In Phase I we looked at the descriptions of sample jobs at FastCat and proposed a structure for the jobs based on the concepts of internal equity and organizational objectives of innovative product design, improved marketing and cost competitiveness. Based on the content and value of the job descriptions available we had created a tailored and hierarchical structure, which supported the organization strategy, work flow and motivates behaviour towards organization’s objectives.
In Phase II we ensured external competitiveness by analyzing the external market survey data on total compensation and pricing FastCat’s structure in accordance with it. We mapped FastCat’s jobs with …show more content…
Here, the following options were considered:
Boost their salaries
Boost their salaries with an increase in JE points and/or a promotion in his Grades
In both the options, pay parity would be ensured. However, employee costs might go up.
Cut salaries of people around them: This might be lead to high attrition.
2. Red Circles: Some jobs were also paid higher than the ranges and the specified compa ratios. The following options were considered:
Adjust the base wage: This can be done by decreasing the base wage, accompanied by a corresponding promotion in his Grade.
Move him to another job with a higher pay: Here, the job descriptions would be enlarged, and the higher base salaries would be retained.
Thus we looked at both internal equity (Grades and JE points) and External Competition (Compa Ratios) to adjust/ accept the initial base salaries.
Objectives and Rationale:
A merit pay clearly communicates to the employees the belief and trust in the employee that is shown by the organization. The utility of merit pay is to ensure that performance is truly rewarded as it is sizeable and contingent on the base pay. In addition, a transparent performance appraisal system is required with clearly defined metrics aligned to the organization’s strategy that will ensure that people understand the direction in which they must