Imagine you are the HR manager for a new company just opening its doors in your community. The CEO has asked you to prepare the initial guiding principles you will use to define the company’s compensation philosophy regarding how the company compensates its employees.
Complete the following:
- Describe the type of business, the number and types of employees (exempt and non-exempt), and the customer base you will use as your example company for this assessment, as well as the state and city or area of the state where your company is located.
- Describe the factors will be used to determine salary decisions (for example, appropriate qualifications, contributions, performance, and budget considerations).
- Discuss where the company wants to fit regarding compensation in the industry and related market. Bottom quartile? Industry average? Top quartile?
- Discuss whether the company will reward top performers with incentive pay.
- Discuss the role benefits (health, 401(k), et cetera) will play in the overall compensation package. Does the company want the benefits plan to be below market, at market, or above market? Why?
- Describe how other existing businesses in your community affect the guiding principles for your compensation guidelines. You can reference the “Overview of BLS Wage Data by Area and Occupation” from the Bureau of Labor Statistics to help you research information for your response.
Your assessment should also meet the following requirements:
- Written communication: Written communication is free of errors that detract from the overall message.
- Formatting: One-inch margins, appropriate headers, and a title page.
- Length: 1–2 double-spaced pages.
- Font and font size: Times New Roman, 12 point.
Important: You will use this same company as the focus for the upcoming assessments in this course as well.