“Designing a Pay Structure.”

Prepare the SHRM case analysis on “Designing a Pay Structure,” which
consists of your completion of Tasks A–J that simulate the creation of a
compensation system for an organization in meeting its goals and supporting its
mission. In your analysis, respond to the following tasks found in the case study by
using Excel.
Your case analysis should consist of:
• Task A: Create a complete job description for the benefits manager position
using O*NET.
• Task B: Calculate the job evaluation points for the administrative assistant,
payroll assistant, operational analyst, and benefits manager jobs. Provide a
rationale for assigning specific degrees to the various jobs.
• Task C: If there were any outliers (i.e., extreme data points) in the data, what
would you recommend doing with them? From this point forward, assume no
extreme data points exist in the dataset.
• Task D: Conduct a simple regression in Excel to create a market pay line by
entering the job evaluation points (on the X axis) and the respective weighted
average market base pay (on the Y axis) for each benchmark job.
• Task E: What is your R squared (variance explained)? Is it sufficient to
proceed?
• Task F: Calculate the predicted base pay for each benchmark job.
• Task G: Because your company wants to lead in base pay by 3%, adjust the
predicted pay rates to determine the base pay rate you will offer for each
benchmark job.
• Task H: Create pay grades by combining any benchmark jobs that are
substantially comparable for pay purposes. Clearly label your pay grades and
explain why you combined any benchmark jobs to form a grade.
• Task I: Use your answer to Task H to determine the pay range (i.e., minimum
and maximum) for each pay grade.
• Task J: Given the pay structure you have generated, consider the following:
Does this pay structure make good business sense? Do you think it is
consistent with the organization’s business strategy? What are the implications
of this pay structure for other HR systems, such as retention and recruiting?
• Your analysis of this case and your written submission should reflect an
understanding of the critical issues of the case, integrating the material
covered in the text, and present concise and well-reasoned justifications for the
stance that you take. You are to complete this case analysis using Excel in a
spreadsheet analysis format.
Assessment Checklist:
• Create job descriptions for multiple jobs.
• Conduct a regression analysis that results in a market pay line that supports
the validity of the pay ranges in the case study.
• Calculate the predicted base pay for each benchmark job.
• Create pay grades by combining any benchmark jobs that are substantially
comparable for pay purposes.