Chat with us, powered by LiveChat BUS 434 Compensation & Benefits Management Week 3 Foundations of a Compensation Strategy | acewriters

Running Head: Foundations
of a Compensation Strategy
Foundations of a
Compensation Strategy
The most effective
compensation strategy is one that develops a clear link between the following

Job Description (i.e., work that an employee is expected to
Performance Evaluation (i.e., work that the employee has
External Salary Survey and Internal Salary Comparison (i.e., pay
provided to each employee).

Examine the
interrelationship between these three components by describing the purpose of
each component and how it affects the others. Then explain how all three
components would be used to determine the compensation for an employee. Your
examination should include a salary evaluation for a position you are familiar
with (Administrative Assistant, Human Resource Manager, Maintenance Worker,
etc). The salary evaluation should give results for each of the three
components and detail how pay is finally determined for this position based on
the three components.

Example of the salary evaluation portion of your analysis:

Purchasing Manager.

Primary functions from the Job Description: To plan, direct, and
coordinate the activities of buyers, purchasing officers, and related workers
involved in purchasing materials, products and services.

Organizational performance evaluation system:

Outstanding – 6% Increase
Exceeds expectations – 4% Increase
Meets expectations – 2% Increase
Does not meet expectations – No Increase

External Salary Survey: (salary survey, which you can typically
obtain online) Monthly salary range at $4,300 – $5,200.

Internal Salary Comparison: (the relationship of this position to
similar positions in your organization) Position is similar to Accounting
Manager, and should be paid within the same monthly salary range of $4,400 –

Submit your analysis in a two- to three-page paper formatted to proper APA 6th
Edition specifications. Include a minimum of two scholarly references to
support your analysis.

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