FASTCAT PHASE II



FASTCAT PHASE IIMNGT 433-Compensation & Benefits4/22/2014Logical Thinkers Consulting CompanyDamian MalagariKerry AhearnMelissa HeklNgoanPhanChau TranTable of Contents TOC \o "1-3" \h \z \u EXECUTIVE SUMMARY PAGEREF _Toc385960498 \h 3RECOMMENDED STRATEGY FOR EXTERNAL COMPETITIVENESS PAGEREF _Toc385960499 \h 4Best Alternatives for FastCat PAGEREF _Toc385960500 \h 4Pay Level and Mix of Forms PAGEREF _Toc385960501 \h 4Integrating the External and Internal Structure PAGEREF _Toc385960502 \h 5Preliminary Ideas PAGEREF _Toc385960503 \h 5SURVEY DESIGN OF TOTAL COMPENSATION OF FASTCAT’S COMPETITORS PAGEREF _Toc385960504 \h 6Selecting Benchmarks and Matching With FastCat Jobs PAGEREF _Toc385960505 \h 6Selecting Competitors in FastCat’s External Market PAGEREF _Toc385960506 \h 6Analyzing the Data: Deciding What Forms to Compare PAGEREF _Toc385960507 \h 7Analyzing the Data: Adjusting for Aging PAGEREF _Toc385960508 \h 11Evaluating the Regression Line and the Fit Between FastCat and the Market PAGEREF _Toc385960509 \h 15FASTCAT’S PAY POLICY LINE PAGEREF _Toc385960510 \h 19INTEGRATING INTERNAL AND EXTERNAL STRUCTURES PAGEREF _Toc385960511 \h 20Bands and Zones PAGEREF _Toc385960512 \h 20Overlapping PAGEREF _Toc385960513 \h 21EVALUATING THE RESULTS PAGEREF _Toc385960514 \h 21Description of Analysis PAGEREF _Toc385960515 \h 24FastCats’ Strategy and Rationale to Lag Pay Levels PAGEREF _Toc385960516 \h 25EXECUTIVE SUMMARYOur Proposal for FastCat’s compensation system in Phase II focuses on the base pay as well as providing incentives. In order to maintain its competitiveness in the industry, FastCat should lag the market. They must ensure their pay structure is strategically differentiated within the marketplace. The appropriate pay structure and compensation plan will help FastCat strengthen employee retention and increase productivity through incentives, rewarding performance, and employee engagement. FastCat’s success will be determined by its ability to balance the pay structure with firm profitability. We recommend FastCat use bands and zones because of the goal established in Phase I to be a more egalitarian organization.RECOMMENDED STRATEGY FOR EXTERNAL COMPETITIVENESSBest Alternatives for FastCatWhen determining a new compensation strategy for FastCat, we decided the best option would be a job-based structure because it aligns most appropriately with FastCats’ new mission towards “A Partnership for Success.” ?Phase II is all about focusing on our internal pay structure and measuring the similarities in comparison to our external competitors. As discussed earlier, the easiest way to figure out a pay structure is to compare our pay structure to outside companies. We will compare our base pay to what other companies in the industry pay for similar job positions. ???Pay Level and Mix of FormsFastCat needs to cut some of its costs. We recommend that the company lag the market in order to save money. Since FastCat is unable to meet the market in base salaries, the organization should consider offering bonuses or non-monetary benefits for employees. These will work as incentives for employees to work harder as well as help with employee retention.The compensation plan will be a mix of base salary, bonuses, and benefits. FastCat is a highly innovative company and should pay for performance. Bonuses should be offered for exemplary performance where employees show an opportunistic mindset, imagination, and initiative to create value from the given resources. This will keep employees motivated and improve FastCat processes.Integrating the External and Internal StructureIntegrating FastCats’ pay structure with its external competitors would be best done by implementing Bands and Zones instead of the alternative of Grades and Ranges. We chose this method since the focus is on a more egalitarian structure. FastCat will be able to control compensation while allowing for opportunities to reward employees for individual performance. Banding attempts to collapse hierarchy into fewer salary ranges with wider range spreads. ??Preliminary IdeasThe main objective when looking at external competitiveness is to control cost, increase revenue, and attract and retain employees. FastCat’s ratio of revenue to labor costs has been decreasing for the past two years and our