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SU HR Manager Compensation Discussion

SU HR Manager Compensation Discussion

Description

Question 1

Put yourself in the position of an HR manager of a large research and development facility. The CEO is concerned about rising labor costs. The most recent employee opinion survey showed employee satisfaction with their compensation as low.

The CEO is considering revamping the incentive pay program. He’s not sure whether a person-focused incentive plan or a team-based incentive plan would best address the challenge of rising labor costs and employee satisfaction:

  • What are the pros and cons of each of these incentive play plans?
  • Which program would you recommend to your CEO that would best meet his goals?
    • Provide the rationale for your explanation.

Question 2

You are the HR Manager for the Pleasantville School District. Although it hadn’t done so before, the district recently implemented a person-focused pay program. This program offers a pay increase to teachers who pursue additional education and training. You were on the team that developed this policy, which has been approved but has not yet been disseminated district-wide.

One of the high school teachers has scheduled an appointment with you to review how the program works. You plan to review the policy with the teacher and give him a paper copy as a leave-behind piece.

In this post:

  • Write the policy for the Pleasantville School District’s person-focused pay program that will be shared with the teacher. At a minimum, be sure to address the person-focused pay program’s:
    • Purpose and description, including effective policy dates.
    • Eligibility requirements. (Who is eligible to participate in the program?)
    • Acceptable types of education and training. (What is eligible for reimbursement?)
    • Awards for successful completion of training or education (promotional opportunities, compensation, non-monetary rewards, et cetera).

Question 3

You have recently been hired as the HR manager of a small furniture manufacturing company that has 63 employees. These employees include everyone from line workers to upper management. You are the first HR person the company has had. One of your first assignments was to evaluate the fairness of the company’s current compensation system.

Based on your evaluation, you have discovered a number of inconsistencies:

  • Some line workers earn more than managers.
  • Some managers earn twice as much as other managers even though the work is similar.
  • Some line workers are making significantly more money than others even though they are performing the same work.

What recommendations would you make to improve the consistency of the company’s compensation system?

  • Be sure to provide the rationale for your recommendations.

Question 4

  • In your opinion, are discretionary employee benefits an entitlement, or are they earned based on performance?
    • Support your response with specific examples.

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