FastCat: Analysis of Employee Wages, Pay Mix, and Compensation

This report analyzes FastCat's approach to employee compensation, addressing issues related to wages, pay mix, and the application of Return on Assets (ROA) in financial disclosures. The report examines the conflict between the union and management regarding salary levels and proposes strategies for employee retention and motivation, including incentive programs and cash rewards. It explores pay mix strategies, benchmarking jobs against competitors, and the selection of companies for comparison based on ROA and other factors. The report includes an analysis of survey data, pay forms, and metrics used for comparison, as well as an overview of a proposed grade and range structure and a strategic map for compensation. The report also considers the 75th percentile metric and its impact on employee turnover, ultimately aiming to improve the overall compensation structure to retain employees and improve business performance. The report also contains a comparison between various companies, their industry, scope, ROA, and wages/total compensation.

REPORT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Pay level.......................................................................................................................................3
Pay mix........................................................................................................................................3
Benchmarking jobs......................................................................................................................4
3.3 Companies selected for comparison..........................................................................................5
3.3.1 Update of survey data.........................................................................................................5
3.3.2 Pay forms............................................................................................................................6
3.3.3 Metrics for comparison.......................................................................................................6
3.3.4 Comparison results with other companies..........................................................................7
3.3.5 Overall results analysis.......................................................................................................8
3.4 Integration of internal and external structures...........................................................................9
3.5 Proposed grade and range (or “Band &Zone”)structure..........................................................10
3.6 Strategic map...........................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
In the present report there has been analysis based on the issues faced by FastCat in
terms of wages or consideration payable to their employees as well as application of ROA
technique in the financial disclosure. Therefore, in accordance with the overbalance changes to
be made in the firm the union and managers will make their mutual understanding over the
variations in the jobs and duties assigned to them. There has been various debates over the
average global revenue rates and the increment in the salaries of the employees. There will be
consultancy based on retaining the employees in most favorable manner as compared with the
other competitors of business. There will be allotment of the grade and rates of compensation
which will be payable to the managers in consideration with making the adequate improvements
in the operations of business.
Pay level
There are some of the issues that are observed in case of the business firm as union and
management are in front of each other in respect to salary issue. It can be observed that
management is giving less amount of salary to the employees and it is considering such kind of
things right. On other hand, Union members have common belief that in comparison to market
rate less amount is paid to them and due to this reason they are entitled to received increased
amount on their salary and wages. Both entities are stand on their point of view and due to this
reason conflict arises between them. In current time period it can be observed that business firm
is on growth track and it is earning profit in its business but there are some of the debt
obligations that firm have to pay in its business (Chen & et.al., 2016). Due to this reason it is
following cautious approach and under this it is planning to make payment to the creditors and
when all dues will be paid hike will be given to employees on their current salary amount.
However, from such kind of plan union members are not satisfied and due to this reason
management of the firm decide that attractive amount of incentive and cash reward will be given
to the employees so that they receive additional income and feel motivated at workplace to work
hard in interest of the business firm (Ismail & et.al., 2016). Thus, it can be said that firm prepare
perfect plan and it identify middle path to handle such kind of complex problem.
Pay mix
Pay mix refers to the situation where combination of salary and extra benefits are
determined which is given to the employees working at different level of management (What is
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pay mix in sales compensation, 2017). It must be noted that employees working at varied level of
an organization have different salary structures and according to position they have in the
company specific amenities are also received. Hence, it can be said that pay is not same for all
employees and way in which aggregate amount computed will include different elements with
change in position in an organization. Fast cat is planning to give same salary to the employees
as it earlier give at workplace and additionally it will give incentives and other benefits to the
employees (Merriman, Turner, Galizzi & HaynesBaratz, 2016). All these things will motivate
employees to work hard at the workplace. This is because they are received fixed amount of
salary on doing work that they already done in pastime period. Now for earning more in the firm
and delivering excellent quality product and service employees make their maximum effort. All
these things lead to increase in revenue of the business firm. It can be said that pay mix have due
importance for the firm because it help it in making adjustment in its cost structure (Perez &
Juan, 2017). Thus, firms must after considering number of factors must make adjustment in their
pay mix in such a manner that employees get satisfied and employee cost remain in control in the
business.
