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Strategic Compensation

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September 14, 2015 Strategic Compensation Chapter 7 Discussion Questions 1. You are a compensation analyst for Worry-Not Insurance Company, which is located in Hartford, Connecticut. Define the relevant labor market for insurance adjusters and data clerk. Describe the rationale for your definition. In my opinion I would be responsible for administering company compensation programs. This would be the market of how much the rates for these jobs are. I would evaluate and analyze salary, determine pay grades of the now labor market, and also I would get input on the compensation surveys. I would pre establish guidelines to perform the functions of the job. I would than report findings to the manager. 2. Refer to table 7-2. Cross out salaries 26-35. Calculate the mean and median for this reduced data set. Mean- (1,337,500) based on 35 salaries = 38,214.49 Case Study 1. What are some strategic considerations in establishing a pay structure at Nutriment? Mr. Stewart needs to start off with the strategic analysis. In the planning the strategic compensation plan or strategy for the organization the company has to look into two individual – level consequences of a pay structure decisions, as internal pay standing and external pay standing. The company can use detailing of the job description and job analysis to maintain an up to date record of the suitable compensation plan for its employees based on various factors such as seniority, job performance, and decision making. 2. Should Jack suggest a pay policy to lead, lag, or match the market. Explain your recommendation? Based on the case, the organization is opening position for 10 scientists and 5 5 administrative staff. This would definitely mean a different pay program. I would recommend…...

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