Compensation and Benefits Task 1 Endothon

A. Revise the following to include the three new positions and their salaries, as well as to show any changes to existing salaries. a. The 3 new positions are Highlighted in bold and italic font Position Title Partner 1 Partner 2 Partner 3 Lead software designer 1 Software designer 1 Software designer 2 Software designer 3 Software designer 4 Brand Manager Human resources manager 1 Software designer 5 Software designer 6 Product Sales Representative 1 Operations supervisor 1* Product Sales Representative 2 Current Pay Rate $150,000.00 annually $150,000.00 annually $150,000.00 annually New Pay Rate $180,000.00 annually $180,000.00 annually $180,000.00 annually $120,000.00 annually $117,220.00 annually $145,000.00 annually $130,000.00 annually $90,100.00 annually $90,000.00 annually $85,000.00 annually $113,850.00 annually $113,700.00 annually $108,250.00 annually $75,900.00 annually $75,897.00 annually $70,000.00 annually $55,000.00 annually $107,000.00 annually $95,000.00 annually $94,950.00 annually $89,000.00 annually $83,000.00 annually $72,000.00 annually $70,000.00 annually Customer service representative 1 IT technician 1 (help desk) Administrative assistant 1 - billing IT technician 2 (help desk) $32.50 hourly $25.75 hourly $24.50 hourly $21.10 hourly $45 hourly $32 hourly $30 hourly $26.60 hourly Administrative assistant 1 - general IT technician 3 (help desk) Customer service representative 2* Customer service representative 3 $19.65 hourly $15.50 hourly $15.38 hourly $11.50 hourly $27.50 hourly $19.50 hourly $19.40 hourly $14 hourly 1 A1. Justify the placement and salaries of the three new positions. 1. Brand Manager: According to the requirements to be a brand manager, it is similar to the Marketing Manager position. This is based on the Market Rewards Survey. To remain competitive in today’s market, the salary recommendation is placing them in the 25% rate. The prerequisites of the job are 3 years of management and 5 years’ experience in product marketing. The emphasis on product marketing will find candidates that are more specialized in sales with a little bit of emphasis in leadership. 2. Product Sales Representative 1 (PSR1): The requirements for this position are a bachelor’s degree and experience as an entry level sales manager. Another requirement is for ability to travel 50% of the year. The applicants must both exceed basic qualifications and have more experience than normal for this pay rate. The salary of $83,000.00 is to be competitive and incentivizing, as travel for work is difficult. This will have a pay rate at 25%. 3. Product Sales Representative 2: This role has the same requirements as PSR1; both a bachelor’s degree and entry level sales management experience. It also has the same necessity for extensive travel as PSR1. This position will be marketing more specifically for sales and will thus be paid at the rate of the Sales group, at a little more than the 10% pay rate. With this salary, Endothon will attract entry-level applicants that have more experience with sales. B. Using the 23 positions, create a pay grade and ranges table. Pay Grade Grade 1 Positions Customer Service Representative 3 Customer Service Representative 2 IT Technician 3 – Help Desk Administration Assistant 1 - General Minimum $27,000 ($13.85/hour ) Midpoint $38,000 ($19.49/hour) Maximum $45,000 ($22.50/hour) Grade 2 IT Technician 2 – Help Desk Administration Assistant 2 – Billing IT Technician 1 – Help Desk Customer Service Representative 1 $48,000 ($24.62/hour ) $65,000 ($33.30/hour) $82,000 ($42.05/hour) Grade 3 Product Sales Representative 2 Operations Supervisor 1 $68,000 $79,000 $90,000 Grade 4 Product Sales Representative 1 Software Designer 6 Software Designer 5 Human Resources Manager 1 Brand Manager $80,000 $97,500 $115,000 Grade 5 Software Designer 4 Software Designer 3 Software Designer 2 $105,000 $120,000 $135,000 Grade 6 Software Designer 1 Lead Software Designer 1 $125,000 $152,500 $180,000 Grade 7 Partner 3 Partner 2 Partner 1 $175,000 $237,500 $300,000 B1. Describe a strategy to address original salaries now found outside the proposed ranges. Any salary that is currently below the minimum should be given an immediate raise to meet the minimum salary requirement for their pay grade, depending on their pay grade level. Any personnel who are currently exceeding the maximum salary for their pay grade level should receive a salary freeze. These personnel may have 2 options open to them: 1) Enroll in a Personal Development Plan to work towards a promotion and move to the next level of pay grade. 2) Receive a Base Pay decrease but receive the difference in pay in an incentive-based reward for meeting quotas, or a goal. This payout can be monthly, quarterly, or yearly. B2. Justify your pay grades and ranges, commenting on attraction and retention strategies. The pay grades range from Pay Grade 1 to Pay Grade 7. The scale begins at Pay Grade 1, which consists of entry-level jobs, and ends at Pay Grade 7, which consists of Executive-level jobs. The salaries beginning at Grade 1 are slightly higher than the market rate to attract candidates that will work harder and have loyalty to the job. Grade 1 is expected to have employees who are trainable and can have skills developed that can help the business in multiple ways (whether they want to branch off into IT, software development, human resources, etc.). Moving onto grades 2 and 3, these employees are already professionally trained and have shown commitment to the company and are also incentivized to stay with the company longer by having a generous salary. 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: Pay Grades 1 and 2 can receive individual performance bonuses for Departmental Metrics, or for Perfect Attendance. These pay grades comprise of 3 roles: Customer Service Reps, Administration Assistant, and IT Technicians. They can all have an extra incentive for extra cash at the end of the month Justification 1: For Customer Service Representatives, they can have individualized questionnaires sent to clients, who respond to questions about how they were treated during the interaction with the representative. These surveys can have a quantitative scale, from a range of 1-10 (1 being completely unhappy to 10 being completely satisfied with the service). At the end of the month, the scores for each customer service rep can be tallied up and averaged out, and if they had an average score higher than 80% satisfaction (or an 8 in the scale), then they can earn an extra $250-300 a month. For IT Techs, they can earn an incentive if they are able to properly and efficiently solve tickets. If they can meet a goal of 90% Resolution of Tickets received by 24 hours, then everyone in the department can earn an extra $500 a month. For Administration Assistant, their incentive can be paid out for perfect attendance in one work month. This incentive can be worth up to $250 a month. All of these roles are entry level and are not high up in the salary scale. To help them feel more valuable to the company, an individualized incentive will make them perform better and will make them feel happier. Recommendation 2: Pay Grade 3 and 4 can receive bonuses based on team goals and sales for the whole company. These bonuses will be paid out every quarter. Depending on how well the company performs, the bonus can range from 10% to 15% of their pay grade. Justification 2: At these pay grades, the employees are invested in the well-being of the company. The best way to thank them for their efforts is to include them in the gains of the whole company. This type of incentive is to ensure our middle management team keeps up on the mission of the company, and also maintains a positive morale throughout the year. The bonuses will be paid out quarterly so the management team can keep track of the company month-to-month and will keep them positively motivated with a larger bonus. Recommendation 3: Grades 5 and 6 should already be senior employees of the company. The deserve a much more personal incentive. The best method for these Pay Grades to feel valued in the company is be offered a “profit sharing option”. This means that if the company does very well, at the end of a quarter or at the end of the year, the employee receives a percentage of the company’s profits. Justification 3: These employees have a huge impact in the success of the company and motivating them will benefit the company. To thank these employees for their massive contributions, they deserve a larger incentive. This type of bonus is reserved for senior employees with the most amount of loyalty, which are found in this Pay Grade.