Your pay structure should include salary grades and salary ranges to support your company in its ability to
attract, motivate, and retain a quality workforce consistent with the Compensation Strategy. Your project
document should include a Microsoft Excel (or comparable) workbook including the following: Develop a pay
structure to support a company in its ability to attract, motivate, and retain a quality workforce consistent with a
company's Compensation Strategy Refer to the External Market Summary document provided
Identify your method for calculating your salary structure (e.g., manual, excel, straight or curved line)
Calculate your recommended Salary Structure (including salary grades and ranges)
o Ensure the range progression is reasonable and competitive based on the market value of jobs. State the %
progression between each salary grade
o Also, ensure the salary range spreads are appropriate for your professional/management jobs. State the
salary range spread % from the minimum to maximum of the range
o Include your formulas on your worksheets
Create a Compa Ratio Report including 20 hypothetical employees managed within the 12 jobs
o Identify any employees paid below the minimum or above maximum
o Identify the compa ratio of each employee and the company-wide compa ratio
o Identify the total cost of your adjustments to a minimum and the new compa ratio
o Identify the merit increase budget and the new compa ratio
o Identify an equity adjustment budget (if appropriate) and the new compa ratio
o What is the total cost of your new compensation plan? What is the beginning and ending compa ratio for your
company?
Ensure your plan is implementable, i.e.,
o Cost-effective
o A reasonable number of employees under minimum or over maximum
o A reasonable compa ratio
o Are there any issues preventing implementation
o Will top management support your recommendations? Provide a written recommendation with a summary
of the plan's competitiveness to the market and a summary of costs to obtain top management approval Due
Sample Solution