Compensation and Benefits-Endothon Task

Compensation and Benefits-Endothon Task

The Three New Positions and Their Salaries, as well as Changes to Existing Salaries.

A1.  Justify the placement and salaries of the three new positions.

The role of the Brand Manager is an intricate part of the organization, including the development and management of marketing programs (Cui et al., 2014). These roles are similar to those of the marketing manager. Therefore, for this position, I would put the salary at $107,370. This salary range is derived from the Market Rewards Survey, which draws a 25% rate to the marketing manager position (Thompson & Yurkutat, 1999). I settled on the 25% rate because the individuals seeking this position must have marketing experience of 5 years and above but not more than 3 years of managerial experience. Therefore, placing the salary at $107,370 will create room for individuals with higher levels of sales experience to apply for this position instead of candidates with more experience in management or leadership.

The Product Sales Representative (1) must have knowledge of Business administration/management and more than 3 years of working experience in customer service. The position of a product sales representative comes with a lot of travelling (Bednaříková et al., 2011). Therefore, the individual selected for this position must have a higher level of experience that exceeds the basic requirements highlighted in the job description. Additionally, the salary needs to be placed at the 25% rate, which amounts to $83,340 annually.

Product Sales Representative (2)- Both product sales representatives will perform the same roles, including cultivating new relationships with clients and expanding existing relationships. A product sales representative will focus on building and managing sales funnels and further representing the company in different trade shows. I placed the salary of the second product sales representative at $64,000 annually. The salary for this position was based on the lower 10% rate in the Market Rewards Survey at $63,690 but pushed up to $64,000 (Thompson & Yurkutat, 1999). I placed the second customer representative’s salary lower than that of the first product sales representative to allow any other individual with a higher level of experience to be brought in at a higher salary.

Using the 23 positions, create a pay grade and ranges table.

B1. Describe a strategy to address original salaries now found outside the proposed ranges. Strategy:

Upon reviewing the market rewards survey at Endothon, I got the opportunity to determine the pay ranges. The pay grades were structured by examining the current job value structure, which was used in determining the base or minimum salaries at the midpoint, making it easier to develop a broader pay scale for establishing the maximum pay (Armstrong & Brown, 2017). The pay structure in Endothon was supposed to match that of the market trends to ensure the salaries offered were competitive. Salaries that fall below the minimum amount according to the pay grade will be raised to ensure they are in line with the minimum salary requirement as per the pay grade. Consequently, salaries that exceed the maximum amount reflected by the pay grade will be frozen to align with the pay grade. Individuals with salaries that fall below the minimum pay will be allowed to participate in new programs, enabling them to advance their skills and get promoted within the company. This way, employees will be bumped to the next pay grade as the hiring of new employees will be matched with the newly established pay grade.

B2. Justify your pay grades and ranges, commenting on attraction and retention strategies.

There was a need to restructure the job value structure to ensure the retention of the company’s key talent. The size of Endothon will double within the next six months; hence, there was a need for more employees. Considering the competitive nature of the technology market, ensuring flexibility in the pay structure is very essential (ACAS, 2009). The pay grades were grouped based on the positions and the qualifications of such positions, which included the ability, skills, and knowledge required for each role. Pay grades 1 and 2 were given low ranges because, in most cases, these are entry-level positions. While employees are issued with these positions, they have the opportunity to attend more training in order to acquire the skills that will enable them to advance within the company. The pay grades increase with an increase in salaries, and because Endothon intends to retain the best employees and lead in the market, it gives its employees salaries that will motivate them to improve their productivity. By offering larger pay ranges, employees are given the information they require to understand their position within the company and what they can do to advance in the future.

Variable Pay Option for Each of the Three Pay Grades and Why Each Recommendation Would Motivate Individuals in That Particular Pay Grade.

Recommendation 1: There is a need for bonuses to be given to employees in grades 1 and 2 for certain achievements/tasks completed in each department. By giving out individual-based bonuses, the company could directly tie into administrative assistants, help desk techs and customer service reps. For instance, customer service representatives that emerge among the top 3 can be awarded a bonus of $250 for selling the highest number of products. The company could develop a plan for tiered individual performance for these three positions. Bonuses based on individual performance will enable the company to employ KPIs to define a clear role path for entry levels.

Recommendation 2: Pay grade 3 employees to be left to make their own expectations and goals to follow. Quarterly bonuses are to be issued at 5-15% based on how these goals are achieved, with consideration of how long the employee has worked for the company and their salary. Most of the employees who fall under pay grade 3 have worked for the company for some time; hence, they are considered to be skilled in their areas of work. The company would not want to lose such employees because they are an asset (ACAS, 2009). Therefore, giving them bonuses once they have achieved their individually set goals could motivate them to focus on enhancing their performance.

Recommendation 3: Pay grades 4-7 to occupy executive-level positions. Therefore, such individuals should be given stock and profit-sharing options and even retention bonuses. All these bonuses will be determined by the pay grade the employee is in and the number of years he/she has worked for the company. These employees are considered to have the most impact and experience, having worked for the company for the longest period. Additionally, pay grade 4-7 employees have invested more in the company’s overall performance and play significant roles in ensuring continuous growth and profitability. Therefore, Endothon can show such employees appreciation for long-term service by giving them stock and profit-sharing options, as this will motivate them to enhance their performance as well as that of others in the company.

References

Acas. (2009). Job Evaluation: Considerations and Risks.

Armstrong, M., & Brown, D. (2017). Job evaluation versus market pricing: Competing or combining methods of pay determination? Compensation & Benefits Review, 49(3), 153-160.

Bednaříková, M., Ehlová, Z., Kerlesová, V., Vávra, J., & Pražáková, T. (2011). Importance of employee recruitment and selection for sales representative position with emphasis on their characteristics. Scientific papers of the University of Pardubice. Series A, Faculty of Chemical Technology. 17/2011.

Cui, A. P., Hu, M. Y., & Griffith, D. A. (2014). What makes a brand manager effective?. Journal of Business Research, 67(2), 144-150.

Thompson, M. A., & Yurkutat, J. (1999). Rewards in a global context. Compensation & Benefits Review, 31(4), 69-74.

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Revise the attached “Current Job-Value Structure” to enable internal reward equity by doing the
following:
• Update the salary information for the 20 current employees, as necessary.
• Add in the three new positions, one brand manager and two product sales representatives, with their
anticipated salaries.

Compensation and Benefits-Endothon Task

Note: You must base your revisions on the attached “Brand Manager Job Description,” “Market Rewards
Survey,” and “Product Sales Representative Job Description.”
1. Justify the salaries and placement of the three new positions, one brand manager and two product sales
representatives, within the revised job-value structure.
B. Create a pay grade and ranges table that addresses the current and new roles by using your revised jobvalue structure and all other attachments.
1. Describe a strategy to address the original salaries found in the attached “Current Job-Value Structure”
that might now be outside the proposed ranges.
Note: If the original salaries are not outside the proposed ranges in your pay grade and ranges table,
describe a strategy that you would use if they were (green and red circle rates.)
2. Justify the pay grades and ranges in the table, commenting on attraction and retention strategies.
C. Recommend one distinct variable pay option to motivate employees in three different pay ranges from
part B, including a justification of why each recommendation would motivate individuals in that