Carter Cleaning Centers does not have a formal wage structure, rate ranges, or use compensable factors. Wage rates are based on those prevailing in the surrounding community and are tempered with an attempt of Jack Carter to maintain some semblance of equity between what workers with different responsibilities in the stores are paid.

Carter does not conduct formal surveys when determining what his company should pay. He peruses the want ads daily and conducts informal surveys among his friends in the local chapter of the laundry and cleaners trade association. While Jack has taken a seat-of-the-pants approach to paying employees, several basic pay policies have guided his salary schedule.

Although many of his colleagues adhere to a policy of paying minimum rates, Jack has always followed a policy of paying his employees about 10% above what he feels are the prevailing rates, a policy that he believes reduces turnover while fostering employee loyalty. More concern to Jennifer is her father s informal policy of paying men about 20% more than women for the same job. Her father explains that they are more robust and can work harder for longer hours, and besides, they all have families to support.

Apply the establishing pay rates steps in Carter Cleaning Centers and set up a formal salary structure of employee compensation.