Overview
- PART E WB 4043
- Write the initial guiding principles, in 1-2 pages, that you will use to define the company's compensation philosophy regarding how the company compensates its employees.Collapse All
Introduction
For an organization to implement an effective compensation and benefits policy, it is helpful to look at both the needs of the company and the individual, from both a practical and ethical perspective. Within this context is the legal and regulatory framework that guides the standards of HR policy.Through this assessment, you will get an opportunity to establish the groundwork for studying compensation and benefits policy development. You will review labor laws that were referenced in your other human resource courses, and you will take a more focused look at the laws more relevant to wages and benefits. You will also look at the basic elements of any pay system.Consider the ethical issues that influence compensation policy and how they may or may not harmonize with personal, corporate, and societal values. Also, think about the fundamental relationship an individual has with a company and how the contract for work and reward may represent a deeper contract between the employee, the employer, and the society in which the business is conducted.
Instructions
Imagine you are the HR manager for a new company just opening its doors in your community. The CEO has asked you to prepare the initial guiding principles you will use to define the company's compensation philosophy regarding how the company compensates its employees.Complete the following:
- Describe the type of business, the number and types of employees (exempt and non-exempt), and the customer base you will use as your example company for this assessment, as well as the state and city or area of the state where your company is located.
- Describe the factors will be used to determine salary decisions (for example, appropriate qualifications, contributions, performance, and budget considerations).
- Discuss where the company wants to fit regarding compensation in the industry and related market. Bottom quartile? Industry average? Top quartile?
- Discuss whether the company will reward top performers with incentive pay.
- Discuss the role benefits (health, 401(k), et cetera) will play in the overall compensation package. Does the company want the benefits plan to be below market, at market, or above market? Why?
- Describe how other existing businesses in your community affect the guiding principles for your compensation guidelines. You can reference the "Overview of BLS Wage Data by Area and Occupation" from the Bureau of Labor Statistics to help you research information for your response.
Additional Requirements
Your assessment should also meet the following requirements:
- Written communication: Written communication is free of errors that detract from the overall message.
- Formatting: One-inch margins, appropriate headers, and a title page.
- Length: 1–2 double-spaced pages.
- Font and font size: Times New Roman, 12 point.
Important: You will use this same company as the focus for the upcoming assessments in this course as well.
Competencies Measured
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and scoring guide criteria:
- Competency 1: Evaluate the importance of compensation and benefits plans in attracting and retaining the most qualified talent.
- Describe a company for which compensation guiding principles will be created.
- Describe the factors that will be used to determine salary decisions.
- Discuss where the company wants to fit regarding compensation in the industry and related market.
- Discuss whether the company will reward top performers with incentive pay.
- Competency 2: Analyze base pay programs and the major laws and acts that govern employee pay.
- Discuss the role benefits (health, 401(k), et cetera) will play in the overall compensation package.
- Explain how existing businesses in a company's community affect the compensation guiding principles of the company.
PART F WB 4043
- Create a 3-4 page analysis of the of the job analysis process, considering how to prepare for a job analysis, the methods used to conduct the analysis, and how an organization can effectively use the results from the analysis.Collapse All
Introduction
If pay is to be based on work performed, some way is needed to discover and describe the differences and similarities among these jobs—observation alone is not enough. Job analysis is that systematic method. Two products result from a job analysis—job description and job specification. A job description is the list of tasks, duties, and responsibilities that make up a job. These are observable actions. A job specification is the list of knowledge, skills, abilities, and other characteristics that are necessary for an individual to have to perform the job. Thus, the description focuses on the job and the specification focuses on the person.
Conducting a Job Analysis
Job analysis is the process of studying a job to determine which activities and responsibilities it includes, its relative importance as compared to other jobs, the qualifications required to perform the job, and the conditions under which the work is performed. An important point about the job analysis is that the job, not the person doing the job, is assessed.
Instructions
In this assessment, create a plan to conduct a job analysis. Note: Use the same company you chose in Assessment 1.In a 3–4 page paper:
- Analyze the advantages of conducting a job analysis, and describe the challenges employers may face if they do not conduct job analyses.
- Provide a general description of a company, and a job within the company that you will use as the subject of your job analysis. You will use this information in future assessments as well.
- Evaluate the job analysis methods you will use to conduct the job analysis, and justify your selection of the methods. Also, identify the information you expect to gather from each method.
- Describe the steps you will take to prepare for the job analysis, including the resources you will need to obtain, appointments you will need to schedule, et cetera.
- Analyze the ways in which an organization can use the results of your job analysis.
Additional Requirements
Your assessment should also meet the following requirements:
- Written communication: Written communication is free of errors that detract from the overall message.
