SHRM case study, “Designing a Pay Structure

Read the SHRM case study, “Designing a Pay Structure.” Prepare an analysis of this case. The instructions are provided at the beginning of the case. Your analysis of this case and your completed submission should reflect an understanding of the critical issues of the case, integrating the material covered in the text, and present concise and well-reasoned justifications for the stance that you take. This case analysis consists of Five Steps: Job Analysis, Job Evaluation, Pay Policy Identification, Pay Survey Analysis, and Pay Structure Creation. This case is to be completed using Excel. Case analysis criteria: Your case analysis should consist of: Completion of Task A: Create a complete job description for the benefits manager position using O*NET. Completion of Task B: Calculate the job evaluation points for the administrative assistant, payroll assistant, operational analyst, and benefits manager jobs. Provide a rationale for assigning specific degrees to the various jobs. Completion of Task C: If there were any outliers (i.e., extreme data points) in these data, what would you recommend doing with them? [From this point forward, assume no extreme data points exist in the dataset.] Completion of Task D: Conduct a simple regression in Excel to create a market pay line by entering the job evaluation points (on the X axis) and the respective weighted average market base pay (on the Y axis) for each benchmark job. Completion of Task E: What is your R squared (variance explained)? Is it sufficient to proceed? Completion of Task F: Calculate the predicted base pay for each benchmark job. Completion of Task G: Because your company wants to lead in base pay by 3 percent, adjust the predicted pay rates to determine the base pay rate you will offer for each benchmark job. Completion of Task H: Task H: Create pay grades by combining any benchmark jobs that are substantially comparable for pay purposes. Clearly label your pay grades and explain why you combined any benchmark jobs to form a grade Completion of Task I: Use your answer to Task H to determine the pay range (i.e., minimum and maximum) for each pay grade. Completion of Task J: Given the pay structure you have generated, consider the following: Does this pay structure make good business sense? Do you think it is consistent with the organization’s business strategy? What are the implications of this pay structure for other HR systems, such as retention and recruiting? You may discuss your case analysis assignment with the class, but you must submit your own original work.

Designing A Pay structure
Introduction
In the case, an engineering consultant firm with headquarters based in Indianapolis, Indiana seek to expand its operations to Chattanooga, Tennessee. The mission statement of the firm is to continue providing technically and customized proficient electrical engineering plans to its clients regionally both in Indianapolis and Tennessee. As the firm expand, new employees in critical position will be required and this necessitate an analysis of the pay structures to benchmark these positions within the company. As a newly hired human resource (HR) director, the analysis will involve five different steps: job analysis, job evaluation, pay policy identification, pay survey analysis, and pay structure creation. The purpose of the analysis process is to assist the firm to adopt a lead pay policy that enhances competitive advantage of the firm in the local market as well as enabling the firm to retain and attract high valued employees and candidates.

Task A1: Job Description – Benefits Manager
The job description of benefits manager include “plan, direct, and coordinate retirement plans, health insurance, and other benefits that a firm offers to its employees”. In addition, benefits manager “surveys the industry and or community to determine firm’s competitive position in employee benefits. Based on the outcome of the survey, the benefits managers develops, recommends and installs approved, modified or new plan and employee benefits policies and supervised administrations of existing plan. Also, benefits manager develops cost control procedures to assure maximum coverage at the least possible cost to a firm and employee”. The cmprehensive job summary of the benefits managers are listed in Appendix A. One of the key requirement of the benefits manager is fluent, effective and efficient verbal and written communication skills. This is important in ensuring that employee receives concise, clear and transparent communication. To develop a competitive benefits plan for the employee in all the locations, benefits manager combines the use of labour law, maths and logic.

Compensable factor and defined degrees

Skill	Responsibility	Effort
50%	30%	20%
Education Levels	Scope of Control	Degree of Problem Solving
High school	Perform General Office Duties	Negligible
Associates	Prepare Reports	Minimal
Bachelors	Analyze Data	Mediam
Master/Graduate	Managing Others	Maximum

Degree of Technical Skills	Impact of Job	Task Complexity
Prepares Memos and Report	Does not affect daily operations	Handles basic inquires/duties
Enters Data into the computer	Has minimal effect on daily operations	Handles intermediate complex situations
Analyze Data	Mediam impact on daily operations	Handles very complex issue
Analyze reports and makes complex decisions	Maximum impact on daily operations	Manages others that handle complex issues and assists with decision making.