Design a pay structure - Essay Example

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Therefore, the human resource department must make a compensation structure that is termed as fair, competitive, motivating, and easy to…
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Download file to see previous pages The three main compensable factors that are identified are responsibility, Skill, and effort with each compensable factor having two sub-factors or degrees (Burke, 2008). For instance, the skill factor is made up of educational and technical know-how. Responsibility is made up of impact of the job and scope of control. Effort is made up of the degree of solving problems and how complex tasks are.
Outliers ought to be done away with since the will not offer representativeness for the sample (Armstrong, 2002). This implies that the will be extreme data points that need to be taken consideration of in a separate manner. Therefore, in the present data set, there is no extreme outliers that need to be taken concern of.
The base bay weighted means will be computed for every benchmarked job. Weighted means will be computed to represent the market data well (Milkovich & Newman, 2008. The simple mean will be computed by summing up the base pay rates and then subsequently dividing them by the total number of organizations, which are a total of six in the present case. The large and small companies in this case will be given the same weights since we are using a simple mean. The weighted mean is good since it offers equal weight for every incumbents wage, job and hence it qualifies as a representative (Burke, 2008).
To establish the weighted average base the following is used to come up with the weighted average pay for front desk receptionist job where there are nine job in office in all the six companies. (1/9 X2100) + (2/9 X 2200) + (1/9 X 1800) + ()2/9 X 18500) + (1/9 X 17500)=$19944.44
To come up with the given pay rates provide a three percent pay tactic across the families of jobs. Excel was used to multiply the pay rates that were predicted for every benchmark job (Burke, 2008). The benchmark jobs were multiplied by 1.03. The computations came up with pay rates that were ...Download file to see next pagesRead More
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