I need 600 words answering he questions on Developing a Market

.600 Words Total

DISCUSSION 1 (300 words)  

Answers will need to be 200 words

  response will need to be 100 words

DISCUSSION 2 (300 words )  

Answers will need to be 200 words

  response will need to be 100 words 

.........................................................................................................................................................................

Attachment 1;

Instructions: Answer discussion questions number one and two. Respond to two classmates’ answer for each question.

Question one: 

Discuss the basic building blocks of developing a market competitive pay system, including the relationship between internal and external equity. Respond to at least two of your fellow students’ postings.

Respond to classmate 1: 

Greetings to all,

Discuss the basic building blocks of developing a market competitive pay system, including the relationship between internal and external equity.

The basic building blocks of developing a market competitive pay system have four steps conducting strategic analyses, assessment of competitors pay practices with compensation surveys, integrating the internal job structure with external market pay rates and determining compensation policies.

• Conducting strategic analyses internal factors are fictional capabilities and financial condition and external market factors industry profile, competitor’s information and long-term growth prospect.

• Assessment of competitors’ pay practices with compensation surveys gathering data from the competitor’s wages, salaries and benefits to establish objectives for the pay system. This system will guide you on how the market is being run that you don’t under or over pay for any positons. All data collected will be used and enables compensation professional to obtain a realistic review of the competitor’s compensation practices. Thus, the objective for developing the pay system should also keep in line with the company’s goals and objectives.

• Integrate internal job structures wit external market pay rates this step will balance out any pay policies that will fit between managing cost and being able to attract and retain good employees.

• Compensation policies, the final step have 3 pay level market lead, market lag and market match:

o Market lead is where the company will compensate their employee higher than the market

o Market lag the company will compensate less than the market

o Market match the company will compensate equal as the market.

Human Resources department along with managers will gather date to create a market completive pay system. Based on what happened internally with compensation and benefits can be a huge effect externally. HR will have to current with the market to attract the right people for the job and be able to retrain them also.

Martocchio, J. J. (2011). Strategic Compensation: A Human Resource Approach 99th Ed.) Hoboken, NJ: Pearson Education, Inc. ISBN 978-0-13-432154-0. Retrieved from Ashford Edu. https://content.ashford.edu/books/Martocchio.7916.16.1/sections/ch07lev1sec1?search=building%20blocks%20#w76559

 
Respond to classmate 2:  

According to Martocchio (2017), “Market-competitive pay systems represent companies’ compensation policies that fit the imperatives of competitive advantage… Compensation professionals build market-competitive compensation systems based on the results of compensation surveys” (chapter 7.1). In other words, market-competitive pay systems utilize compensation to provide an advantage over competition within their marketed industry. For example, in the internet technology industry, it is not uncommon to see compensation packages used to attract and retain top talent. High salaries and generous work/life benefits are offered to potential and current employees to attract talent in what could be considered a limited pool of applicants, which does provide a competitive advantage.

 
There are four building blocks to a market competitive pay system: conducting strategic analyses, assessing competitors’ pay practices with compensation surveys, integrating the internal job structure with external market pay rates, and determining compensation policies. Strategic analysis tries to examine the external and internal factors that can affect a company from a market standpoint. Assessing pay practices through compensation surveys allows companies to determine the wage and salary range for comparable positions within their respective industries, which allows an organization the ability to adjust compensation pay practices, gaining a competitive advantage. Integrating the internal job structure with external market pay rates enable individual businesses to improve pay rates that reflect the external and internal value of a particular job position. Lastly, determining compensation policies is achieved through the cumulative data that is derived from the collection of compensation surveys and market research, which allows companies to then choose a compensation policy that fits in with their broader competitive strategy. 

 
References 

 
Martocchio, J.J. (2017). Strategic Compensation: A Human Resource Management Approach (9th Edition). Hoboken, New Jersey: Pearson Education, Inc. ISBN 978-0-13-432054-0 

Question Two:

Provide a brief overview of the job evaluation process, including the importance of compensable factors. Detail the compensable factors of a position you are familiar with and their impact on that position’s salary, and you may want to reference the job analysis and job description process, which form the foundation of job evaluation. Identify at least four pitfalls that exist for organizations that do not follow this process. Respond to at least two of your fellow students’ postings.

Respond to classmate 1:  

Greetings to all,

Provide a brief overview of the job evaluation process, including the importance of compensable factors. Detail the compensable factors of a position you are familiar with and their impact on that position’s salary, and you may want to reference the job analysis and job description process, which form the foundation of job evaluation. Identify at least four pitfalls that exist for organizations that do not follow this process.

1. Identify if a single versus multiple job evaluation techniques if not they will have handled separately.

2. Choosing the evaluation this committee can be comprised of rank and file employees or supervisors and union representatives. The committee should be knowledgeable of the evaluation process and understand each position.

3. Training the employees to able to conduct job evaluation, whereas the employees will need to understand the companies process objectives. Before applying the applicant should be experienced, knowledgeable and have applied practice previously.

4. Recording the job evaluation plan can clearly specify the job related criteria against which the jobs are evaluated. Not to mention should any legal issues arise all documentation can be used.

5. Being able to communicate with employees throughout the evaluation the employees will understand and accept the process and the results.

6. Having an appeal process will allow the reviewers to go through each case and also give the employees an opportunity to voice their opinion.

Thus the compensable factors include experience, education, working conditions, duties, responsibilities and they are addressed in order to help determine.

Pitfall that exit is organization any incomplete jobs elevation is personnel utilization a potential managerial candidate that skill is not being visible. Another issue budget evaluation can determine who get a bonus and who does not incorrect evaluation can hinder the budget. Job description should constantly be update in HR for future applicants. Based on three previously list can maintain moral in the company thus, lack of moral can lead to poor performance.

Martocchio, J.J. (2011) Strategic compensation: A human resource management approach (6th Edition). Upper Saddle River, New Jersey: Prentice Hall.

Root 111, G. (2015) Hearst Newspaper: What impact can an incomplete job evaluation have for a company? Retrieved http://smallbusiness.chron.com/impact-can-incomplete-job-evaluation-company-10854.html

Respond to classmate two:

 There are six steps to the job evaluation process which are described below:

1. Determining Single Versus Multiple Job Evaluation Techniques- This is where companies and organizations try to determine if the positions that they have available or are already in use need to be evaluated either by a single technique or are multiple methods required to achieve an extensive evaluation that takes into account compensable factors. For example, the position that I currently hold requires a person to have a college degree, be able to type 40 WPM, have adequate knowledge about Social Security programs, and be able to navigate software and databases proficiently. Additionally, the customer service experience is required as well. These factors were used by the agency to determine how to evaluate the worth of this position and assign a pay grade to it. Since there are so many compensable factors involved, it would be natural to assume that the agency uses multiple techniques to evaluate these positions.

 
6. Choosing the Job Evaluation Committee- According to Martocchio (2017), “Job evaluation is an important determinant of a job’s worth within many companies. All employees, regardless of their functions, wish to be compensated and valued for their efforts” (chapter 6.3). It is then natural to assume that employees need to have a voice in decisions concerning their pay. In pursuit of this job evaluation committees are formed from rank-and-file employees, supervisors, and managers, to determine and evaluate job classifications. 

 
1. Training Employees to Conduct Job Evaluations- Since job evaluations affect employees the most, which is natural for workers to acquire methods of possibly conducting and processing job evaluations. This way they can ensure that checks and balances are being used in job evaluations and that all legal criteria are being met. 

 
1. Documenting the Job Evaluation Plan- A complete and well-documented evaluation plan ensures that all legalities are being considered. Additionally, it can be used for training purposes (i.e. managers, employees, and job evaluation committees). 

 
1. Communicating with Employees- The job evaluation is important to many stakeholders on a personal level, as their results have a real-world effect on wages and pay. Therefore, formal communication with employees throughout the job evaluation helps to make sure that stakeholders understand and accept the job evaluation process and its results. 

 
1. Setting Up the Appeals Process- Every process can have its flaws, as they involve human errors. In response to this, companies have developed appeals processes that allow for case-by-case basis analysis and review of any mistakes and legal contentions that can arise from breakdowns at any level of the job evaluation process. 

 
Companies can fall into many traps if the employer administers an improper evaluation; for example, legal issues such as discrimination and other constitutional violations can occur. Communication can become limited and in some cases, broken beyond repair. Conflict can enter the picture, which creates a toxic work environment. Last, but not least, the competitive advantage that a company seeks can become jeopardized, as if all of the other three problems exist within a company, then the company becomes less attractive to potential employees, customers, and business partners. 

 
Reference 

 
Martocchio, J.J. (2017). Strategic Compensation: A Human Resource Management Approach (9th Edition). Hoboken, New Jersey: Pearson Education, Inc. ISBN 978-0-13-432054-0 

 
Here is week 3’s lecture you may reference to to help answer questions and respond to classmates.  

In Week 3, this course will discuss the components of developing a market competitive pay system as well as the job evaluation process. To develop a competitive plan, HR managers need to use a variety of practices that will make up the plan to be competitive but also adhere to the organizations overall goals and plans. Market-competitive pay systems play a significant role in attracting and retaining the most qualified employees for the organization (Martocchio, 2017).

HR professional should offer a competitive salary to attract and retain talented employees without damaging the organization’s bottom line (Bisk, 2018). To determine a competitive pay system for employees, organizations need to review internal job descriptions and salaries and then utilize the compensation benchmarking process to understand what competitors are paying for a similar position in the industry. For an organization to develop an appropriate and competitive compensation package there are a few steps the organization can take. For example, the organization should know the market in which is participates in to determine if the organization pay is on par with its competitors. There needs to be an assessment of competitor’s compensation and pay policies. This can be accomplished via salary surveys which collect day about salaries, and benefits, among various employers for specific jobs (HRcouncil.ca, nd). Salary surveys are conducted with “numerous employers to determine pay levels for specific job categories and are generally conducted either by region, sector or job classification for the purposes of comparability.” (HRcouncil.ca, n.d.). Salary surveys can provide benchmarking information for comparing salaries and benefits. Organizations also need to complete an internal analysis which can include a SWOT analysis of its compensation practices. The survey results can also be used in completing the SWOT analysis. A SWOT analysis analyses the organizations strengths, weaknesses, opportunities and threats. In completing this analysis, the organization will be able to identify all factors either favorable or unfavorable, necessary to obtain the desired outcome.

Organizations can be competitive by offering other means of compensation other than a salary. For example, more and more organizations are providing employee stock ownership plans, deferred compensation, flexible work schedules or remote working options and contributions to retirement plans. Insurance plans such as health, dental, life and disability are also other “perks” that organizations are providing to be competitive with a compensation and benefits package.

Job evaluation is the “systematic process for assessing the relative worth of jobs within an organization.” (HRcouncil.ca, 2018). An analysis of each position’s responsibilities, knowledge, and skill requirements is used to measure the value of the job to the employer. This evaluation process allows the organization to determine the appropriate pay rate. As an organization creates new job or a reclassification of a job, a job evaluation should be completed so the organization knows it is hiring based on its needs. The job evaluation often determines which jobs should receive higher compensation as compared to other jobs within the organization. A job analysis is the “systematic study of a job to determine which activities and responsibilities it includes, its relative importance to other jobs, the personal qualifications necessary for performance of the job and the conditions under which the work is performed.” (SHRM, 2017). It allows HR to understand what tasks are important and sets the expectation for other HR activities such as recruitment and selection, relative training programs and performance appraisals. The job analysis is used to create a job description which is also considered by the organization when determining the appropriate compensation package.

Overall, there are many factors and analysis an organization needs to review and complete when determining the appropriate compensation package. Internal and external factors need to be considered for the package to be competitive. Competitive compensation package will allow organizations to attract and maintain the best qualified employees.

Please review the Total Rewards (Links to an external site.) video which will provide an overview of total reward compensation plans.

________________________________________

References

Bisk. (2017). Developing a competitive pay practice in your organization (Links to an external site.). Retrieved from https://www.villanovau.com/resources/hr/developing-competitive-pay-practices/#.W9Zar7hRfIU

Gregg Learning. (2016). Total rewards (Links to an external site.) [Video file]. Retrieved from https://www.youtube.com/watch?v=LPdEW21QfDY

Hrcouncil.ca. (n.d). Compensation & benefits (Links to an external site.). Retrieved from http://hrcouncil.ca/hr-toolkit/compensation-salary.cfm

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

Society for Human Resource Management. (2018). Performing a job analysis (Links to an external site.). Retrieved from https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/performingjobanalysis.aspx