Estimating Market Competitive Salaries Using Benchmark Jobs

You have been tasked with integrating your internal job hierarchy with the external data you just received from salary surveys. Here are the jobs you have within your firm:

Jobs	Points	Market Survey Data
Administrative Assistant	150	$35,000
HR assistant	160
Bookkeeper	185	$38,000
Receptionist	125	$25,000
IT service manager	300	$85,000
Project manager	455
Director of finance	600	$140,000

The HR assistant and project manager positions are unique in your firm so you have decided that the external data for these jobs will not be comparable. Using the data available, what would be an appropriate amount to pay the HR assistant and the project manager?

Answer the question with no calculations, and just eyeballing the data.

Answer the same question a second time. This time, please fit a market pay line using regression analysis. You can use Excel to develop a market pay equation as outlined in the slides and weekly video. There are also online calculators that help fit a regression line and SPSS can always do the job. You need to include your regression output with your answer (a screenshot inserted into your answer would be great).

How would you use the market pay line if you wanted to lead the market for the project manager position, but lag the market for the HR assistant position? What could be the rationale for wanting to lead the market for one position while lagging for the other position?

Assume that the number you calculate for the HR assistant is the midpoint for the grade level for this position. Using a 40% spread, what would be the minimum and maximum values of the pay grade for this job?

Please show your work in all your answers.