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The E-Sonic Compensation System: External Market Competitiveness

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The E-Sonic Compensation System: External Market Competitiveness
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The e-sonic Compensation System:
External Market Competitiveness

LIR 561: Compensation Systems
Professor: Joe Martocchio
November 15, 2005

Team 1:
Ka Man Cheung
Christine Layne
Gene Paik
Tamica Taylor
Matt Williams

Table of Contents

1. Executive Summary 3

2. Pay-policy Mixes 6

a. Business Development Job Structure 6 b. Administrative Job Structure 7 c. Software Engineering Job Structure 8 d. Market Research Job Structure 9 e. Customer Service Job Structure 11

3. Pay-policy level decision 13

4. Compensation Survey 15

a. Choose competitors 15 i. Industry type: 15 ii. Employee number: 16 iii. Union Status: 16 b. Benchmark jobs 16 c. Reconcile differences between benchmark jobs and e-sonic positions 17 d. Update Salary data for inflation 18

5. Implementation of Salary Survey Results 19

a. Report and interpret results 19 i. Business Development 19 ii. Administrative 23 iii. Software Engineering 27 iv. Market Research 31 v. Customer Service 34 b. Integrate external and internal structures by creating pay grades and ranges 39 i. Decide upon number of pay grades 39 ii. Decide pay ranges 40 c. Evaluate and summarize decisions made for each job structure 43 i. Business Development 43 ii. Market Research 43 iii. Administrative 44 iv. Software Engineering 46 v. Customer Service 46

1. Executive Summary

The focus of this section of the analysis is to decide on the allocation of pay methods in order to motivate and retain employees while also achieving external market consistency. The first step was to decide on an allocation mix consisting of base pay, short term incentives, long term incentives, and benefits for each individual job structure. Factors such as importance to strategic goals, need for retention, long term impact, and skill level factored into this decision. The result was
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