HRM590: Compensation Decisions
Your job now is to pull together all the information you’ve completed so far in class and make salary decisions for your team. You have completed Cathy’s
evaluation and received assignment feedback. This is the first year that you’ve made salary decisions for this team. Be sure to carefully review the information
provided. You may simply type in the cells as the text will automatically wrap. You are required to:
1. Enter Cathy’s appraisal rating (she is last on the list);
2. Within your budget dollars, make your salary decisions based on performance for your team taking into consideration their Salary Grade and the Pay
Ranges identified for the Salary Grades (fill in the Salary Decision Column);
3. Within your budget dollars award bonus money (fill in the Bonus Dollars Column);
4. In the green line areas, provide your substantiation and risk analysis for the salary decisions made; and
5. Identify any items from this scenario in whole you may want to address.
Evaluation ratings are 1 = Needs Improvement to 5 = Exceeds Expectations
Salary Budget: $9,000
Bonus Budget: $5,000
Company Designated Salary Pay Ranges
A2 = $12,750 – 17,000
A3 = 16,500 – 22,000
A4 = 21,000 – 28,000
Employee Information
Salary
Grade
A4
Current
Salary
$27,900
John is a white male, 58YO, with 31 years’ service. John is a good worker
and you like him. You don’t want to lose his skills and experience as he’s
been talking about retiring, but you realize his skills are too valuable to lose.
Substantiation and Risk Analysis: [Just type substantiation and risk analysis in here; text will wrap.]
Alice is a Hispanic female, 42YO with 17 years’ service. Alice is a good
A4
$22,500
worker. She has a lot of potential, which netted her the higher rating. She
needs some more skills and experience at this level though.
Substantiation and Risk Analysis:
Calvin, 28YO black male with 9 months service. Calvin is a real go getter.
A4
$26,500
He hasn’t been with the company long enough to earn a higher rating, but
his work is outstanding, high skill set and is looking to stay with our
company for a career.
Substantiation and Risk Analysis:
Jane is a 32YO white female with 12 years’ service. Jane joined the
A3
$19,100
company as an A3. Her work is satisfactory, nothing to brag about, but
she’s been with the company awhile and can be dependable.
Substantiation and Risk Analysis:
Beth is a 64YO Asian female with 41 years’ service. Beth stated she would
A3
$19,700
probably retire this year, but has yet to turn in her paperwork. She’s had a
history of higher ratings, but her ratings have slipped over the last 6 years.
Substantiation and Risk Analysis:
Ben is a 47YO white male with 27 years’ service. He’s a good worker, been
A3
21,000
% at Pay
Scale*
99.6%
Appraisal
Rating
5
80.4%
3
94.6%
4
86.8%
3
89.5%
3
95.5%
4
Salary
Decision
Type $
amount in
here
Bonus
Dollars
Type $
amount in
here
with your group for a couple years. Hasn’t yet expanded his skills, which
you thought he’d do even though hired for a specific job. What he does, he
does outstandingly.
Substantiation and Risk Analysis:
Alex is a 30YO white male with 9 years’ service. He’s quite a guy, performs
well at his job. Started as an occupational worker and has worked his way
into management.
Substantiation and Risk Analysis:
Ken is a 20YO Hispanic male with 1 year service. Ken is young and fresh.
You think he should have been hired at a higher level because his skills are
so good. You don’t want to lose him because he adds value to the
business. You’ll probably jump him to an A4 position soon.
Substantiation and Risk Analysis:
Cathy is your 19YO (ethnicity unknown) female HR Receptionist. She has
been with the company for 1 year. You recently completed her performance
evaluation.
Substantiation and Risk Analysis:
A2
$15,800
92.9%
5
A2
$17,000
100%
4
A2
$12,000
70.6%
[insert the
rating you
gave Cathy]
*This shows the pay scale range for each employee by percentage. Formula is current salary ÷ top salary range. This percentage range should be between 75% – 100%.
Overall Comments:
