ESSAY : External Competitiveness

OL 325 Milestone Three Guidelines and RubricSection 2: External Competitiveness

Section 2

shifts your focus outside the company to compare pay rates of positions inside the firm with similar positions in the external market place. The shift to outside the company will move you away from the previous focus on e-sonic’s internal consistency to external competitiveness. Conducting an analysis of external market data will support your decisions about appropriate pay-policy mixes for job structures in the company. In section 2 of Milestone Three, you will be introduced to tools compensation professionals use to allocate total compensation within job structures. Total compensation includes base pay, benefits, and varied incentives used to attract and retain employees. During the simulation you will use some of these tools to develop pay policies for each e-sonic job structure. In order to conduct your external market survey you will use web-based salary sites developed by the US Bureau of Labor StatisticsandGlassdoor.com. These websites develop salary informationbased off of actual pay data from professionals working in specific jobs and potentially represent the most current pay for the job titlesat e-sonic. Follow the steps outlined below:

Section 2 Outline:

Executive Summary Findings1.Determine Appropriate Pay-Policy Levels for E-sonic Jobs2.External Market Reviewa)Research market competitiveness using the free salary websites listed above, which provide salary data by title and region. b)Research trends about cost of living adjustments in e-sonic locations. Apply some discussion around leading, lagging or matching the market to the salary data you found in your marketsalary research. Assume thatthe salary research you are using is similar to benchmark jobs. Also,discusswhetherjobs you researched would match the benchmark jobs or require more or less experience and talent than the benchmark job. c)Update salary data for inflation using CPI-U.3.ImplementSalary Survey Resultsa)Create pay grades and ranges by integrating external market data with internal pay grades. b)Evaluate and summarize decisions made for each job structure.The External Competitivenesssection is fully described in the MyManagementLab Building Strategic Compensation Systems casebook for faculty and students, linked in the course menu. Follow the explanations and outline to complete this milestone. Section 2: External Marketplaceis due at the end of Module Six

SAMPLE SOLUTION

External Competitiveness
Determining the Suitable Pay-Policy Mix for the Company’s Job Structures
Moving forward with establishing E-Sonic’s compensation plan, the firm’s pay ratios for different job structures will be key. Additionally, it is also critical for the company to establish at what point it wishes to establish its compensation. For instance, will it be above, below or in-line with the market standards. Additionally, it is also essential to consider which department drives the best results for the company. The company’s marketing department plays a significant role in driving the firm’s sales targets. Therefore, members of this department are expected to be competitive in executing their roles. The members of this department ought to be subjected to stretch goals as a way of ensuring that the baseline goal is achievable. Anyone who meets a given…