Designing

a Pay Structure
Name: Cristina Obregon
Date: 01/25/2016

A: Create a job description for the Benefits Manager position using O*NET

Job Summary
Plan, direct, or coordinate benefit activities of an organization.

Essential Job Tasks

*Design, evaluate and modifiy benefit policies to ensure programs are current, competetitive, and comply with legal requirements.
*Direct preparation and distribution of written and verbal information to inform employees about benefits
*Administer and direct employee benefit programs, including the integration of benefit programs following mergers and acquisitions.
*Fulfill all reporting requirements of all relevant government rules and regulations including ERISA.
*Supervise employees and subordinates
*Develop operating strategies, plans and procedures
*Provide information to supervisors, co workers, and subordinates by telephone, in written form, email or in person.
*Interview employees, customers, or others to collect information
*Develop constructive and cooperating work relationships in the workplace.
*Analyze information and evaluate results

Job Context
Indoor, environmentally controled, telephone, contact with others.

Knowledge, Skills and Abilities

*Knowledge of principals and procedures for personnel recruitment, selection, training, benefits and labor
relations.
*Knowledge of business and management principles involved in strategic planning, resource allocation and
coordination of people and resources.
*Knowledge of laws, legal codes, court procedures, precedents, government regulations and agency rules.
*Ability to read, understand and communicate information and ideas in writing and speaking.
*Ability to use logic and reasoning to identify strengths and weaknesses of alternative solutions or conclusions.
*Knowledge of the English language, meaning, spelling, rules and grammar.
*Understand written sentences in work related documents.
*Ability to engage in technological software such as Blue Chip Computer Consultants HumaNET.
B: Calculate the job evaluation points; provide a rationale
Job Evaluation for Front Desk Receptionist
Degree Weight Points
Skill (50%)
-Education level 1 25% 25
-Technical skills 1 25% 25
Responsibility (30%)
-Scope of Control 1 10% 10
-Impact of Job 2 20% 40
Effort (20%)
-Degree of Problem
Solving 1 10% 10
-Task complexity 1 10% 10
Total Points 120
Additional Rationale: Has the lowest amount of evaluation points in the pay range, job has almost no impact.

Job Evaluation for Administrative Assistant

Degree Weight Points
Skill (50%)
-Education level 1 25% 25
-Technical skills 1 25% 25
Responsibility (30%)
-Scope of Control 1 10% 10
-Impact of Job 2 20% 40
Effort (20%)
-Degree of Problem
Solving 2 10% 20
-Task complexity 1 10% 10
Total points 130
Additional Rationale Has a difference of 10 points with Receptionist, tasks are very similar as well as position.

Job Evaluation for Payroll Assistant

Degree Weight Points
Skill (50%)
-Education level 2 25% 50
-Technical skills 2 25% 50
Responsibility (30%)
-Scope of Control 1 10% 10
-Impact of Job 2 20% 40
Effort (20%)
-Degree of Problem
Solving 2 10% 20
-Task complexity 2 10% 20
Total Points 190
Additional Rationale Payroll is in an exact department in HR, therefore tasks become greater and specific.
Job Evaluation for Operational Analyst
Degree Weight Points
Skill (50%)
-Education level 3 25% 75
-Technical skills 3 25% 75
Responsibility (30%)
-Scope of Control 2 10% 20
-Impact of Job 2 20% 40
Effort (20%)
-Degree of Problem
Solving 3 10% 30
-Task complexity 2 10% 20
Total Points 260
Additional Rationale

Job Evaluation for Benefits Manager

Degree Weight Points
Skill (50%)
-Education level 3 25% 75
-Technical skills 3 25% 75
Responsibility (30%)
-Scope of Control 3 10% 30
-Impact of Job 3 20% 60
Effort (20%)
-Degree of Problem
Solving 3 10% 30
-Task complexity 3 10% 30
Total Points 300
Additional Rationale Has subordinates, greater tasks, and big position.
C1: If there were any outliers, what would you do?
If there were any outliers, I would set up a procedure in order to evaluate the outlier and determine whether
or not it is making the evaluation unbalanced, and then I would proceed to fix it.

C2: Calculate the weigthed means (for base pay) for each benchmark job.
Receptionist # incumbents Total incumb. Average Base Weighted Avg
A 1 9 21000 2333.33
B 2 9 22000 4888.89
C 1 9 18000 2000.00
D 2 9 21000 4666.67
E 2 9 18500 4111.11
F 1 9 17500 1944.44
19944.44
Admin. Assistant
A 4 24 25000 4166.67
B 4 24 31000 5166.67
C 3 24 30000 3750.00
D 5 24 33000 6875.00
E 4 24 29000 4833.33
F 4 24 28000 4666.67
29458.33
Payroll Assistant
A 2 13 35000 5384.615385
B 3 13 34000 7846.153846
C 1 13 35000 2692.307692
D 3 13 35000 8076.923077
E 2 13 36000 5538.461538
F 2 13 29000 4461.538462
34000
Ops Analyst
A 2 20 55000 5500
B 4 20 57000 11400
C 3 20 56000 8400
D 5 20 58500 14625
E 3 20 59000 8850
F 3 20 54000 8100
56875
Benefits Manager
A 1 10 62000 6200
B 2 10 61500 12300
C 1 10 60000 6000
D 3 10 64000 19200
E 2 10 63000 12600
F 1 10 66000 6600
62900
D1: Conduct simple regression to create a market line by entering
the job evaluation points (on the X axis)
and the respective weighted average market base pay (on the Y axis) for each benchmark job
Job Evaluation Weighted
points average $
x y
Receptionist 120 19944.44
Admin. Assistant 130 29458.33
Payroll Assistant 190 34000.00
Ops Analyst 260 56875.00
Benefits Manager 300 62900.00

