OL 325 Milestone Three PDF

Preview

Summary

Download OL 325 Milestone Three PDF

Description

Running head: MILESTONE THREE: EXTERNAL COMPETITIVENESS

Final Project Milestone Three: External Competitiveness Serena Godek Southern New Hampshire University

1

MILESTONE THREE: EXTERNAL COMPETITIVENESS

2

Final Project Milestone Three: External Competitiveness 1. Pay-Policy Levels for E-sonic Jobs A pay mix policy refers to “the combination of core compensation and employee benefits components that make up an employee’s total compensation package” (Martocchio, 2020). It is important to look at E-sonic’s competitors’ compensation and national averages. What other companies are paying their employees is a vital role in determining how to compensate your own employees. Pay mix policies are crucial in staying competitive and attracting the best applicants possible. When determining an appropriate pay-policy for a possible employee who is new to the company, their importance to the company should be considered in what makes the pay-policy mix. There are many factors that that makes up the pay-policy such as base pay, short-term incentives, long-term incentives and benefits. Base pay is represented by the hourly rate or annual salary that employees get paid. Short-term incentives constitute bonuses that are granted either quarterly, semi-annually or on an annual basis. Long-term incentives motivate employees to focus on the “future viability of the firm and often help to retain valuable people” (Martocchio, 2020). E-sonic offers two long-term incentives, one being stock options and the other being profit sharing. Benefits to employees include both discretionary and legally required benefits. When looking at how much each position should receive in compensation, it is important to look at the different roles and duties of each job. It is also important to understand that each jobs requirement is different, such as the level of education needed. For instance, some positions only need a high school diploma while others may require a college degree. Thus, those who have more skills would be offered more pay and compensation incentives. 2. External Market Review

MILESTONE THREE: EXTERNAL COMPETITIVENESS

3

a) Compensation Survey/Market Competitiveness E-sonic is a unionized company along with other software and technology companies. Unionized companies may be required to pay higher wages to their employees based on labor – management negotiations (Martocchio, 2020). In this case, using compensation surveys is a useful tool in determining in employee pay. “A salary survey generally contains data about wages. Surveys may compare employee wages inter-departmentally, by company or organization, according to job title or position, or earnings for workers in different geographic regions. HR experts use survey data for building compensation structures, or to determine if employees are receiving fair and competitive wages” (Carver, 2020). These surveys help to aid in salary benchmarking, help employers design a compensation package, ensure employers keep up with salary trends, make sure organizations recruit and retain the best employees, and create a culture of consistency and transparency (Carver, 2020). These surveys can be found online, however a company can make their own survey or even have industry specific surveys. E-sonic can benefit in a compensation survey in which it can help determine what other companies are paying their employees, therefore keeping E-sonic apart of the competitive pay scale. E-sonic job descriptions were evaluated to a benchmark job description. Benchmark jobs play a key role in compensation surveys. “Compensation professionals use them to determine pay rates for jobs at their firms based upon typical market pay rates for similar jobs at other companies. This allows compensation professionals to integrate internal equity considerations with market specific data, allowing their firms to maintain external competitiveness while attracting and retaining the best talent” (Martocchio, 2020). E-Sonic Position Marketing Director Artist Relationship Manager Creative Director

Selected Benchmark Position Marketing 4 Business Development 1 Marketing 3

MILESTONE THREE: EXTERNAL COMPETITIVENESS Copy Writer Director of Software Development Software Project Manager Software Technician

4

Marketing 2 Software Development 5 Software Development 4 Software Development 1

b) Trends on Living Adjustments and Skills/Experience Employees will need to understand the benchmark and skills are what measures the compensation and benefits they receive. If an employee has skills that exceed the standard, their pay will be increased. If an employee does not reach the benchmark standard, their pay will be reduced. This would give employees an eye opener to ensure that they gain the skills needed. Obtaining the education and skills needed for the position will guarantee you the increase in pay and place you in the right compensation bracket. Cost-of-living adjustments are made based on the changes in the cost-of-living index. The negotiation in pay is a result of the cost-of-living allowance being increased which can happen annually (Inflation Data).

MILESTONE THREE: EXTERNAL COMPETITIVENESS

5

c) Update Salary Data for Inflation using CPI-U

(Bureau of Labor Statistics, 2021) This image from the Bureau of Labor Statistics shows the national CPI of the United States. “The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services” (Bureau of Labor Statistics, 2021). 3. Implement Salary Survey Results a) Create Pay Grades and Ranges In order to determine the appropriate pay level for employees, the range and average salary is listed below. It would not be fair to pay each department the same amount when they have

MILESTONE THREE: EXTERNAL COMPETITIVENESS

6

different requirements needed for the specific job and different tasks to do. The pay range will allow E-sonic to ensure a fair compensation package as well as have some wiggle room for negotiations. E-sonic will need to conduct compensation surveys of similar positions within the market to decide the appropriate level of compensation. The survey data will make it possible to set the pay grade within each department and position. The survey data will also allow E-sonic to offer an attractive compensation package and be competitive with other companies. E-Sonic Position Marketing Director

Typical Range $126,004 - $171,999

Average Salary $147,320 (Salary.com, 2021)

Artist Relationship Manager

(Salary.com, 2021) $61,300 - $187,200

$111,556 (Comparably)

Creative Director

(Comparably) $104,481 - $148,949

$125,185 (Salary.com, 2021)

Copy Writer

(Salary.com, 2021) $46,784 - $58,300

$51, 785 (Salary.com, 2021)

Director of Software

(Salary.com, 2021) $131,056 - $153,560

$141,005 (Salary.com, 2021)

Development Software Project Manager

(Salary.com, 2021) $55,500 - $138,000

$94,723 (ZipRecruiter, 2021)

Software Technician

(ZipRecruiter, 2021) $55,000 - $137,000

$87,325 (Zippia The Career

(Zippia The Career

Expert, 2021)

Expert, 2021)

b) Summarize Decisions made for each Job Structure For E-sonic to become a competitor in searching for employees in the new company, E-sonic will need to have a competitive compensation package and great benefits that will attract

MILESTONE THREE: EXTERNAL COMPETITIVENESS

7

potential hires. With the information provided, E-sonic will be able to make the right choice in bringing on the employees they need with the right salaries based on their education and skills.

References Bureau of Labor Statistics. (2021). https://www.bls.gov/news.release/pdf/cpi.pdf

Carver, C. (2020). Compensation Surveys: Are They Necessary?. https://astronsolutions.net/compensation-survey/ Comparably. (2021). https://www.comparably.com/salaries/salaries-for-artist-relations-manager Inflation Data. https://inflationdata.com/articles/cost-of-living/costofliving-adjustment-cola/ Martocchio, J. (2020). Strategic Compensation: A Human Resource Management Approach (10th edition). Boston: Pearson Custom. Salary.com. (2021). https://www.salary.com Zippia The Career Expert. (2021). https://www.zippia.com/software-technician-jobs/salary/ ZipRecruiter. (2021). https://www.ziprecruiter.com/Salaries/Software-Development-Project Manager-Salary...