Compensation is a critical area of human resource (HR) management, and one that

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Compensation is a critical area of human resource (HR) management, and one that

Compensation is a critical area of human resource (HR) management, and one that can greatly affect employee behavior. To be effective, compensation must be perceived by employees as fair, competitive in the market, accurately based, motivating and easy to understand. HR professionals might create the pay structure for their organization, or they might work with an external compensation consultant. There are several steps to designing a pay structure: job analysis; job evaluation; pay survey analysis; pay policy development; and pay structure formation.
Your Assignment
Your assignment is to complete Tasks A-J in the attached case study to create a pay structure for the engineering consulting firm. You may use any additional resources recommended in the case study to complete the assignment.
designing-a-pay-structure-a-case-study-and-integrated-exercises-student-workbook.pdf Download designing-a-pay-structure-a-case-study-and-integrated-exercises-student-workbook.pdf
Please submit the final write up as a Word Document along with any additional supporting files (i.e. Excel files) used to complete the assignment.
Learning Objectives
In this case, students will learn to design a pay structure. To do so, you will:
• Write a job description, using the O*NET website.
• Use the point method to conduct a job evaluation.
• Analyze pay survey data for benchmark jobs.
• Create a market pay line using Excel.
• Establish a pay policy line based on a pay level strategy.
• Create pay grades.
• Establish pay ranges.

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