- Formatting: One-inch margins, appropriate headers, and a title page.
- Length: 3–4 double-spaced pages.
- Font and font size: Times New Roman, 12 point.
Competencies Measured
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and scoring guide criteria:
- Competency 1: Evaluate the importance of compensation and benefits plans in attracting and retaining the most qualified talent.
- Analyze the advantages of conducting a job analysis.
- Competency 4: Create a base pay and a base benefit plan.
- Evaluate the job analysis methods used to conduct the job analysis.
- Analyze the ways in which an organization can use the results of a job analysis.
- Competency 5: Apply the Capella Writing Standards to support professional practice
- Convey purpose, in an appropriate tone and style, incorporating supporting evidence and adhering to organizational, professional, and scholarly writing standards.
PART G WB 4043
Select and write about a job evaluation method, in 3-4 pages, using the company and job from the previous assessments.
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Introduction
Along with the job analysis and job evaluation, companies must determine how they will structure their pay and which model is the most appropriate for their company. Companies also have to consider the competitive position of their pay policy. As an HR professional, it is important to understand the different pay structures, and the process of gathering and interpreting data to determine a competitive pay position. What does it mean to be competitive and pay a salary that is not only internally equitable, but is also externally effective at attracting and retaining the appropriate labor force for your business? This assessment challenges you to consider all the issues that go into that decision making.
Instructions
Job evaluation is the process of comparing a job against other jobs within the organization to determine the appropriate pay rate. There are four primary methods of job evaluations used to set compensation levels: point factor, factor comparison, job ranking, and job classification. Historically, evaluations have mainly been internal comparisons of job worth; however, in recent years employers often prefer to use a combination of internal comparisons and external market benchmarking to obtain the most accurate data.
In this assessment, select the most appropriate job evaluation method for the organization you identified in your first two assessments.
In a 3–4 page paper:
- Analyze the advantages and disadvantages of each of the four job evaluation methods: point factor, factor comparison, job ranking, and job classification.
- Describe how an employer would use external market benchmarking during the job evaluation process.
- Analyze which job evaluation method would be the most effective for the same company you used as the focus in the previous assessments. Also consider whether you would use internal comparisons of job worth only, or you would use a combination of internal comparisons and external marketing. Justify your reasoning.
Additional Requirements
Your assessment should also meet the following requirements:
- Written communication: Written communication is free of errors that detract from the overall message.
- Formatting: One-inch margins, appropriate headers, and a title page.
- Length: 3–4 double-spaced pages.
- Font and font size: Times New Roman, 12 point.
Competencies Measured
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and scoring guide criteria:
- Competency 1: Evaluate the importance of compensation and benefits plans in attracting and retaining the most qualified talent.
- Describe how an employer would use external market benchmarking during the job evaluation process.
- Competency 4: Create a base pay and a base benefit plan.
- Analyze the advantages and disadvantages of each of the four job evaluation methods.
- Analyze which job evaluation method would be the most effective.
- Competency 5: Apply the Capella Writing Standards to support professional practice
- Convey purpose, in an appropriate tone and style, incorporating supporting evidence and adhering to organizational, professional, and scholarly writing standards.
PART H WB 4043
Review a salary structure, in 3–4 pages, for the company and job you used in the previous assessments.
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Introduction
Along with the job analysis and job evaluation, companies must determine how they will structure their pay and which model is the most appropriate for their company. Companies also have to consider the competitive position of their pay policy. As an HR professional, it is important to understand the different pay structures, and the process of gathering and interpreting data to determine a competitive pay position. What does it mean to be competitive and pay a salary that is not only internally equitable, but is also externally effective at attracting and retaining the appropriate labor force for your business? This assessment challenges you to consider all the issues that go into that decision making.
Introduction
In this assessment, select the most appropriate salary structure for an organization. Use the same company you used as the focus in the previous assessments.
In 3–4 pages:
- Analyze the advantages of each of the three primary salary structures: traditional, broadbanding, and market-based.
- Analyze the disadvantages of each of the three primary salary structures.
- Analyze which salary structure would be the most effective for the organization and justify your reasons for your selection.
Additional Requirements
Your assessment should also meet the following requirements:
- Written communication: Written communication is free of errors that detract from the overall message.
- Formatting: One-inch margins, appropriate headers, and a title page.
- Length: 3–4 double-spaced pages.
- Font and font size: Times New Roman, 12 point.
Competencies Measured
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and scoring guide criteria:
- Competency 1: Evaluate the importance of compensation and benefits plans in attracting and retaining the most qualified talent.
- Analyze the advantages of each of the three primary salary structures: traditional, broadbanding, and market-based.
- Analyze which salary structure would be the most effective for the selected organization and justify reasons for selection.
