Shrm case: “designing a pay structure
Your case analysis should consist of:
Task A: Create a complete job description for the benefits manager position using
Task B: Calculate the job evaluation points for the Front Desk Receptionist and benefits
manager jobs. Provide a rationale for assigning specific degrees to the various jobs.
Task C: If there were any outliers (i.e., extreme data points) in the data, what would you
recommend doing with them? From this point forward, assume no extreme data points
exist in the dataset.
Task D: Conduct a simple regression in Excel to create a market pay line by entering the
job evaluation points (on the X axis) and the respective weighted average market base
pay (on the Y axis) for each benchmark job.
Task E: What is your R squared (variance explained)? Is it sufficient to proceed?
Task F: Calculate the predicted base pay for each benchmark job.
Task G: Because your company wants to lead in base pay by 3%, adjust the predicted
pay rates to determine the base pay rate you will offer for each benchmark job.
Task H: Create pay grades by combining any benchmark jobs that are substantially
comparable for pay purposes. Clearly label your pay grades and explain why you
combined any benchmark jobs to form a grade.
Task I: Use your answer to Task H to determine the pay range (i.e., minimum and
maximum) for each pay grade.
Task J: Given the pay structure you have generated, consider the following: Does this
pay structure make good business sense? Do you think it is consistent with the
organization’s business strategy? What are the implications of this pay structure for other
HR systems, such as retention and recruiting?
Your analysis of this case and your written submission should reflect an understanding of
the critical issues of the case, integrating the material covered in the text, and present
concise and well-reasoned justifications for the stance that you take. You are to complete
this case analysis using Excel in a spreadsheet analysis format.