Benchmarking jobs
Fastcat job Title Survey job title JE Point
Office Aide Office Support 1 90
Data Processor Office Support 2 110
Administrative Assistant II Office Support 3 135
Administrative Assistant Office Support 4 170
Executive Staff Assistant Office Support 5 180
Office Leader Office Support 6 250
Marketing Support Marketer 1 150
Field Marketing Rep Marketer 2 220
Business Solutions Consultant Marketer 3 270
Business Account Leader Marketer 4 320
Technical Marketing Consultant Marketer 5 400
Visionary Champion Marketing Manager 3 475
Technician Technician 1 100
Technical Analyst A Technician 2 150
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Technical Analyst B Technician 3 160
Senior Technician Technician 4 220
Usability Engineer Engineer 1 190
Software Development Engineer Engineer 2 250
Software Interface Designer Engineer 3 330
Software User Interface Architect Engineer 5 390
Project Manager Engineering Manager 1 430
Senior Fellow Engineering Manager 3 540
It can be seen from above table that office aide job matched to the office support 1 job
because in case of both sort of jobs entirely office related work is done and due to this reason it
can be said that there is similarity between both profiles. Thus, whatever is salary offered for
office support 1 job can also be given to the individuals that are working on profile of office
aide.
On other hand, it can be observed that office support 2 jobs matched to the data processor profile
because in case of both jobs data is gathered and processed and analysed further to identify
useful facts about the business and to make business decisions. It can be said that to great extent
these profiles matched to each other.
3.3 Companies selected for comparison
In respect to survey one of the biggest challenge was to select a company that need to be
taken in to account in order to determine salary or wages of the employees that are working in
the organization. In this regard relevant firms need to be taken in the survey so that accurately
estimation can be made about the way in which salary are distributed among employees by the
business firms (Spence, Mueller & Chang, 2016). However, on this point conflict arises between
management and employees. This is because management think that it will be better to include
those firms in survey that have ROA equal to or nearby to the business firm. On other hand,
union intend to include those firms in the survey that have higher ROA relative to FastCat which
can not be considered good. This is because if ROA of survey firms and company is different
from fair comparison of salary can not be made between employees of an organization (Koch,
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2016). Apart from this, it was decided that some other factor will also be taken in to account to
include firms in the survey. In this regard, management opinion was that only medium
3.3.1 Update of survey data
In accordance with having the satisfactory pay scale in the business there has been
various strategies and plans were made by FastCat. There are 300 employees are working in the
organization and they have demanded to have a bull in their salaries or wages. Therefore, in
these regards they are supporting the concept that the firm must follow or implicate the ROA
technique which will resultant have increment in the revenuer gathering. Due to such variations
and fruitful gains there will be increments in the remunerations for the workforce. Therefore, the
survey has facilitated a fair evaluation as it acknowledged the age of data in regards with the
inflation rate (Tung, 2017). There has been analyses that the nationals average pay will be
increased in the year 2010 it was 2% in all the corporations. On the other side in year 2010-201
various software companies has revealed the budgets and planning surveys which presents that
there has been increment in the average global salaries are for 2.59%. Thus, it can be said that,
there is need to make the adequate increment in the wages paid to the employees in Fastcat.
However, these are the global financial reform which are need to be determined and analyses by
the firm in context with making fruitful efforts.
3.3.2 Pay forms
In terms with making the revolution in the salaries and remuneration payable to the
employees in the firm. There will be need of making the adequate improvement in the
operational activities (Yang & et.al., 2017). Therefore, in these regards the employee union has
agreed over having the fixed costs in the premises as they want a fixed amount of revenue
through a period. This will be beneficial for them in consideration with having the adequate
amount of wages which will be other than the incentive or bonus benefits. On the other side,
FastCat has decided that they would facilitate the cash plus bonus to them. That means the bonus
rate will be variable while wages will same in all the period. Thus, it will be beneficial for the
managers in the organization to have the appropriate amount of funds for business operations as
well as for satisfying the workforce.
3.3.3 Metrics for comparison
The professionals in FastCat that the companies which are considering the 75th percentile
metric in terms of making the payments to their employees are having the favorable turnover.