- Competency 4: Create a base pay and a base benefit plan.
- Analyze the disadvantages of each of the three primary salary structures: traditional, broadbanding, and market-based.
- Competency 5: Apply the Capella Writing Standards to support professional practice
- Convey purpose, in an appropriate tone and style, incorporating supporting evidence and adhering to organizational, professional, and scholarly writing standards
PART I WB 4043
Discuss, in 2–3 pages, FMLA, COBRA, HIPAA, and ERISA, including penalties and cases against companies for violating the acts.
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Introduction
It is very important for HR professionals, and all members of management, to be familiar with the laws and acts that govern leaves of absences, benefits, medical information and retirement and health plans. The major ones to understand include:
- Family and Medical Leave Act (FMLA): The 1993 Family and Medical Leave Act (FMLA) applies to all employers having 50 or more employees and entitles all eligible employees to receive unpaid leave up to 12 weeks per year for specified family or medical reasons.
- Consolidated Omnibus Budget Reconciliation Act (COBRA): In 1985, the Congress enacted Consolidated Omnibus Budget Reconciliation Act (COBRA) to provide current and former employees and their spouses and dependents with a temporary extension of group health insurance when coverage is lost due to qualifying events (for example, layoffs). All employers with 20 or more employees must comply with COBRA.
- Health Insurance Portability and Accountability Act (HIPAA): The 1996 Health Insurance Portability and Accountability Act (HIPAA) was designed to (1) lessen an employer's ability to deny coverage for a preexisting condition and (2) prohibit discrimination on the basis of health-related status.
- Employment Retirement Income Security Act (ERISA): The Employee Retirement Income Security Act (ERISA) is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.
Instructions
Four acts—FMLA, COBRA, HIPAA, and ERISA—passed by the Congress greatly define the arena of benefits.
For this assessment, in 2–3 pages:
- Define each act—FMLA, COBRA, HIPAA, and ERISA—briefly.
- Cite one current issue that employers are, or should be, concerned with for each act.
- Describe the violations and penalties that employers can face for violating these acts.
- Describe, for each law, an example of an actual legal case involving an organization that has violated this law.
You may reference your text, your current work environment, an interview with a colleague, a head of HR, an article from a popular business publication, or related information from the Capella University Library.
To find articles talking about these laws and the impacts on business, see the Searching Business Research Articles tab on this guide:
Suggested resources to begin with include:
See also the Legal Research library guide for help with locating legal cases.
Additional Requirements
Your assessment should also meet the following requirements:
- Written communication: Written communication is free of errors that detract from the overall message.
- Formatting: One-inch margins, appropriate headers, and a title page.
- Length: 2–3 double-spaced pages.
- Font and font size: Times New Roman, 12 point.
Competencies Measured
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and scoring guide criteria:
- Competency 2: Analyze base pay programs and the major laws and acts that govern employee pay.
- Explain briefly and accurately the federal acts of FMLA, COBRA, HIPAA, and ERISA.
- Competency 3: Analyze base benefit plans and the primary laws and acts that govern employee benefits.
- Describe, for each of the federal acts of FMLA, COBRA, HIPAA, and ERISA, one current issue with which employers are, or should be, concerned.
- Describe what, if any, penalties a company may incur for violating or for unsuccessfully challenging each of FMLA, COBRA, HIPAA, and ERISA.
- Describe, for each of the federal acts of FMLA, COBRA, HIPAA, and ERISA, an organization that has violated the act, the violation, and the penalties that were imposed.
- Competency 5: Apply the Capella Writing Standards to support professional practice
- Convey purpose, in an appropriate tone and style, incorporating supporting evidence and adhering to organizational, professional, and scholarly writing standards.
PART J WB 4043
Create a competitive pay and benefits plan, in 5-6 pages, using the same company as the one in the previous assessments.
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Introduction
Organizations need a thoughtful compensation program to remain competitive and to attract and retain top talent. Companies are having a tougher time than ever sourcing and retaining enough skilled talent to fill all of their needs. To overcome this hurdle, many organizations are focusing on building an employer brand, which includes a robust benefits package and greater incentives to reward performance.
Companies must create their overall philosophy of how they compensate their employees with their pay and benefits. A compensation philosophy is a formal statement that explains the company's position on employee compensation. It explains the why behind their pay practices and it creates a structure for consistency. Employers also use their compensation philosophy to attract, retain, and motivate employees. Companies must also develop their benefits and compensation budget. Budgeting doesn't have to be too complex, but it should be realistic and comprehensive enough to encompass all areas of an employee's total rewards.
Instructions
For this assessment, use the same company as the one in the previous assessments.
Assume you have already created a budget for your pay and benefits program.
