Compensation Strategy Report for HRPD705: Centennial College

This report presents a strategic compensation analysis, focusing on the development and application of a job evaluation plan for Eastern Provincial University. The report utilizes the point method, identifying and explaining compensable factors such as skill, effort, responsibility, and work condition, along with their subfactors. It details the factor scales used and provides a weighted summary rating chart. Furthermore, the report recommends specific forms of pay, including a fixed base pay scale and performance-based monetary benefits. The analysis also discusses the rationale behind the recommendations, referencing the efficiency wage theory and the reservation wage theory. Finally, the report identifies additional information needed to refine the recommendations, such as current pay scales, performance levels, and profit margins.

Running head: COMPENSATION STRATEGY
Compensation Strategy
Name of the Student
Name of the University
Author note

1COMPENSATION STRATEGY
Question 1: What policy regarding external competitiveness would you advise? List the
options and the pros and cons of each policy option. Offer the rationale for your
recommendation.
While making policies, an organization must consider regional and global competition and co
me up with strategies that not only help the organization to keep strong competitive
advantages, but also ensuring a stable as well as increasing workforce efficiency
(Eisenberger, Malone & Presson, 2016). These are the possible paying strategies for
marketing manager with competitive advantages and disadvantages:
Policies Advantage Disadvantage
Similar pay with competitors It helps to reduce the total
amount of effective expenses of
the payroll
There will be no additional
advantage to attract larger labor
market.
Paying more than the
competitors or overpay
It reduces the turnover and
absenteeism while increasing
the employee engagement and
performance level
Additional monetary
compensation can increase the
human resource related
expanses
Paying less than the competitors
or pay lag
Poor monetary benefit can
decrease the human resource
related expanses
In increases the turnover and
absenteeism while decreasing
the employee engagement and
performance level

2COMPENSATION STRATEGY
The most risk free and profitable recommendation to select payment policies will be similar
payment policy which will help to reduce the total amount of effective expenses of the
payroll.
Question 2: What forms of pay would you recommend?
The basic wage is the fundamental conditions of an individual's life, so getting an
organization's monthly wage scheme will never assist them retain their employee power for
which the department of Human Resources will remain responsible as turnover hinders the
organization's development. Compensation in its entirety involves different types of award
schemes that are the fundamental wage for the quantity of job performed, achievement
compensation, merit-based rewards, and others (Milkovich et al., 2017). From the above
analysis of policies the following recommendations can be made for Northern Software
• Fixed base pay scale for marketing manager to balance payroll expanses
• Yearly basis Monitory benefit policies for marketing manager depending on
departmental performance
• Monthly monitory benefits based on overtime works and personal performance
Question 3 Identify and discuss which ones you used to support your recommendation?
Efficiency Wage Theory as the strategies that we have implemented concentrate on gaining
and motivating present staff with wages that suit their direct rivals and, in addition, to
keeping staff happy at job, we have implemented a quality salary that demonstrates that
workers ' skills will be valued in the form of reward payments and increments that are once
again a correct. Also, the principle of reservation wage theory is clearly visible which states

3COMPENSATION STRATEGY
that work seekers will not even choose jobs if the payment I d is below the exchange level, no
matter how exciting the job might be (Milkovich et al., 2017).
Question 4. List three pieces of additional information you would like to have to refine
your recommendation
Policies Information
Fixed base pay scale for marketing manager
to balance payroll expanses
Current pay scale and compensation for the
marketing manager
Yearly basis Monitory benefit policies for
marketing manager depending on
departmental performance
Performance level in percentage of performance
improvement.
Monthly monitory benefits based on
overtime works and personal performance
Percentage of cardinal profit because of marketing
improvement

4COMPENSATION STRATEGY
Reference:
Eisenberger, R., Malone, G. P., & Presson, W. D. (2016). Optimizing perceived
organizational support to enhance employee engagement. Society for Human
Resource Management and Society for Industrial and Organizational Psychology, 2-
22.
Milkovich, G., Newman, J., Gerhart, B., & Yap, M. (2017). Compensation (5th ed.). Canada:
[Whitby, Ont.] : McGraw Hill Education.