Section 2: External Competitiveness

OL 325 Milestone Three Guidelines and Rubric
Section 2 shifts your focus outside of the firm to understand its relationship with the external marketplace. You will use market survey data to compare pay
rates of positions inside the firm with those in the marketplace to establish the foundations of market-competitive pay. The analysis of market data also leads
you to the determination of appropriate pay-policy mixes for each of its job structures. In this section, you are asked to use CompAnalysis software developed by
Howard Weiss at Temple University, which is also available in MyManagementLab.
In Section 2 of this simulation, you will shift your focus from concentrating on e-sonic’s internal consistency to its external competitiveness. First, you will be
introduced to the tools compensation professionals use to allocate total compensation most effectively within job structures. Many employees are unaware that
their total compensation consists of much more than just base pay. Compensation professionals allocate total pay (for example, base pay, benefits, and different
types of incentives) to motivate employees in different ways. You will use some of these tools to develop pay policy mixes for each e-sonic job structure. Next,
you will consider pay policy level decisions for each job structure.
You will then use CompAnalysis (the included software program) to conduct an external market survey. Specific instructions provided with the software program
will guide you through the steps involved in the compensation survey exercise. Finally, you will report survey findings, interpreting regression analysis results
generated by the software, and provide an explanation of major decisions reached.
IMPORTANT: Users of the CompAnalysis software must set the macros to a low level in order for the software to work. If the macros are set on too high of a
security level, then the software will be disabled and not work properly. In order to do this, navigate to the “Tools” menu, click “Macros”, then “Security”. Lower
the security level, save the spreadsheet, close it completely, and then re-open.
Section 2 Outline:
Executive Summary Findings
1. Determine Appropriate Pay-Policy Mix
2. Pay-Policy Level Decisions
3. Compensation Survey
a) Choose competitors based upon industry, size, and union status.
b) Select benchmark jobs for each structure using benchmark job descriptions.
c) Reconcile differences using the benchmark job comparison sheet.
d) Update salary data for inflation using CPI-U.
4. Implementation of Salary Survey Results
a) Report and interpret results of regression analysis for each job.
b) Integrate external and internal structures by creating pay grades and ranges.
c) Evaluate and summarize decisions made for each job structure.
The External Competitiveness section is fully described in the MyManagementLab Building Strategic Compensation Systems casebook for faculty and students,
linked in the course menu. Follow the explanations and outline to complete this milestone. Section 2: External Marketplace is due at the end of Module Six.
Rubric
Requirements of submission: Each section of the final project must follow these formatting guidelines: 5–7 pages, double spacing, 12-point Times New Roman
font, one-inch margins, and discipline-appropriate citations.
Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value
Section 2: External
Competitiveness
Provides in-depth market
competitiveness report with all
of the elements of the outline
provided in Section 2 of the
Building Strategic
Compensation Project
documentation
Provides market
competitiveness report with
most of the elements of the
outline provided in Section 2 of
the Building Strategic
Compensation Project
documentation
Provides market
competitiveness report with
some of the elements of the
outline provided in Section 2 of
the Building Strategic
Compensation Project
documentation
Does not provide market
competitiveness report with
elements of the outline provided
in Section 2 of the Building
Strategic Compensation Project
documentation
50
Integration and
Application
All of the course concepts are
correctly applied
Most of the course concepts
are correctly applied
Some of the course concepts
are correctly applied
Does not correctly apply any of
the course concepts
20
Critical Thinking Draws insightful conclusions
that are thoroughly defended
with evidence and examples
Draws informed conclusions
that are justified with evidence
Draws logical conclusions, but
does not defend with evidence
Does not draw logical conclusions 20
Writing
(Mechanics/
Citations)
No errors related to
organization, grammar and
style, and APA citations
Minor errors related to
organization, grammar and
style, and APA citations
Some errors related to
organization, grammar and
style, and APA citations
Major errors related to
organization, grammar and style,
and APA citations
10
Total 100%