The following in an analysis of the overhaul of the pay structure for the non-union jobs at HealthRx (the
CEO position is also excluded). Our method for doing so follows the “Pay Structure” outline. Job evaluation
points of relevant benchmark jobs at HealthRx are indicated in the column labeled (Points (X) on the attached
Excel document. Market rates, from a pay survey analysis conducted by HealthRx, for jobs not included in case
2, are indicated in the next column. Rates from case 2 to complete the column.
Job evaluation points were used as X data; survey rates were used as Y data. A regression analysis to
Determine a market pay line, or “pay policy line” (PPL) is also provided through the attached Excel document.
This PPL is a mathematical way to translate our points into dollars, based on the external labor market.
Using the pay policy line equation provides calculated grade midpoints (in dollars). Calculated
midpoints for each grade are provided as well by using the established middle point of each point range in the PPL
equation, by substituting this value for X.
Grade maximums and minimums are also provided by calculating pay ranges around the midpoints.
Typically, the size of a pay range is based on some judgment about how the ranges support promotions, career
paths, and other organization systems. Commonly, top management positions have ranges of 60 to 120 percent;
entry level to m...
$15000/4=$3750 for each period. --- $3750 is compensation cost of OMS recognize in 2012 and in 2013.
Flinker S., Ward D., Calabrese T., (2013). Accounting Fundamentals for Health Care Management, 2nd edition.
The paper will discuss minicases on ‘The White-Collar Union Organizer’ and ‘The Frustrated Labor Historians’ by Arthur A. Sloane and Fred Witney (2010), to understand the issues unions undergo in the marketplace. There is no predetermined statistical number reported of union memberships in this country. However, “the United Bureau of Labor Statistics (BLS) excludes almost 2 million U.S wages and salary employees, over half of whom are employed in the public sector, who are represented at their workplaces by a union but are not union members. Not being required to join a union as a condition of continued employment, these employees have for a variety of reasons chosen not to do so. Nor do the BLS estimates include union members who are currently unemployed” (Sloane & Witney, 2010, p.5). Given this important information, the examination of these minicases will provide answers to the problems unions face in organizational settings.
As companies look to expand operations and hire new employees, many economic and environmental factors are taken into consideration. The cost of labor is one of the primary concerns as labor generally constitutes a large part of company budgets. The organization of labor by unions further increases this concern. The wages of unionized workers are significantly higher than the wages of nonunion workers in almost every industry (Fossum, 2012). Higher wages generally result in reduced company profits, lower share prices, and reduced shareholder returns (Fossum, 2012). Unionization also reduces the employer’s flexibility with regards to hiring, transferring, or promoting employees (Fossum, 2012). Productivity may be negatively impacted by unionization because merit is often eliminated as a criterion for wage increases or promotions (Fossum, 2012). As a result of these negative impacts, employers are motivated to oppose unionization.
Compensation is made of a base salary (paid by the hour, work or the year; excluding overtime or bonuses), variable pay (bonuses, profit sharing/stock options which work hand and hand with the performance of the company), and benefits (to include health insurance/savings plans – 401(k), or tuition reimbursement). The traditional way of determining base pay for jobs was to compare jobs in the same industry. Now industry and market, no long work by themselves, the current thinking is more person-based that considers knowledge, skills, and competencies of the work. This, however, is best suited for high-performing environments that remain flexible in their deployment of human capital.
Because each of these different positions requires a different level of education and experience, it is assumed that these positions will also come with different compensation options. Base pay will differ between the three levels of employees, beginning with the managers receiving the highest level of base pay (due to their higher level of education/experience) and salespeople will receive the lowest level of base pay. The physiotherapist and the kinesiologist will receive a base pay somewhere in between.
less than the original numbers because the outliers are removed. Therefore, there is less spread in the data. The interquartile range of the total cost per year decreased to 20045 while the interquartile range of the salary yardstick became 11900 after the removal of outliers. This means that the Q1 and Q3 value are closer to one another than before. This is attributed to the removal of the outliers which reduces the spread.
"Table A-15. Alternative Measures of Labor Underutilization." U.S. Bureau of Labor Statistics. U.S. Bureau of Labor Statistics, n.d. Web. 04 July
Although FastCat has diverse positions throughout the company, we have created one pay structure. The company categorized employees into four categories. These four categories have been defined as management, technical, support, and administrative. By utilizing a single pay structure, we want to create a fair system that is company-wide and is competitive across the market.
Employee health benefit plans flourished in the 1940’s and 1950’s. Unions bargained for better benefits, which included tax-free, employer-paid health insurance. When war hit between 1939 and 1945, government froze wages which led to an increase of group health care. Since employers were unable to attract employees with higher wages, employers decided to improve their benefits package by adding health care coverage. Gove...
Jones, F.F., Scarpello, V., & Bergmann, T. (1999). Pay procedures - What makes them fair? Journal of Occupational and Organizational Psychology, 72(2), 129-145.
Frydman, C., & Saks, R. E. (2010). Executive Compensation: A New View from a Long-Term Perspective, 1936-2005. Review Of Financial Studies, 23(5), 2099-2138.
Wilkerson, J. L. (1995). Merit pay-performance reviews: They just don't work! Management Accounting, 76(12), 40. Retrieved from http://search.proquest.com/docview/229841643?accountid=32521
There are different aims for job evaluation schemes. First, although there are different job evaluation schemes that can be chosen such as analytical or non-analytical, a job evaluation scheme should be analytical so that sexual discrimination will not be an issue. In its Good Practice Guide on Job Evaluation Schemes Free of Sex Bias the Equal Opportunities Commission (EOC) states that: “Non-discriminatory job evaluation should lead to a payment system which is transparent and within which work of equal value receives equal pay regardless of sex.” Secondly, a job evaluation scheme should be objective. This suggests that the value of the employee’s pay should be based on work performed, and not the job title. Thirdly, the organization that is doing the job evaluation scheme should compare themselves to other competitors in the industry to be sure that their employees are being treated and compensated equally.
Attracting and retaining the most talented employees is essential for long-term organizational success. An important component to attracting and retaining such employees is the design and implementation of an effective compensation and benefit system. Assuming the role of a highly regarded human resource consultant hired to review, analyze, and revise the compensation and benefit system utilized by my city’s largest employer, Holland Enterprises, this paper presents a revised compensation and benefit strategy that suits the firm. This proposal describes how an effective compensation and benefit system could contribute to organizational effectiveness in the firm, the principle components of the revised compensation and benefit system for the