Design a pay structure for CapraTek that is commensurate with job classifications. The deliverable is a 3-4 page recommendation memo to upper management.
Introduction
The challenge in this assessment is to focus on creating a strategic pay structure that should include considering the number of pay structures, market pay line, defined pay grades, and pay ranges (Martocchio, pp. 172–179). Additionally, analyze merit pay systems, sales-incentive plans, and person-focused programs. Keep in mind the alignment of job classifications and pay structure.
Reference
Martocchio, J. J. (2020). Strategic compensation: A human resource management approach (10th ed.). Boston, MA: Pearson.
Preparation
It is critical to know that a successful compensation strategy will gain more acceptance by senior management when HRM can demonstrate a link between the rewards strategy and the attainment of the organization’s strategic goals.
For your next HR Challenge, your manager has asked you to design a pay structure for CapraTek that is commensurate with job classifications.
CapraTek
CapraTek is a virtual technology company. The assessment is based on the CapraTek scenario.
CapraTek: Strategic Pay Structures.
Get the perspective of CapraTek employees and determine the elements needed for a strategic pay structure.
Assessment Instructions
Building on your work in the previous assessment’s HR Challenge: Internally Consistent and Externally Competitive, design a pay structure for CapraTek that is commensurate with job classifications. The deliverable is a recommendation memo to upper management.
To develop the recommendation memo to upper management, do the following:
Create a strategic pay structure for CapraTek using Martocchio’s five-step system, including the number of pay structures, market pay line, defined pay grades, and pay ranges (Martocchio, pp. 172–179).
Analyze merit-pay systems and their applicability to CapraTek.
Analyze sales-incentive compensation plans and their applicability to CapraTek.
Analyze person-focused programs and their applicability to CapraTek.
Evaluate the alignment of job classifications to this pay structure.