Fast Cat: Phase 3
Compensation structure for FastCat
Executive summary
In Phase I we looked at the descriptions of sample jobs at FastCat and proposed a structure for the jobs based on the concepts of internal equity and organizational objectives of innovative product design, improved marketing and cost competitiveness. Based on the content and value of the job descriptions available we had created a tailored and hierarchical structure, which supported the organization strategy, work flow and motivates behaviour towards organization’s objectives.
In Phase II we ensured external competitiveness by analyzing the external market survey data on total compensation and pricing FastCat’s structure in accordance with it. We mapped FastCat’s jobs with the benchmarked jobs and defined the market by selecting the relevant industries to benchmark. We adjusted survey data to account for age and defined the pay policy line by setting it at -10% and - 20% of market line. We have then used bands and zones to integrate internal and external structures.
Now in phase III, we have recommended a strategy for pay for performance based on the organizational objective defined in phase I. We analyzed the base salaries of 25 employees of FastCat based on their
Compa ratios and identified Green circles (salaries below the pay structure) and Red circles (salaries above the pay structure). Accordingly adjustments were made in their base salary or grade wherever necessary. We have then given weights to the balance score card based on the employee and customer survey as well as the compensation strategy of the organization. Next, we calculated the mean benefit/base pay ratio for competing companies that fall in our area of interest and decided to set it at
11.3%. Lastly, we believe that success of any new policy will depend on the acceptance and participation by the employees. Hence we have recommended active clarification of goals, monitoring process, information gathering, etc. to
Executive summary
In Phase I we looked at the descriptions of sample jobs at FastCat and proposed a structure for the jobs based on the concepts of internal equity and organizational objectives of innovative product design, improved marketing and cost competitiveness. Based on the content and value of the job descriptions available we had created a tailored and hierarchical structure, which supported the organization strategy, work flow and motivates behaviour towards organization’s objectives.
In Phase II we ensured external competitiveness by analyzing the external market survey data on total compensation and pricing FastCat’s structure in accordance with it. We mapped FastCat’s jobs with the benchmarked jobs and defined the market by selecting the relevant industries to benchmark. We adjusted survey data to account for age and defined the pay policy line by setting it at -10% and - 20% of market line. We have then used bands and zones to integrate internal and external structures.
Now in phase III, we have recommended a strategy for pay for performance based on the organizational objective defined in phase I. We analyzed the base salaries of 25 employees of FastCat based on their
Compa ratios and identified Green circles (salaries below the pay structure) and Red circles (salaries above the pay structure). Accordingly adjustments were made in their base salary or grade wherever necessary. We have then given weights to the balance score card based on the employee and customer survey as well as the compensation strategy of the organization. Next, we calculated the mean benefit/base pay ratio for competing companies that fall in our area of interest and decided to set it at
11.3%. Lastly, we believe that success of any new policy will depend on the acceptance and participation by the employees. Hence we have recommended active clarification of goals, monitoring process, information gathering, etc. to