Eastern Provincial University: Strategic Compensation Report, HRPD705

This report addresses a strategic compensation assignment for HRPD705, focusing on Eastern Provincial University. The student develops a job evaluation plan using the point method, identifying and explaining compensable factors (skill, effort, responsibility, and work condition) and their subfactors (knowledge, experience, mental demands, physical demands, accountability, accuracy, environment, and hazards). The report details the factor scales used and provides a summary rating chart to evaluate various job titles, including clerk stenographer and draftsperson. Furthermore, the report includes an analysis of external competitiveness policies for marketing managers, comparing different payment strategies (similar pay, overpay, and pay lag) and recommending a similar pay strategy to enhance work engagement and reduce turnover.

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.
To develop the policies of marketing manager wage, the organization has to consider the
local and national level competitive labor market. Therefore, keeping the high
competitiveness while increasing the employee engagement and operational efficiency,
should be the most essential factors while developing these policies (Milkovich et al., 2017).
In the following table the advantage and disadvantage of using three type of payment policies
for the post of marketing manager will be discussed.
Policies Advantage Disadvantage
Similar pay with competitors It helps to reduce turnover
rate and increase their work
efficiency.
There will be no additional
advantage to attract larger
labor market.
Paying more than the
competitors or overpay
It can reduces the rate
turnover and absenteeism
while increasing the number
of new employees
Additional monetary benefit
increases the human
resource related expenditure
Paying less than the
competitors or pay lag
Less monetary benefit
decreases the expenditure in
human resource.
It increases the turnover and
absenteeism
Among the above payment strategies the most risk free as well as profitable payment
strategy for the marketing managers will be the similar payment policy which will help to
increase the work engagement and reduce the turnover.

2COMPENSATION STRATEGY
Reference:
Milkovich, G., Newman, J., Gerhart, B., & Yap, M. (2017). Compensation (5th ed.). Canada:
[Whitby, Ont.] : McGraw Hill Education.