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Compensation Case Study

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Go to www.salary.com and select at least four jobs to analyze. Select at least three cities for each job. You can use the same three cities for all four jobs. Answer the following and show the salary data:
1. Which jobs are paid more or less? Is this what you would have expected? Why/why not? What factors could explain the differences in the salaries?
2. Do the jobs have different bonuses as a percentage of their base salaries? What could explain these differences?
3. Do the data include the value of stock options? What are the implications?
4. Read the job descriptions. Are they accurate descriptions for jobs that you would be applying for? Why/why not? Are there jobs for which you cannot find an appropriate match? Why do you think this is the case?
5. How could you use this information while negotiating your salary in your job after graduation? What data would you provide to support your "asking price"? What factors will influence whether or not you get what you ask for?
6. What is the relevant labor market for these jobs? How big are the differences between salaries in different locations?
7. For each job, compare the median salary to the low and high averages. How much variation exists? What factors might explain this variation in pay rates for the same job?
8. Look for a description of how these salary data are developed. Do you think it provides enough information? Why/why not? Discuss some of the factors that might impair the accuracy of these data. What are the implications of using inaccurate salary data for individuals or companies?
9. With this information available for free, why would you bother with consultant surveys?
10. If you were a manager, how would you justify paying one of your employees either higher or lower than the results shown on the website?

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I will analyze the following jobs: Operations Manager, Logistics Manager, Distribution Manager and Distribution Center Manager. The three cities for each job will be Dallas, Texas, Pittsburgh, Pennsylvania and St. Louis, Missouri.

1.) The median salary for an Operations Manager is $87,242. The median salary for a Logistics Manager is $92,993. The median salary for a Distribution Manager is $80,852. The median salary for a Distribution Center Manager is $88,488. The jobs are ranked by salary in the following order: 1st Logistics Manager, 2nd Distribution Center Manager, 3rd Operations Manager and 4th Distribution Manager. Yes, I expected the rankings based on the person within the organization that is the job's supervisor (Logistics Manager Reports to top management) and span of control (Distribution Center Manager manages the entire activities within the distribution center). Also, the level of education is factor in salary. Operations Manager, Logistics Manager and Distribution Center Manager requires a bachelor's degree; whereas, the Distribution Manager requires an associate's degree.

2.) Yes, all of the jobs have a bonus as a percentage of the salary. The bonus percentage is as follows: Operations Manager has a bonus of 4.1%, Logistics Manager has a bonus of 4.7%, Distribution Manager has a bonus of 4.2% and Distribution Center Manager has a bonus of 6.6%. The differences in the bonus could be explained by the span of control and who is the manager's supervisor. The Distribution Center Manager manages the entire activities within the distribution center. The Logistics Manager ...

Solution Summary

The compensation case study for www.salary.com is examined. Stock options are determined.

See Also This Related BrainMass Solution

Job Offer Case Study Analysis

Based on the case study below, I am looking for a case study (3 page minimum) that not only answers the three questions below, but also loosely follows this outline:

•Identify both the key issues and the underlying issues. In identifying the issues, you should be able to connect them to the HR principles which apply to this situation.
•Discuss the facts which affect these issues. The case may have too much information. In your discussion, you should filter the information and discuss those facts which are pertinent to the issues identified above.
•Discuss your tentative solution to the problem and how you would implement your solution. What actions would you propose to correct the situation, based on the knowledge you have gained in this course?
•Discuss follow-up and contingency plans. How will the organization know that your proposed solution is working? What should they do if it does not work?

Within the case study - be sure to answer the following:

Arlan is seeking input from you on how to proceed. Specifically, he want you to:
1) Recommend whether Jane should receive a best-shot, competitive, or low ball offer and why.
2) Recommend other inducements beyond salary, health insurance, vacation, and schedule that might be addressed in the job offer, and why?
3) Draft a proposed job offer letter to Jane, incorporating your recommendations from items 1 and 2 above, as well as other desired features that should be part of the job offer letter.

Clean Car Care (3Cs) is located within a western city of 175,000 people. The company owns and operates four full-service car washes in the city. The owner of 3Cs, Arlan Autospritz, has strategically cornered the car wash market, with his only competition being two coin-operated car washes on the outskirts of the city. The unemployment rate in the city and surrounding area is 3.8%, and it is expected to go somewhat lower.

Arlan has staffed 3Cs by hiring locally and paying wage premiums (above market wages) to induce people to accept job offers and to remain with 3Cs. Hiring occurs at the entry level only, for the job of car washer. If they remain with 3Cs, washers have the opportunity to progress through the ranks, going from car washer to shift lead person to assistant manager to manager of one of the four car wash facilities. Until recently, this staffing system worked well for Arlan. He was able to hire high-quality people, and a combination of continued wage premiums and promotion opportunities meant he had relatively little turnover (under 30% annually). Every manager at 3Cs, past or present, had come up through the ranks. But that is now changing with the sustained low unemployment and the new hires, who just naturally seem more turnover prone. The internal promotion pipeline is thus drying up, since few new hires are staying with 3Cs long enough to begin climbing up the ladder.
Arlan has a vacancy for the job of manager at the north-side facility. Unfortunately, he does not think any of his assistant managers are qualified for the job, and has reluctantly concluded that he has to fill the job externally.
A vigorous three-county recruitment campaign netted Arlan a total of five applicants. Initial assessments resulted in four of those being candidates, and two candidates became finalists. Jane Roberts is the number-one finalist, and the one to whom Arlan has decided to extend the offer. Jane is excited about the job and told Arlan that she will accept an offer if the terms are right. Arlan is quite certain Jane will get a counteroffer from her company. Jane has excellent supervisory experience in fast-food stores and a light manufacturing plant. She is willing to relocate, a move of about 45 miles. She will not be able to start for 45 days, due to preparing for the move and the need to give adequate notice to her present employer. As a single parent, Jane wants to avoid work on either Saturday of Sunday each week. The number-two finalist is Betts Cook. Though she lacks the supervisory experience that Jane has, Arlan views her as superior to Jane in customer service skills. Jane told Arlan she needs to know quickly if she is going to get the offer, since she is in line for a promotion at her current company and she wants to begin at 3Cs before being offered and accepting the promotion.
Arlan is mulling over what kind of offer to make Jane. His three managers make between $28,000 --$35,000, with annual raises based on a merit review conducted by Arlan. The managers receive one week of vacation the first year, two weeks of vacation for the next four years, and three weeks of vacation after that. They also receive health insurance (with a 20% employee co-pay on the premium.)The managers work 5 days each, with work on both Saturday and Sunday frequently during peak times. Jane currently makes $31,500, receives health insurance with no employee co-pay and has one week of vacation (she is due to receive two weeks shortly). She works Monday to Friday, with occasional work on the weekends. Betts earns $34,500, receives fully-paid health insurance and has one week of vacation (will be eligible for 2 weeks in one year). Weekend work - if not constant - is acceptable to her.

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