Week $4$: Preliminary Report for Compensation Plan Proposal

PRELIM REPORT $-$ COMPENSATION PROPOSAL

Welcome to Columbus Custom Carpentry!

You are the newly hired HR Manager for Columbus Custom Carpentry $($CCC$).$ Our president, Anthony Cooney, wants your first priority to be a review of the compensation

structure for the company, focusing on the Warehouse and Manufacturing Departments. This requires that you meet with several key employees, identify specific problems,

and propose specific changes to the compensation structure for the jobs in each department, that will best solve those problems. You will be provided with:

Employee Handbook

Columbus Custom Carpentry Case Study : Access to key employees who will discuss what they think the problems are.

Columbus Custom Carpentry Employee Spreadsheet that includes: Current pay rates,Current job descriptions, turnover rates for the company, departments, and jobs,

and other relevant employee information

Job Value Worksheet

Current job descriptions

Access to the company's HRIS system containing important employee information, including current pay

Access to key employees who will discuss what they think the problems are

Point System Job Evaluation: After reviewing the relevant information, you will need to conduct a job valuation for each of the jobs in these departments to determine

whether CCC has internal compensation consistency. $($Review Chapter $6$ on how a point system job valuation works.$)$ Using the template provided, score each job using the

point system. Evaluate each job based on the information you have been given, including job descriptions and facts about the jobs discussed in the case study. $($HINT: Some

job descriptions may no longer be consistent with what the job currently does and$/$or may be in the future.$)$

Memo: Next, you will prepare a preliminary report for the president explaining your findings. Using the template provided your report should :

a$.$ Identify key issues to be addressed through modification of the current compensation structure. While CCC has a variety of issues $-$ this is a Compensation class, so

focus on issues that can be improved by making changes to the compensation structure.

b$.$ Summarize your job value analysis $-$ create a chart IN your paper that shows the total value points for each job. You want to show the CEO which jobs are similar and

therefore should be paid similarly. $($Attach your value sheets at the end of your memo for reference$)$

c$.$ Outline the steps to gather and consider relevant external data. See Chapter $7$

d$.$ Give a preliminary outline of the structure you intend to pursue. At this point, you should be looking to create a compensation structure that consists of pay grades with

starting, midpoint and maximum pay for each pay grade. You do NOT have to select actual pay rates for each pay grade, yet. For this memo, simply identify how

many pay grades you will use, and which jobs should be in each pay grade. Create a chart that shows pay grades, the jobs in each grade and explain how this structure

should improve the issues you discuss above.

You should explain that you will be looking at pay rates that reflect $1$ of the $3$ Pay Level Policies $($See Chapter $7).$ You should explain the $3$ Pay Level Policies you have

considered and support, with sound reasoning, why you prefer one of them for use by CCC$.$ Your selection should be consistent with Columbus Carpentry's competitive

strategy and ability to pay. $($See CCC Case Study$)$