Case: Problem in Pay System

MGT 302 Case problems in pay system Xiamiao Zhu 1. Are the CCUA departments current pay practices concerning data processor IIs and computer analyst Is externally equitable? Explain your answer. Pay practice in CCUA * Data processor II position * $11. 00$12. 70 per hour. * $24,960 per year based on their 40-hour workweek. * Health and life issuance is provided by the company at a cost of $950 per year per employee. * computing device analyst I position * Salary range $25,500$32,500. * The average salary paid to the eight incumbents is $31,500. Health and life issuance is provided by the company at a cost of $950 per year per employee. Survey data CCUA Average salary Mfg/ Consumer Mfg/ Industrial Banking Other Financial service DP services Wholesale dispersal Junior analyst and programmer 31,500 35,156 33,750 40,714 35,000 32,143 37,500 32,875 Data processor 24,960 27,500 26,000 29,000 28,000 26,500 26,000 27,000 * Data processor II position closely matches the keep ups Data pr ocessor. Computer analyst position is most comparable with surveys junior analyst and programmer. * Both DP IIs and CA Is at CCUA are underpaid compare to the market. * Both DP IIs and CA Is at CCUA have $950 health and life insurance. 2. What specific action, if any, do you recommend be taken now? Be specific and justify your recommendations as fully as possible. * Conduct a wage survey Who is the relevant labor market? What is the competition paying? What sources for market data? What benchmark jobs should be included?Get the survey done in the rural southwestern United States area more in the locality where department is situated so that data is more comparable and find the other benefits of the survey companies. * Choose a pay policy and develop a pay structure decrease the number of the employee and pay the higher salary. Or hire employee buy using little recruitment cost and training cost. Hire and pay employee following the policy and the structure. 3. What specific strateg y do you recommend for the future so that these types of problems can be anticipated and avoided. Exit interviews understand the reason for not stay in the company and find the solution to avoid it. * Better scanning of local and regional external pay referents, do let employee think you are paying much less than others. * Better two-way communication with employee. Do the employee satisfaction survey once a year before somebody is trying to quit. * Provide no monetary benefits * Provide larger budget for job categories 4. What additional instruction in this situation would have enable you to improve the quality of your recommendations? Improve the exit interview and focus on the questions like * What is your primary reason for expiration? * Did anything trigger your decision to leave? * What was most satisfying about your job? * What was least satisfying about your job? * What would you change about your job? * stupefy some information about pay equity information http//www. hrs dc. gc. ca/eng/labour/equality/pay_equity/about/guide. shtml * Conduct the web search O* net profit to find if there is any help. 5. Occupations Wage & employment trend Computer systems analysts average wages (2011) $37. 7 hourly, $78,770 annual Employment (2010) 544,000 employees Projected growth (2010-2020) meteoric than average (20% to 28%) Projected job openings (2010-2020) 222,500 Top industries (2010) Professional, Scientific, and Technical Services (33% employed in this sector)Finance and Insurance (14%) Computer programmer Median wages (2011) $34. 92 hourly, $72,630 annual Employment (2010) 363,000 employees Projected growth (2010-2020) Average (10% to 19%) Projected job openings (2010-2020) 128,000 Top industries (2010) Professional, Scientific, and Technical ServicesInformation Computer and information system manager Median wages (2011) $56. 4 hourly, $118,010 annual Employment (2010) 308,000 employees Projected growth (2010-2020) Average (10% to 19%) Projected job open ings (2010-2020) 102,800 Top industries (2010) Professional, Scientific, and Technical ServicesFinance and Insurance Operations research analysts Median wages (2011) $34. 59 hourly, $71,950 annual Employment (2010) 65,000 employees Projected growth (2010-2020) Average (10% to 19%) Projected job openings (2010-2020) 30,000 Top industries (2010) Professional, Scientific, and Technical Services (23% employed in this sector)Finance and Insurance (22%)Government (17%)