Pay Structures and Internal Alignment Essay

Words: 1595
Pages: 7


Martin Straight Compressors (MSC) is a manufacturing company located out of Toledo, Ohio. Martin Straight Compressors employ 4600 people worldwide. MCS’s Chatham location is a small Canadian company that focuses on manufacturing compressors for heavy industries. Chatham employees approximately 70 salaried and 50 hourly employees. Beginning in 1999, Martin Straight Compressors Chatham had begun facing numerous compensation issues and conflicts.

Some of the issues included:

Having 7 authorized but unfilled middle-level management positions
Manager-employee relationships broken
Documentation not up-to-date with objectives, processes, progress, performance plans
Hourly staff don’t respect the owners
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While MSC slowly makes changes to their compensation system, the above 3 points will ensure employees adapt with the company. If employees continue to voluntarily resign, MSC will lose a great deal of knowledge and assets, which will make the change even more difficult. It’s important to keep valued employees so they are able to pass on their knowledge to new employees along the way.

Competitive Advantage

Martin Straight Compressors currently does not have a competitive advantage within the marketplace. Although salaries and wages are at par with external competitors, other factors hinder MSC: employees are expected to increase their responsibilities and workload due to the number of unfilled positions, without getting extrinsic compensation for it. Also, merit raises are mostly given to salaried, non-union staff. This discourages front-line workers because there is no incentive. Performance evaluations should be taken place on an annual basis to ensure employees are aware of their objectives and areas for improvement.

A major problem I see with MSC is that employees either get merit raises, or they don’t. Every company should want their employees to succeed, so, in turn, the organization succeeds. I advise MSC to instill a mentoring/coaching program to guide their employees to achieve the best they can. By telling, teaching, and showing employees how to