Your Turn Sled DOg Software
Running head: Case Study
Your Turn: Sled Dog Software
Answer 1: Before determining any pay policy for a company like Sled Dog it is important to understand the location of Sled Dog that is where company is planning to hire new recruits, which is Larmie, Wyoming. There are various factors which has to be kept in mind such as cost of living ,number of graduate schools in surrounding areas from where graduates can be recruited , number of software companies and their pay rates in that area, and last but not the least availability of experienced professionals in the surrounding areas. Once all the mentioned factors are determined, company can decide its own pay strategy. My recommendation would be that, the pay structure should be more market driven rather than product driven. The pros of this approach will be minor haggling which will end up as best deal between employer and employee. Cons of this kind of policy options is that many times it has been observed that the employer tries to take advantage of the situation by bargaining on salary amount. I would further suggest that the initial base pay should be around 67% and remaining percentage of the compensation should be of other components such as benefits, options, bonus like in exhibit 7.4 where company C follows this pay mix as part of their compensation structure. Answer 2: As per the Economic Research Institute (www.erieri.com) the average salary of a marketing manager is $ 97,081 in Wyoming for year 2013. Now several assumptions I am keeping in consideration, since Sled Dog Software is about to venture in the market, so company might not be in a position to offer the existing market rate to the new hire. I would suggest a starting salary of $70000 K for this
Your Turn: Sled Dog Software
Answer 1: Before determining any pay policy for a company like Sled Dog it is important to understand the location of Sled Dog that is where company is planning to hire new recruits, which is Larmie, Wyoming. There are various factors which has to be kept in mind such as cost of living ,number of graduate schools in surrounding areas from where graduates can be recruited , number of software companies and their pay rates in that area, and last but not the least availability of experienced professionals in the surrounding areas. Once all the mentioned factors are determined, company can decide its own pay strategy. My recommendation would be that, the pay structure should be more market driven rather than product driven. The pros of this approach will be minor haggling which will end up as best deal between employer and employee. Cons of this kind of policy options is that many times it has been observed that the employer tries to take advantage of the situation by bargaining on salary amount. I would further suggest that the initial base pay should be around 67% and remaining percentage of the compensation should be of other components such as benefits, options, bonus like in exhibit 7.4 where company C follows this pay mix as part of their compensation structure. Answer 2: As per the Economic Research Institute (www.erieri.com) the average salary of a marketing manager is $ 97,081 in Wyoming for year 2013. Now several assumptions I am keeping in consideration, since Sled Dog Software is about to venture in the market, so company might not be in a position to offer the existing market rate to the new hire. I would suggest a starting salary of $70000 K for this