OL 620 Module 4 case study

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since Joan started the company, and now employs more than 150

customer service representatives (CSRs) and other support staff.

The company’s quick growth has led to several problems with its

compensation structure. Much of the company’s hiring has

occurred in response to a new contract, and pay was set based on

the current market rate for CSRs in order to attract the right talent.

For example, an early client was a small retail store that needed

fairly simple customer support. Four CSRs were hired and their pay

was set at just slightly above minimum wage. In comparison, a

more recent client required hiring 18 CSRs. The labor market was

competitive at the time, and the company hired these 18 new

employees at a pay rate well above what others at the company

were paid. Such variance has occurred often in the hiring process,

resulting in groups of CSRs at much different levels of pay for doing

substantially similar work.

Deborah has heard many complaints from the supervisors about

inequities in the pay of the CSRs. The supervisors are concerned

that the inequities may lead to turnover among some of the staff.

Deborah has examined the pay rates of the CSRs across the

organization and agrees with the supervisors that there are some

concerns. One particular concern is that the lowest paid group of

CSRs is primarily female, while the highest paid group includes all

male employees. By talking with the supervisors, Deborah has

learned that there are some CSRs with different levels of

responsibilities and skills, but they all hold the same job title.

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6: Building Internally Consistent Comp… AK

Table Of Contents

Contents Bookmarks Recent

Chapter 6 Introduction: Building Internally Consistent

Compensation Systems

6.1: Internal Consistency

6.2: Job Analysis

6.3: Job Evaluation

6.4: Job Evaluation Techniques

6.5: Internally Consistent Compensation Systems and

Competitive Strategy

Summary

Key Terms

Discussion Questions

CASE: Internal Consistency at Customers First

CRUNCH THE NUMBERS! Modifying a Job Evaluation

Worksheet

7: Building Market-Competitive Compensation Systems

8: Building Pay Structures that Recognize Employee