Chart of Market Pay Line

Market Pay Line

70000.00
y = 228.19x - 5003.3
R = 0.95968
60000.00

50000.00
Base Pay

40000.00

Weighted average $ y
30000.00
Linear (Weighted average $ y)
20000.00

10000.00

0.00
0 50 100 150 200 250 300 350
Job Evaluadon Points

Slope 228.19x
Intecept -5003.3
Equation of the line y = 228.19x- 5003.3

E1: What is your R-squared (variance explained)?

0.95968
E2: Is it sufficient to proceed? Why is a high R-squared a good thing?
Yes, it is sufficient to proceed. A high R squared means that the evaluation of the points was done accurately.
Means the level of tasks, scope of control, duties and responsabilities aren't off or unprecise.
F: Calculate the predicted base pay for each benchmark job
Slope J.E. Points Intercept
Receptionist 228.19 120 -5003.30
Admin. Assistant 228.19 130 -5003.30
Payroll Assistant 228.19 190 -5003.30
Ops Analyst 228.19 260 -5003.30
Benefits Manager 228.19 300 -5003.30

G: Adjust the predicted pay rates (3%) to determine the base pay rate you will offer for each benchmark job
Predicted 1.03
Receptionist 22379.50 23050.89
Admin. Assistant 24661.40 25401.24
Payroll Assistant 38352.80 39503.38
Ops Analyst 54326.10 55955.88
Benefits Manager 63453.70 65357.31

H: Create pay grades by combining any benchmark jobs that are substantially comparable for pay purposes.
Clearly label your pay grades and explain why you combined any benchmark jobs to form a grade.
Grade A 100 - 180 Front Desk Receptionist and Admin. Assistant are very similar in salary and tasks.
Grade B 190 - 250 Payroll Assitant
Grade C 260 - 290 Operations Analyst
Grade D 290 - 300 Benefits Manager
Grade E 300 - 350 Director of Regional Operations

I: Use your answers to Task H to determine the pay range (i.e., minimum and maximum) for each pay grade.
Adjusted pay Average (mid) Minimum Maximum
Grade A
Front Desk Receptionist 23050.89 24226.07 16958.25 31493.89
Admin. Assistant 25401.24
Grade B
Payroll Assistant 39503.38 39503.38 27652.37 51354.39

Grade C
Operations Analyst 55955.58 55955.58 39168.906 72742.254

Grade D
Benefits Manager 65357.31 65357.31 45750.117 84964.503
Grade E
D. Regional Operations 70058.025 70058.025 49040.61 91075.433
Chart of Pay Policy Line with Grades and Ranges

Pay Policy Line

100000.00

90000.00

80000.00

70000.00

60000.00
Salary ($)

Average (mid)
50000.00
Minimum
40000.00
Maximum
30000.00
Linear (Average (mid))
20000.00

10000.00

0.00
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Grades A B C E
D
Pay Structure
J: Given the pay structure you have generated, consider the following:
J1: Explain the process for putting non-benchmark jobs into the pay structure
In order to determine the non-benchmark jobs and their place in the pay structure, I did the following:
: Develop a job description for the non-benchmark jobs.
: After the job description is done, develop the job evaluation points and total them up.
: Once the points are final, asses where the points fit in the pay grade and then as a whole in the pay structure.

J2: Does this pay structure make good business sense? Is it consistent with the firm's mission?
The pay structure does make good business sense. It entails what an entry level receptionist could make and one
can directly make comparisons between every job listed.
The firm's mission is to creat customized and technically proficient electrical engineering for regional clients.
Yes, it is consistent with the firm's mission because as long as they are able to incentivize and motivate their
employees with a good pay structure, they will be able to deliver the best outcomes for their clients.

J3: What are the implications of this pay structure for other HR systems, such as retention and recruiting?
The implications for this pay structure are the following:
: Since we are paying our employees 3% above the market, we are able to retain employees more because they
feel like they are compensated more than the others as well as establishing our advantage to the competition.
: When recruiting, it is important that we communicate to the candidates that we have an organized pay structure
that is able to keep them content.
: When speaking of promotions, it varies on a case by case basis. It depends on the candidate and the position
they are being interviewed for. If the job comes with the opportunity of a promotion, then it is more attractive
for the dandidates. In our case, at least 4 out of the 5 jobs in our pay structure have internal opportunities to
progress within the company.
uirements.

acquisitions.