OL 325 Milestone /External Competitiveness

Section 2: External Competitiveness

Section 2 shifts your focus outside of the firm to understand its relationship with the external marketplace. You will use market survey data to compare pay rates of
positions inside the firm with those in the marketplace to establish the foundations of market-competitive pay. The analysis of market data also leads you to the
determination of appropriate pay-policy mixes for each of its job structures. In this section, you are asked to use CompAnalysis software developed by Howard Weiss at
Temple University, which is also available in MyManagementLab.

In Section 2 of this simulation, you will shift your focus from concentrating on e-sonic’s internal consistency to its external competitiveness. First, you will be
introduced to the tools compensation professionals use to allocate total compensation most effectively within job structures. Many employees are unaware that their
total compensation consists of much more than just base pay. Compensation professionals allocate total pay (for example, base pay, benefits, and different types of
incentives) to motivate employees in different ways. You will use some of these tools to develop pay policy mixes for each e-sonic job structure. Next, you will
consider pay policy level decisions for each job structure.

You will then use CompAnalysis (the included software program) to conduct an external market survey. Specific instructions provided with the software program will
guide you through the steps involved in the compensation survey exercise. Finally, you will report survey findings, interpreting regression analysis results generated
by the software, and provide an explanation of major decisions reached.

Section 2 Outline:
Executive Summary Findings
1. Determine Appropriate Pay-Policy Mix
2. Pay-Policy Level Decisions
3. Compensation Survey
a) Choose competitors based upon industry, size, and union status.
b) Select benchmark jobs for each structure using benchmark job descriptions.
c) Reconcile differences using the benchmark job comparison sheet.
d) Update salary data for inflation using CPI-U.
4. Implementation of Salary Survey Results
a) Report and interpret results of regression analysis for each job.
b) Integrate external and internal structures by creating pay grades and ranges.
c) Evaluate and summarize decisions made for each job structure.

The External Competitiveness section is fully described in the MyManagementLab Building Strategic Compensation Systems casebook for faculty and students, linked in the
course menu. Follow the explanations and outline to complete this milestone. Section 2: External Marketplace is due at the end of Module Six.
Rubric
Requirements of submission: Each section of the final project must follow these formatting guidelines: 5–7 pages, double spacing, 12-point Times New Roman font, one-
inch margins, and discipline-appropriate citations.

Instructor feedback: Students can find their feedback in the Grade Center.

Critical Elements Exemplary Proficient Needs Improvement Not Evident Value
Section 2: External Competitiveness
Provides in-depth market competitiveness report with all of the elements of the outline provided in Section 2 of the Building Strategic Compensation Project
documentation
(45-50) Provides market competitiveness report with most of the elements of the outline provided in Section 2 of the Building Strategic Compensation Project
documentation
(40-44) Provides market competitiveness report with some of the elements of the outline provided in Section 2 of the Building Strategic Compensation Project
documentation
(35-39) Does not provide market competitiveness report with elements of the outline provided in Section 2 of the Building Strategic Compensation Project documentation
(0-34) 50
Integration and Application All of the course concepts are correctly applied
(18-20) Most of the course concepts are correctly applied
(16-17) Some of the course concepts are correctly applied
(14-15) Does not correctly apply any of the course concepts
(0-13) 20
Critical Thinking Draws insightful conclusions that are thoroughly defended with evidence and examples
(18-20) Draws informed conclusions that are justified with evidence

(16-17) Draws logical conclusions, but does not defend with evidence

(14-15) Does not draw logical conclusions

(0-13) 20
Writing
(Mechanics/ Citations) No errors related to organization, grammar and style, and APA citations
(9-10) Minor errors related to organization, grammar and style, and APA citations
(8) Some errors related to organization, grammar and style, and APA citations
(7) Major errors related to organization, grammar and style, and APA citations
(0-6) 10
Total
Comments: 100%
CompAnalysis – Software to Support:
Building Strategic Compensation Systems
Version 2