Project help--do section 3 only I have uploaded other sections

Section 4:

Instructions:

Creating a pay structure for an organization involves making a variety of important decisions that align with the companies goals both big and small, as well as making sure that it retains the right employees, weeds out the weak employees, and interests future employees to join the company. Step (1) in this extensive and complicated process is looking at your organizations competitive pay policy (Milkovich, 2017, p. 263). Businesses need to decide where they want to set themselves up in the market. What can they afford to offer their employees to retain the talent that they already have as well as attract new talent? This is in terms of pay and benefits packages. “Labor market competition, however, introduces a new role for performance pay: because it is a differentially attractive to more productive workers, it also serves as a device that firms use to attract or retain these types” (Benabou, 2016). Step (2) is making a clear purpose for the survey (Milkovich, 2017, p. 263). Businesses have a variety of reasons for performing a wage survey ranging from auditing to make sure they aren’t overpaying or unpaying their employees, as well as changing their pay strategy to attract a different type of employee, or even budget cuts to see if they can save money in the benefits and pay incentives that they are offering. Step (3) entails choosing competitors for the benchmark jobs you will be basing your survey off of (Milkovich, 2017, p. 263). This step is very important in the process, as you have to ensure that you find a company that aligns well with your business. The key to benchmarking is not replication of another companies plan but instead innovation (Singh, 2010). “Benchmarking encourages organizations to carry out self-analysis to find out the most efficient way to attain competitive position by monitoring the best practices of the industry. It is perceived as a continuous process of measuring products, services, and practices against the toughest competitors or those companies recognized as industry leaders” (Singh, 2010). This gives a business a baseline of what other companies are offering to their employees while also helping them decide how they will differentiate themselves from the competition. Step (4) is where you design the survey (Milkovich, 2017, p.263). When designing your survey you need to weigh many different factors such as how many employees should be involved, which jobs are included, as well as how many outside competitive businesses data needs to be a factor? (Milkovich, 2017, p. 270). Step (5) includes collecting the results from the survey and interpreting them, as well as constructing your market line (Milkovich, 2017, p.263). This step has become much easier, as now much of the survey information is collected through computers, making sorting it much more efficient (Milkovich, 2017 p.278). Technology also aids in the ability to create a market line that is easy to understand, and organized for everyone involved in using the results for decision making. A market line takes the data that is collected and put it into a visual graph so that human resource specialists can use it in an organized format. The final step is to balance top competitiveness with internal alignment (Milkovich, 2017, p. 263). This final step takes the benchmark jobs into account, as well as the internal data from the survey to help establish a new plan for a companies pay structure. 2 Timothy 2:15 leaves us with this, “Do your best to present yourself to God as one approved, a worker who does not need to be ashamed and who correctly handles the word of truth” (NIV). Surveying employees using benchmark jobs seeks the truth for businesses to be compensating their employees properly as well as giving them a competitive edge in the market to continually attract talent.

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Confidentiality statement:

Each employee’s salary is determined based on a wide variety of factors that each employee may or may not be aware of. Some of these factors include comparing wages and/or benefits with competitive companies that maintain employees with similar occupations or skills, in similar geographic locations, and that offer the same products and services as us as well as looking at our own companies skillsets via performance reviews, employees years of experience and company advantages (Milkovich, 2017,p.265). These factors are vital to ensuring that each employee’s salary is extensively looked at and researched to ensure accuracy, and why confidentiality is so important. “Once it is known what other organizations pay for each job, a pay level can be chosen that is a function of what other organizations pay and what role the job plays in executing the strategy of one’s own organization” (Milkovich, 2017, p.289). Maintaining the confidentiality of all employees wages is paramount to our company success. We can ensure that we spend a significant amount of time evaluating each position as well as each employees extensive education and value to our company to ensure that each employee is paid as fairly as possible. We are inspired by the verse Colossians 4:1 stating “Masters, provide your slaves with what is right and fair, because you know that you also have a Master in heaven” (NIV).

Because of our extensive fairness procedures and expections, we expect that all employees maintain confidentiality in regards to wages and expect that they only provide others with this information when required for financial needs. This forbids employees from sharing wages amongst each other, as well as others not employed by us.

As an employee signing this document, I acknowledge the details of it and agree to abide by the rules outlined as so. If I decide not to abide by written rules I am subject to correction action that may lead to termination.

Name (Print & Signature):

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