional skills required to direct operations and sales effectively. These employees are integral to the company’s growth and profitability. Offering them quarterly performance bonuses serves as a way to reward their expertise and dedication to the company (Rakhra, 2018). In a competitive job market, retaining experienced and skilled employees is critical. By offering performance-based bonuses, Endothon can attract top talent and retain current high-performing employees. This can save on recruitment and training costs while ensuring consistent excellence within the company. Recommendation 3: The last recommendation is to implement a profit-sharing program for employees in pay grades 4, 5, and 6. These grades encompass senior employees and well-educated individuals who influence the company’s direction substantially. This recommendation aims to provide these key personnel with compensation that aligns with their level of expertise, influence, and dedication. Profit-sharing incentives are suitable for rewarding their commitment to the company’s success. Justification 3: Profit sharing creates an additional motivational factor for employees in these pay grades to lead their teams and tasks efficiently. They know that their efforts directly contribute to the company’s profitability, so they are incentivized to make well-informed and effective decisions (Domenico Mario Nuti, 2023). This leads to improved team performance, enhanced productivity, and more strategic direction, ultimately benefiting the company. In a competitive job market, Endothon must offer competitive compensation packages. Profit sharing is an attractive benefit for senior and well-educated employees. It complements their existing salaries and offers a chance to earn additional income directly tied to the company’s success, making it an enticing component of their overall compensation. Finally, profit-sharing programs also foster long-term commitment among senior employees. These employees are more likely to stay with the company and remain dedicated to their roles when they have a direct stake in its success; this aids in talent retention, reduces turnover costs, and ensures a stable and knowledgeable workforce. References Delfgaauw, J., Dur, R., & Souverijn, M. (2018). Team incentives, task assignment, and performance: A field experiment. The Leadership Quarterly. https://doi.org/10.1016/j.leaqua.2018.03.003 Domenico Mario Nuti. (2023). Profit-sharing and Employment: Claims and Overclaims. Studies in Economic Transition, 369–385. https://doi.org/10.1007/978-3-031-23167-4_16 Rakhra, H. K. (2018). Study on factors influencing employee retention in companies. International Journal of Public Sector Performance Management, 4(1), 57. https://doi.org/10.1504/ijpspm.2018.088695