ABC Inc. is food packaging company operating in Brampton, ON. It employs about 500 employees in 30 job titles. Food packaging is very completive market and ABC competes with several local and provincial companies. Using point method, the company has just finished their job evaluation of all 30 jobs. They found that the lowest job evaluation point among all their jobs is 250 and the maximum is 1000.

Susan, the HR manager (who is not very well trained in HR) of ABC Inc. contacted your group for help and advice. She wants you to do some calculation on the following and seek your advice.

ABC Inc. usually follows match the market policy for their pay level. However, to minimize recent increase in employee turnover, Susan wants to follow lead the market policy by 7%.

1. Based on the job evaluation points and market survey data, Susan has calculated their market pay regression line which is y = 13,000+62x. Now, you are to use this equation to fill in the following table by reflecting 7% increase in their pay policy line. (3 marks)

Pay Grade	Job Evaluation Points	Range Minimum	Range Midpoint	Range Maximum	Percent Above/Below Midpoint
1	250-299				15%
2	300-449				10%
3	450-599				20%
4	600-799				25%
5	800-1000				10%

1. Now, evaluate the above table. Does the above pay structure look reasonable to you? Provide your comments on the construction of pay grades and pay ranges as shown on the above table. (4 marks)

1. What suggestions you have for Susan to revise the above structure (if any). Provide reasons for each of your suggestion. (4 marks)

1. Do you agree with the idea of leading the market by 7% in their pay level. Why or why not? What alternative suggestions you can make to Susan? (4 marks)