In 5–6 pages:
- Create a compensation philosophy statement for the organization.
- Address the following questions and justify your responses using the job you selected in Assessment 2.
- Will this position be full time or part time, and exempt or non-exempt?
- What will the pay for this position be?
- Will there be incentive pay as well?
- Analyze the major laws with which your compensation program must comply.
- Describe the legally mandated benefits you will include in your benefits package. Identify the state in which this business operates and identify any specific state-mandated benefits as well.
- Describe the discretionary benefits you will include in your benefits package.
- Analyze the major laws or acts with which your benefits program must comply.
- Analyze the employer cost of benefits as a percentage of the total compensation package.
- Analyze the trends that affect the cost of benefits.
- Evaluate the effectiveness of your compensation and benefits program to attract and retain talent.
Additional Requirements
Your assessment should also meet the following requirements:
- Written communication: Written communication is free of errors that detract from the overall message.
- Formatting: One-inch margins, appropriate headers, and a title page.
- Length: 5–6 double-spaced pages.
- Font and font size: Times New Roman, 12 point.
Competencies Measured
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and scoring guide criteria:
- Competency 1: Evaluate the importance of compensation and benefits plans in attracting and retaining the most qualified talent.
- Create a compensation philosophy statement for the organization.
- Evaluate the effectiveness of a compensation and benefits program to attract and retain talent.
- Competency 2: Analyze base pay programs and the major laws and acts that govern employee pay.
- Analyze the major laws with which the compensation program must comply.
- Analyze the employer cost of benefits as a percentage of the total compensation package.
- Competency 3: Analyze base benefit plans and the primary laws and acts that govern employee benefits.
- Describe the legally mandated benefits included in a benefits package.
- Describe the discretionary benefits included in a benefits package.
- Analyze the major laws or acts with which a benefits program must comply.
- Competency 4: Create a base pay and a base benefit plan.
- Analyze the trends that affect the cost of benefits.
- Competency 5: Apply the Capella Writing Standards to support professional practice
- Convey purpose, in an appropriate tone and style, incorporating supporting evidence and adhering to organizational, professional, and scholarly writing.
PART K WB 4043
Make recommendations you think your chosen company should follow when considering benefits and compensation packages.
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Introduction
Often, the market will select a company's market position through word of mouth from current employees, former employees, or local press coverage through a best employer list. Taking a more proactive approach to managing a market position is the strategy of choice for most employers.
Tracking turnover rates, inflation, and economic indicators all play into the formula, as does a sense of the market and a company's image and reputation. The numbers and trends tell a huge story. Interpreting that story is the difference between a superior compensation plan and ineffective one.
Most would agree that a policy is effective if it meets the standard of attracting and retaining a desired staff, stays within the laws of the market, and does not wreak havoc on the bottom line. But, what of the individual? Should the employee's position be a factor in that equation? Should other outside, unsolicited opinions play a factor in the effectiveness equation?
How will you communicate your policy and standard to the employees of the organization? Will you make your message public to your consumer? These are the final questions that connect the complete package of managing compensation and benefits.
Preparation
Research any one of the top employer lists frequently posted by top news publications or industry journals, which you can search for using the Internet. Once you have found the information, complete the following:
- Read the top 25 employers on the list.
- Note how many of these employers made the list because of their compensation and/or benefits policies, and also note the specific compensation-related policies that were mentioned.
- Log which policies were mentioned.
Instructions
Based on your research about top employers, prepare an analysis of your findings in a report. In not more than two pages:
- Prepare a chart listing at least 10 of the top employers, their ranking on the list, and the compensation or benefit that was cited as a reason for being a top employer.
- Review your list of employers. Can you make any determination from that list? Is there a pattern that makes for a top employer in compensation and benefits? What characteristics do you view as being more important than others?
- Conclude with a recommendation for the company's HR manager. Explain what standards you think are critical to becoming recognized as a top employer with excellent compensation and benefits policies. In other words, create the standard you think your company should follow. Justify your recommendations.
Additional Requirements
Your assessment should also meet the following requirements:
- Length: Not more than two pages.
- APA format: Use current APA style in citing and referencing your sources.
Competencies Measured
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and scoring guide criteria:
- Competency 1: Evaluate the importance of compensation and benefits plans in attracting and retaining the most qualified talent.
- Prioritize top employers based upon their compensation and benefits.
- Analyze characteristics of top employers for compensation and benefits.
- Competency 4: Create a base pay and a base benefit plan.
- Explain recommendations for a company to follow to achieve excellence in compensation and benefits.
- Competency 5: Apply the Capella Writing Standards to support professional practice
- Convey purpose, in an appropriate tone and style, incorporating supporting evidence and adhering to organizational, professional, and scholarly writing standards.