Discuss Strategic compensation

Please read each passage below and respond to each part. I DO NOT need a reference or title page, however please provide the reference(s) underneath the passage. Please label as I have done below, example Part 1 and place your response along with the reference. Please keep each one on the same document! Please cite properly and use correct grammar. DUE by 6PM CST 5/23/22

Part 1 

relation to other jobs in an organization. It’s the bridging gap between the relative worth of a position to the organization and the pay range structure into which the position falls. This ensures that everyone is paid their worth and that different jobs have different entry and performance requirements. A job evaluation will recognize differences in the worth of a set of jobs to establish pay differentials (Martocchio, 2017). A job evaluation can eliminate paying high wages and salaries to employees who hold jobs and positions not requiring great skills, effort, and responsibility; paying beginners less than they are entitled to receive; deciding rates of pay based on seniority rather than ability; and paying unequal wages and salaries based on race, sex, religion or political differences. Compensable factors are the criteria used in evaluating a job and determining the salary level a particular job is due. They represent the aspects that a company values and are willing to compensate. Therefore, compensable factors are typically identified and classified based on the company’s values and culture. Examples of compensable factors are experience, education, responsibility, the complexity of duties, consequences of error, working conditions, and mental, physical, as well as visual demands. According to The Equal Pay Act of 1963, skills, responsibilities, mental and physical effort, and working conditions are essential compensable factors.

A store planning manager/supervisor has several compensable factors that determine their pay. Those factors are education, at least a high school education, and at the most, a BA in business. The required experience is at least three years as an assistant manager, two years working in-store set up teams, or as a team leader. Responsible for leading teams of 20 people, ensuring stores are finished by deadlines, keeping team payroll within budget, communication skills,  and capable of installing the latest technology in the stores. The more experience the individual has, the better the starting pay, usually around $16 to $20. If the person has a business degree, the starting pay can increase. On the lower end, if the person has just a couple of years of retail experience and their education is a high school diploma, the pay usually starts around $12 to $13.

When organizations do not perform a job evaluation, it can strongly impact company compensation. For example, without a job evaluation, there is no job description, which in turn hinders competitive compensation because HR cannot compare jobs with competitors. If management does not know the value of a job, then there is the possibility people will be paid too high, spreading resources too thin, and requiring cutbacks, maybe in research or innovation (Martocchio, 2017). The employee may also receive too low pay, causing high turnover and difficulty attracting top talent. The absence of a job evaluation may also cause gender and race pay gaps. Another issue concerns associate appraisals. If HR does not understand the KSAs needed to perform a job, then there are no measurable criteria to base the employee’s performance on; therefore, there would be no consistency in appraisals, making them useless.

Martocchio, J.J. (2017). Strategic compensation: A human resource management approach  (9th ed.). Pearson.

Part 2

Please read each passage below and respond to each part. I DO NOT need a reference or title page, however please provide the reference(s) underneath the passage. Please label as I have done below, example Part 1 and place your response along with the reference. Please keep each one on the same document! Please cite properly and use correct grammar. DUE by 6PM CST 5/23/22

Part 1 

relation to other jobs in an organization. It’s the bridging gap between the relative worth of a position to the organization and the pay range structure into which the position falls. This ensures that everyone is paid their worth and that different jobs have different entry and performance requirements. A job evaluation will recognize differences in the worth of a set of jobs to establish pay differentials (Martocchio, 2017). A job evaluation can eliminate paying high wages and salaries to employees who hold jobs and positions not requiring great skills, effort, and responsibility; paying beginners less than they are entitled to receive; deciding rates of pay based on seniority rather than ability; and paying unequal wages and salaries based on race, sex, religion or political differences. Compensable factors are the criteria used in evaluating a job and determining the salary level a particular job is due. They represent the aspects that a company values and are willing to compensate. Therefore, compensable factors are typically identified and classified based on the company’s values and culture. Examples of compensable factors are experience, education, responsibility, the complexity of duties, consequences of error, working conditions, and mental, physical, as well as visual demands. According to The Equal Pay Act of 1963, skills, responsibilities, mental and physical effort, and working conditions are essential compensable factors.

A store planning manager/supervisor has several compensable factors that determine their pay. Those factors are education, at least a high school education, and at the most, a BA in business. The required experience is at least three years as an assistant manager, two years working in-store set up teams, or as a team leader. Responsible for leading teams of 20 people, ensuring stores are finished by deadlines, keeping team payroll within budget, communication skills,  and capable of installing the latest technology in the stores. The more experience the individual has, the better the starting pay, usually around $16 to $20. If the person has a business degree, the starting pay can increase. On the lower end, if the person has just a couple of years of retail experience and their education is a high school diploma, the pay usually starts around $12 to $13.

When organizations do not perform a job evaluation, it can strongly impact company compensation. For example, without a job evaluation, there is no job description, which in turn hinders competitive compensation because HR cannot compare jobs with competitors. If management does not know the value of a job, then there is the possibility people will be paid too high, spreading resources too thin, and requiring cutbacks, maybe in research or innovation (Martocchio, 2017). The employee may also receive too low pay, causing high turnover and difficulty attracting top talent. The absence of a job evaluation may also cause gender and race pay gaps. Another issue concerns associate appraisals. If HR does not understand the KSAs needed to perform a job, then there are no measurable criteria to base the employee’s performance on; therefore, there would be no consistency in appraisals, making them useless.

Martocchio, J.J. (2017). Strategic compensation: A human resource management approach  (9th ed.). Pearson.

Part 2