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Thus, in these regards the employee union has decided to have the 75th percentile technique in
the daily operations which will be beneficial for the organization. Therefore, this analysis has
been made over the various competitors of this corporation which are offering higher revenue to
their employees (Moreira, 2016). Therefor, various employees has planned to make switch from
their organization as to have the better pay scale in the other organizations. However, it will be
the big loss of the company as it they loss the maximum numbers of employees so the
professionals must make necessary plans to improve the pay-offs as well as include the 75th
percentile technique.
3.3.4 Comparison results with other companies
To analyses the profitability of the various firms and the 75th percentile used by them
there has been determination of the wage rate which are[resenting the below listed table. There
will be discussion based on the regression line which will be presented in the below listed
diagram.
Company
Industry
Criteria Scope ROA (%) Wages/ Total compensation
1
Software
business Medium 6 0.38
5
Software
business Small Unknown 0.76
9
Software
business Large 0.12 0.85
15
Software
business Small 5.94 0.76
18
Software
business Medium -9.65 0.72
29
Software
business Large 15.35 0.5
35
Software
business Large 0.59 0.47
42
Software
business Small 12.65 0.85
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51
Software
business Medium Unknown 0.84
56
Software
business Medium 8.17 0.82
60
Software
business Small 6.95 0.78
61
Software
business Large Unknown 0.49
3.3.5 Overall results analysis
In accordance with the previous table there has been comparison between various
companies and the level of management maintained by them. Therefore, in the below listed table
there has been analysis which will be based on the ROA techniques adopted by various
corporations as well as the rate of compensation were payable to them.
Firms
Industry
Criteria Scope ROA (%) Wages/ Total compensation
4 Manufacturing Large 4.26 0.84
12 Financial Medium 8.25 0.75
15
Computer and
Hardware Medium -7.54 0.83
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16 Semiconductors Small 15.86 0.76
18
Software
business Large 12.6 0.72
26 Financial Large Unknown 0.68
31 Manufacturing Small 2.9 0.89
48
Computer and
Hardware Medium 18.25 0.73
49 Semiconductors Large 5.69 0.69
51
Software
business Medium 9.36 0.84
61 Manufacturing Small Unknown 0.79
Interpretation:
There has been various favorable and unfavorable outcomes which are been seen in the
above listed analysis. Hence, it can be said that there is need to make the adequate analysis over
the usage of various industrial operations in terms of ROA and the wages rates. Therefore, it will
be suggested to FastCat that the analysis will be based on the other terms which are need to be
considered by the business in terms of making the payments to the employees in the company.
Therefore, FasCat are not following this technique as well as they do not facilitate the payments
to the employees while they seek for hiring the new talent in the premises. Therefore, it has been
seen that the managers and employee union has planned to focus over increasing the profitability
of the business as well as make the adequate changes in the operations thus, it can be said that, it
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the firm implicate the ROA method while preparing the financial then it will become fruitful for
theme in terms of making the adequate increment in the profitability.
3.4 Integration of internal and external structures
To determine the implication of this technique by the FastCat there will be favorable
changes in the internal and external environment of organization.
3.5 Proposed grade and range (or “Band &Zone”)structure
There will be initial step taken by the firm in consideration with the adequate increment
in the profitability as well as revenue retention (Diewert & Fox, 2016). It has been decided
among managers and employees in the firm that they are focusing over the use of integrating
structure as well as make necessary decision which will be in relation with the grades they have
acquired. However, in the following table there has been analysis based on the numbers of jobs
and the grade allotted to them such as:
JOB POINTS
Marketing support 112
Office aide 122.6
admin assistant 122.8
data processor 123
admin assistant II 179
Technician 185
Massage Therapist 188.5
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Office leader 194.6
Software developer engineer 197.5
Technical analyst A 202.5
Executive staff assistance 210
Senior technician 226.5
Business Solutions Consultant 231
Usability Engineer 252.5
Technical analyst B 278
Software interface designer 286.5
Field Marketing Representative 298
Business account leader 301
Software user interface Architect 332
Senior fellow 365.5
Visual Champion 389
Visual designer 415
Technical Marketing Consultant 435.5
Project manager 479
In consideration with the above mentioned report it can be said that there has been
differences in the grads of the jobs in the current scenario. These has been marked in different
colors which indicated that each job is intend to have good progression to move up to the higher
grade. Therefore, the importance of analyzing the grade is that it will be fruitful for both
employees and the managerial professionals in terms of having the proper retention of the
workers as well as acquiring the key objectives of the firm.
