Compensation strategy

Compensation and Benefits: Endothon Task Course Code: C236 Student Name: Anthony Dennis Student ID: 011519221 Date: 03/12/24 Program Mentor Name: Joe Dan Vandelin

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/Proposed Pay Rate Partner 1 $150,000.00 annually Partner 2 $150,000.00 annually Partner 3 $150,000.00 annually Brand Manager $155,000.00 annually (new) Lead Software Designer 1 $120,000.00 annually Product Sales Rep 1 $110,000.00 annually (new) Software Designer 1 $117,220.00 annually Product Sales Rep 2 $105,000.00 annually (new) Software Designer 2 $90,100.00 annually Software Designer 3 $90,000.00 annually Software Designer 4 $85,000.00 annually Human Resources Manager 1 $75,900.00 annually Software Designer 5 $75,897.00 annually Software Designer 6 $70,000.00 annually Operations Supervisor 1 $57,450.00 annually 1

larger company anticipating growth). In creating your new pay grade and ranges table below, the principles of overlapping pay grades and consistent progression from one grade to another must be used. Pay Grade Positions Min Midpoin t Max Range Difference 1 Customer Service Reps 1- 3. Admin Assistants 1 (B) and $23,920 $50,960 $67,600 $43,680 2 IT Technicians 1-3 $34,600 $45,700 $57,300 $22,704 3 Operations Supervisor $55,000 $57,000 $58,850 $3,850 4 Product Sales Rep 1-2 $63,690 $70,000 $83,340 $19,650 5 Software Designer 5-6 HR Manager 1 $74,900 $78,200 $81,200 $6,300 6 Software Designers 2-4 $91,000 $96,300 $97,000 $6,000 7 Brand Manager $107,370 N/A N/A N/A 8 Lead Software Designer 1 Software Designer 1 $125,500 $127,500 $128,40 0 $2,900 9 Partners 1-3 $160 N/A N/A N/A 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 range table, describe a strategy that you would use if they were (green and red circle rates). 3

Strategy: To maintain internal equity, I would promptly raise any salaries that fall short of the range minimums (green circle rates). I would maintain salaries at the current rate and restrict further hikes until they are back within the range for incomes over the range maximums (red circle rates). An alternative to a raise to partially offset being above range could be to offer a lump sum bonus instead of a raise. B2. Justify your pay grades and ranges, commenting on attraction and retention strategies. The pay ranges consistently progress from 15-20% between consecutive grades. This allows for career growth and motivation. The wider ranges (50-60% spread) provide flexibility for rewarding performance and adjusting for tenure or experience ( O-Net 2024) . Competitive market pricing at the median should aid in attracting and retaining talent. 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 Grade 7 (Brand Manager) - Profit Sharing Plan Justification 1: Tying a portion of pay to company or product profitability will incentivize the marketing efforts of this role. Recommendation 2: Pay Grade 4 (HR Manager, Operations Supervisor) - Spot Bonuses Justification 2: Allowing managers to provide discretionary spot bonuses to employees reinforces and rewards exceptional performance tied to operational and HR initiatives. Recommendation 3: Pay Grade 2 (Customer Service Reps 1, IT Techs 1) - Quarterly Team Incentives 4