EXHIBIT 2: 2017 SALARY SURVEY DATA FROM PROFESSIONAL ASSOCIATIONS— INTERMEDIATE ENGINEERING POSITION (IN SUSD) Base Salary Total Cash Compensation Low Average High Low Average High Salary Survey 1 $70,600 Not available $95,000 Not available Not available Not available $72,250 $84,600 $96,400 $73,700 $89,100 $101,650 Salary Survey 2 Source: Created by the case authors based on the data for Salary Survey 1 which came from a 2017 report from Stac, and the data for Salary Survey 2 which came from a 2017 report from the Jamaica Society of Professional Engineers (JPSE). THE EMPLOYEE PERSPECTIVE Wanting to obtain some employee input, Apton spent the next couple of hours walking around and chatting informally with his employees about compensation and rewards. Unsurprisingly, he found that their opinions were varied. Some thought that money mattered most, but many others on the team put more value on the lifestyle aspects of the reward system. The latter group valued flex time, the collegial working environment, the weekly barbecues, and so on. One employee noted that she wanted a higher salary but commented at the same time that another employer "couldn't offer anything to make me want to leave." When he asked what stood out to them on their total rewards statement, only a few employees could remember the details in the document. Reading between the lines, Apton realized that they reviewed it when it came in but then mostly forgot about it. He began to worry that, while the statement had a lot of good information, it might not have enough impact. DECISION TIME Back in his office with time to review his thoughts, Apton sketched out his three main options on a pad of paper and pondered what to do. Should he offer Gayner the job at a lower salary and take the chance of being turned down? Should he give Gayner the salary he wanted and risk upsetting his other employees if they found out? Should he completely revamp his compensation system and increase salary levels for all of the engineers? He wasn't sure which option was the best choice. EXHIBIT 1: AVERAGE BASE PAY FOR CURRENT EMPLOYEES AT LEL (IN SCA) Average base pay for engineers with less than five years' experience: $78,000 Average base pay for engineers with between five and 10 years' experience: $85,000 Average base pay for engineers with between 10 and 15 years' experience: $96,000 Source: Company files.

EXHIBIT 2: 2017 SALARY SURVEY DATA FROM PROFESSIONAL ASSOCIATIONS— INTERMEDIATE ENGINEERING POSITION (IN SUSD) Base Salary Total Cash Compensation Low Average High Low Average High Salary Survey 1 $70,600 Not available $95,000 Not available Not available Not available $72,250 $84,600 $96,400 $73,700 $89,100 $101,650 Salary Survey 2 Source: Created by the case authors based on the data for Salary Survey 1 which came from a 2017 report from Stac, and the data for Salary Survey 2 which came from a 2017 report from the Jamaica Society of Professional Engineers (JPSE). THE EMPLOYEE PERSPECTIVE Wanting to obtain some employee input, Apton spent the next couple of hours walking around and chatting informally with his employees about compensation and rewards. Unsurprisingly, he found that their opinions were varied. Some thought that money mattered most, but many others on the team put more value on the lifestyle aspects of the reward system. The latter group valued flex time, the collegial working environment, the weekly barbecues, and so on. One employee noted that she wanted a higher salary but commented at the same time that another employer "couldn't offer anything to make me want to leave." When he asked what stood out to them on their total rewards statement, only a few employees could remember the details in the document. Reading between the lines, Apton realized that they reviewed it when it came in but then mostly forgot about it. He began to worry that, while the statement had a lot of good information, it might not have enough impact. DECISION TIME Back in his office with time to review his thoughts, Apton sketched out his three main options on a pad of paper and pondered what to do. Should he offer Gayner the job at a lower salary and take the chance of being turned down? Should he give Gayner the salary he wanted and risk upsetting his other employees if they found out? Should he completely revamp his compensation system and increase salary levels for all of the engineers? He wasn't sure which option was the best choice. EXHIBIT 1: AVERAGE BASE PAY FOR CURRENT EMPLOYEES AT LEL (IN SCA) Average base pay for engineers with less than five years' experience: $78,000 Average base pay for engineers with between five and 10 years' experience: $85,000 Average base pay for engineers with between 10 and 15 years' experience: $96,000 Source: Company files.

Management, Loose-Leaf Version

13th Edition

ISBN:9781305969308

Author:Richard L. Daft

Publisher:Richard L. Daft

Chapter16: Motivating Employees

Section: Chapter Questions

Problem 4DQ

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