Therefore, it will be suggested to the FastCat that the professionals n the corporation
must pay attention over the grade as well as to have the appropriate improvement in the
operations. They must focus over the grade 4 and 5 has it will be profitable for the business as
per the higher scope. Therefore, there will be increment in the numbers of jobs for the data
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processor and admin assistant which will be fruitful in terms of handling the business operations
as well as enhancing the efficiency of the firm. However, the professional must consider an
appropriate communication environment in the organization. These changes are need to be
adopted in the operations of the business which will be fruitful for them in terms of having good
coordination as well as sharing of the information from one department to another. In accordance
with the grade 4 there will be requirement of proper knowledge as well as experience to that
filed. Thus, it has been planed by managers and mutual agree with the employees that there will
be extra period for training and development in relation with these jobs. They have agreed that
these will require the adequate attention as well as the proper execution of the work.
It has been planed by managers to have the overlap between grade 1 and 5 because there
are favorable changes of making the adequate communication in the firm. Therefore, in terms of
deciding the marketing strategies there will be need of deciding the promotional channels,
requirement of funds as well as the methods of present the adequate development. Thus, it can be
said that with the help such tools this will be beneficial for the organizations in terms of making
the appropriate increment in the profitability as well as it will help in retaining the employees in
the firm.
3.6 Strategic map
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In accordance with the mutual agreement by employees and managers that both are
having the favorable gains as per the market value of pay rates will be payable to the employees.
However, the managerial professional in the firm has decided that in terms with becoming the
competitive as well as have the sustainable earning there is need to make the adequate increment
in pay level. These will be helpful for them in terms of making the adequate gains as well as
brings opportunities to be the employer of choice.
Therefore, there has been positive changes which has been seen in the operations of the
business which are resulting in the favorable collaboration, communication and data sharing in
the premises. There has been improvements in the relationship between employees and managers
in the firm.
CONCLUSION
Hereby, in consideration with the above report it can be said that the FastCat can become
able to make the adequate increment in the profitability as well as make the adequate gains as if
they make increment in the salaries of employees. Man angers in the firm must plan to make the
adequate increment in the salaries of employees as per the market value as well as favorable
rates.
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REFERENCES
Books and Journals
Chen, C. X. & et.al., (2016). The Effect of Pay Level on Employee Selection and Performance in
Mission-Driven Organizations.
Diewert, W. E., & Fox, K. J. (2016). Alternative User Costs, Rates of Return and TFP Growth
Rates for the US Nonfinancial Corporate and Noncorporate Business Sectors: 1960-2014
(No. erwin_diewert-2016-7). Vancouver School of Economics.
Ismail, A. & et.al., (2016). Relationship between Pay Level, Pay Structure and Job Commitment
in Malaysian Public Community College: The Mediation Role of Distributive Justice. The
South East Asian Journal of Management. 99-112.
Koch, L. (2016). Bioinformatics: Benchmarking transcript expression quantification. Nature
Reviews Genetics. 17(6). 316-316.
Merriman, K. K., Turner, L. A., Galizzi, M., & HaynesBaratz, M. (2016). Pay mix policies as
(dis) incentives in motivated job choice decisions. Translational Issues in Psychological
Science. 2(2). 184.
Moreira, M. (2016). Return on assets in the Tobacco Industry analysis of the four main Tobacco
Manufacturers (Doctoral dissertation).
Perez, I. I., & Juan, E. (2017). Executive Compensation and Fraud: Trends in Executive Pay Mix
and Company's Increased Exposure to Fraud.
Spence, R. T., Mueller, J. L., & Chang, D. C. (2016). A novel approach to global benchmarking
of risk-adjusted surgical outcomes: beyond perioperative mortality rate. JAMA surgery.
151(6). 501-502.
Tung, Y. K. (2017). Uncertainty analysis and risk‐based design of detention basin without
damage function. Water Resources Research. 53(5). 3576-3598.
Yang, L. & et.al., (2017). Theoretical modeling of detectivity of magnetoelectric magnetic
sensor and ultra‐high magnetic detectivity of Metglas/PMNT/Metglas laminates. physica
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Online
What is pay mix in sales compensation, 2017. [Online]. Available through:<
https://www.xactlycorp.com/blog/pay-mix-differ-sales-role/>.
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