BSBHRM505 Manage remuneration and employee benefits

(A remuneration and benefits strategy)

Submission details

The Assessment Task is due on the date specified by your assessor. Any variations to this arrangement must be approved in writing by your assessor.

Submit this document with any required evidence attached. See specifications below for details.

Performance objective

Demonstrate the skills and abilities involved in documenting and gaining support for a remuneration and benefit strategy.

Assessment description

Document remuneration and benefits strategy based on one of the options developed for Assessment Task 1 and complete a market analysis activity.

Procedure

Part A – Remuneration strategy

1. Select one of the remuneration and benefit strategy options developed for Assessment Task 1.

2. Prepare a written presentation, ensuring the following points are covered:

a. How will the remuneration and benefits strategy help the organisation achieve its goals?

b. What will the financial impacts be to the organisation?

c. Are there any legal or taxation factors involved?

d. Ensure that organisation is positioned as an employer of choice and regarded as a desirable workplace.

e. Ensure that the strategy adheres to relevant legislation, for example, equal employment opportunity, diversity and anti-discrimination legislation.

3. Document the remuneration strategy under the following headings:

a. Remuneration Policy:

i. pay structure

ii. types of remuneration

iii. market competitiveness.

b. Performance Management:

i. how the strategy links to performance management.

c. Performance rewards:

i. what reward methods you would include.

4. Include a summary of the research you have conducted into current practice, recent developments and legislative parameters.

5. Document the approach you would take to obtain agreement on your strategy including;

a. who is required to agree

b. how agreement will be obtained (e.g. presentation or strategy paper)

c. how agreements will recorded (e.g. sign-off sheets).

Part B – Analyse market conditions

1. Complete all elements of the ‘Salary Review’ worksheet.

2. Include a graph/chart formatted using Word or Excel.

Specifications

There are two parts to this Assessment Task.

Part A – Remuneration strategy

You must provide:

· a written report using Microsoft Word, Excel, and PowerPoint.

Your assessor will be looking for:

· a report that is presented in a logical and sequential manner, such as:

· introduction/background

· details of the proposed strategy

· how the remuneration strategy is linked to the organisation’s strategic and operational plans

· how the strategy addresses the needs of the different employee populations

· how the strategy ensures that those employees who are covered by an award receive, at the least, minimum entitlements

· how the strategy aims to position the organisation as an employer of choice and regarded as a desirable workplace

· details of how the strategy incorporates information gathered from market rate surveys

· advantages and risks of implementing the strategy.

· a report supported by appropriate and professionally prepared materials as:

· handouts

· PowerPoint presentation

· graphs and charts

· copies of documents referenced.

· recommendations made throughout the argument are supported, and research results and demonstration of the analysis undertaken to develop the strategy.

Part B – Analyse market conditions

You must provide:

· the completed worksheet

· a graph/chart formatted using Word or Excel.

Your assessor will be looking for:

· market data applied correctly

· salary recommendations are in line with market data

· salary recommendations reflect employee performance levels

· reasons for the selections provided

· at least two sources of market data on salary ranges identified

· explanations of how the remuneration strategy supports the operational goal

· graph or chart professionally presented with the following information shown:

· employee names

· current salaries

· recommended salaries

· any increases or decreases shown in dollar and percentage terms.

Part B – Analyse market conditions

There are five buyers employed at Exclusive Foods. When developing your remuneration strategy, you researched the following information relating to remuneration market rates for buyers in the food retail industry.

Salary survey market data that you have collected indicates the following:

Retail Buyers’ salary range:

Current situation

· Currently at Exclusive Foods, the remuneration strategy for retail buyers has been to pay at the 25th percentile.

· Feedback from the buyers is that they are unhappy with their base salaries and feel they are underpaid in relation to other retail buyers.

· Bonus incentives have been minimum or unpaid in the past and projections are that Exclusive Foods will not exceed budget profit by more than 5% in the next financial year and therefore bonuses will be very small.

· There are some job opportunities for experienced buyers in the market place but not a great deal.

· Turnover for buyers at Exclusive Foods is 20%–48% higher than the industry average.

· You have recommended to management that you would like to position the buyers remuneration towards the market medium (50th percentile) as they currently sit at the 25th percentile.

· The senior management team has asked that you put your recommendations in writing and provide them with a graph showing current costs and proposed increases for increases you are recommending. Please show the increases in both dollar and percentage amounts.

Instructions

Review the information provided. Using a merit-based pay methodology and the information you have researched to complete the attached worksheet, make salary recommendations for Exclusive Foods.

Your financials graph/chart should be prepared using Word or Excel and attached or forwarded to the assessor with the completed worksheet.

Salary review worksheet

Performance review ratings

Document the reasons for your recommendations.

Calculating salary packages

Calculate the new salary package for Thomas Bradley as a result of his salary increase.

What item within Thomas Bradley’s salary package would be subject to Fringe Benefits Tax, and why?

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