Published on June 23, 2015
The most effective compensation strategy is one that develops a clear link between: 1. Work that an employee is expected to perform (typically detailed in the job description); 2. Work that the employee performed (typically detailed in a performance evaluation); 3. and, finally, pay provided to each employee (typically determined through external survey and internal equity). In a 2-3 page paper, examine and elaborate on the interrelationship between these three links. In presenting your analysis, it would be beneficial to: • Select one position or classification that you are familiar with (Administrative Assistant, Human Resource Manager, Maintenance Worker, etc); • Detail how pay is determined for this position or classification based on the duties they are expected to perform (job description) and the manner in which they performed these duties (performance evaluation). Here’s an example: • I selected the position of Purchasing Manager. • The job description indicated the primary function of a Purchasing Manager is to plan, direct, and coordinate the activities of buyers, purchasing officers, and related workers involved in purchasing materials, products and services. • Our organization’s performance evaluation system states employee performance is segmented into one of four categories: outstanding, exceeds expectations, meets expectations, and does not meet expectations. Those in the outstanding category receive a 6% increase, those in the exceeds category typically receive a 4% increase, those in the meet category typically receive a 2% increase. There is no increase for those who do not meet expectations. • The external analysis (salary survey, which you can typically obtain online) indicated the monthly salary range at $4300 - $5200. • The internal analysis (the relationship of this position to similar positions in your organization) indicated this position is similar to Accounting Manager, and should be paid within the same monthly salary range of $4400 - $4900.