Reviewing a salary structure

Overview

Write an analysis of the advantages and disadvantages of broadbanding as a compensation plan, and take a position on whether you think broadbanding can be successfully competitive in your current or previous work environment.

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

· Competency 2: Evaluate the components and implementation of base-pay programs. 

. Analyze advantages of broadbanding as a salary structure in a compensation plan.

. Analyze disadvantages of broadbanding as a salary structure in a compensation plan.

. Explain whether or not broadbanding can be successfully competitive in a work environment.

Context

It is necessary to address the competitive position of a pay policy. As an HR professional, it is important to understand how data is gathered and how to interpret the results. It is also important to keep a broad viewpoint. What does it mean to be competitive and pay a salary that is not only internally equitable but is also externally effective in attracting and retaining the appropriate labor force for your business? It is important that HR professionals consider all the issues that go into that decision-making process.

Questions to consider

To deepen your understanding, you are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of the business community.

· Web sources, consultants, word of mouth, and formal surveys are all sources of information used to determine competitive position in compensation. We have all heard the phrase, "I am underpaid." And, many of us have heard the response, "If you can get it elsewhere, go for it." What market data is most relevant to determine a competitive position? What is one source on which you would rely for competitive market data? Why you would choose that source?

· How you would benchmark your current or previous job? Consider what job would be a good benchmark to compare to your current or previous position.

Suggested Resources

The following optional resources are provided to support you in completing the assessment or to provide a helpful context. For additional resources, refer to the Research Resources and Supplemental Resources in the left navigation menu of your courseroom.

Library Resources

The following e-books or articles from the Capella University Library are linked directly in this course:

· Giancola, F. L. (2009).  A framework for understanding new concepts in compensation management . Benefits & Compensation Digest, 46(9), 1–16.

Course Library Guide

A Capella University library guide has been created specifically for your use in this course. You are encouraged to refer to the resources in the  BUS-FP4043 – Compensation and Benefits Management Library Guide  to help direct your research.

Internet Resources

Access the following resources by clicking the links provided. Please note that URLs change frequently. Permissions for the following links have been either granted or deemed appropriate for educational use at the time of course publication.

· U.S. Office of Personnel Management. (n.d.).  Federal classification and job grading systems . Retrieved from http://www.opm.gov/fedclass/html/gsclass.asp

· U.S. Office of Personnel Management (2011).  Salary table 2011-GS . Retrieved from http://www.opm.gov/oca/11tables/html/gs.asp 

. This Web site provides an example of a salary structure in the public sector. Step 1 is the minimum and Step 10 is the maximum in each salary grade.

· Commonwealth of Virginia Department of Human Resource Management. (n.d.).  Employee compensation . Retrieved from http://www.dhrm.virginia.gov 

. This Web site provides an example of a salary structure in the public sector.

Bookstore Resources

The resources listed below are relevant to the topics and assessments in this course and are not required. Unless noted otherwise, these materials are available for purchase from the  Capella University Bookstore . When searching the bookstore, be sure to look for the Course ID with the specific –FP (FlexPath) course designation.

· Newman, J. M., Gerhart, B., & Milkovich, G. (2017). Compensation (12th ed.). New York, NY: McGraw-Hill.

Assignment Instruction

Often a salary structure has ranges—minimum, midpoint, and maximum. Frequently, a market position is drawn from the range midpoint. Another option becoming popular is broadbanding. Each method has advantages and disadvantages. You may wish to look at the salary structure and occupational families presented in the U.S. Office of Personnel Management Salary Table 2011-GS, referenced in the Resources. Notice how broad the bands are for individual jobs.

Complete the following:

· Analyze the advantages and disadvantages of broadbanding as a compensation plan.

· Conclude your essay by explaining your position on whether you think broadbanding can be successfully competitive in your current or previous work environment, and provide supporting reasons for your position. How might broadbanding help with being successfully competitive compared to alternative salary structure ranges that might be used?

Be sure to use proper APA (6th edition) style and formatting.