job is to turn that around. We recommend to lag the market so that FastCat incurs less labor costs each year. In addition, we will add incentives, non-monetary benefits, bonuses, and stock options in order to increase productivity and motivate employees to be as innovative and creative as they can. FastCat’s mission statement focuses on innovation and teamwork and we believe the incentives we suggest will offer enough to retain and motivate FastCat’s valued employees.SURVEY DESIGN OF TOTAL COMPENSATION OF FASTCAT’S COMPETITORSSelecting Benchmarks and Matching With FastCat JobsWhen selecting the benchmark jobs we decided to compare jobs that are most similar to FastCat’s. We used three from each job category (support, managerial, technical, and marketing), which were the highest, middle, and lowest positions. After choosing these, we read each job description included in the survey. From this, we matched each of the 12 FastCat jobs by focusing on the tasks included in the descriptions, the skills they should possess to complete these tasks, and the education and experience typically required. Table 1 shows the FastCat jobs with their point values and the benchmark jobs we felt were most similar.Table 1: FastCat BenchmarksFastCat JobPoint ValueSurvey JobSenior Fellow400Engineering Manager 3Software User Interface Architect370Engineer 4Software Developer355Engineer 3Graphics Designer340Marketing Manager 1Administrative Leader340Office Support 6Software Solutions Consultant295Marketer 4Quality Assurance Analyst265Technician 4Green Guru260Office Support 5Project Support Assistant215Office Support 3Marketing Support200Marketer 1Technician180Technician 2Administrative Aid145Office Support 2Selecting Competitors in FastCat’s External MarketFastCat is a software company specialized in providing healthcare support to small and medium sized medical facilities. Its objective is to “provide the right information to the right people at the right time to ensure the right care”. Healthcare Support is an industry with medium to high entry barriers and rivalry and has around 150 employees, which is considered a small firm. FastCat’s goal is to become a well known software company. For these reasons, we checked the 60 companies included in the survey to conduct the comparison. We chose the companies that were most similar to FastCat, which included both software and computer hardware companies that develop medical software, as well as web-based IT solutions and B2B software that support the healthcare field. Table 2 shows the 14 companies we chose to compare to FastCat along with their current compensation features.Table 2: External CompetitorsCompany #IndustrySizeBase/Total CompBenefits/BaseStock/BaseBonus/Base4SoftwareMedium87%14%0%0%10SoftwareMedium87%14%1%0%14SoftwareMedium80%20%0%5%23SoftwareSmall80%80%13%2%25SoftwareMedium83%83%6%3%33SoftwareMedium72%8%2012%43Cptr/hdwMedium83%13%3%3%46SoftwareSmall83%12%7%4%47SoftwareMedium79%14%5%8%48Cptr/hdwSmall80%15%4%5%53SoftwareSmall62%10%47%4%54SoftwareSmall78%13%15%0%55SoftwareSmall60%12%48%7%60SoftwareMedium85%10%3%4%Analyzing the Data: Deciding What Forms to CompareWhen matching the external competitors data to FastCats’ compensation, we were able to determine which job positions to use as benchmarks by analyzing the mean salary for each position. This data includes base salary, total cash, total compensation, bonuses, and stock options. Our data is presented in Tables 3-6 and represents salary information for small and medium software and computer hardware companies. We used the mean base salary as our compensation metric because we wanted each salary to be evenly weighted instead of weighting the salaries by the size of the company.Table 3: Software - MediumBenchmark JobFastCat JobBase SalaryTotal CashTotal CompBonusStock OptionsEngineering Manager 3Senior Fellow$153,522.09$175,220.79$229,232.34$24,365.16$46,236.00Engineer 4Software User Interface Architect$96,012.88$99,807.45$115,218.05$8,673.36$15,531.61Engineer 3Software Developer$82,791.43$85,551.47$98,279.20$6,424.55$7,885.31Marketing Manager 1Graphics Designer$99,952.94$104,980.62$120,156.35$6,523.70$6,750.94Office Support 6Administrative Leader$51,589.21$53,366.31$61,498.68$2,733.76$$557.89Marketer 4Software Solutions Consultant$96,992.41$103,435.67$115,111.44$9,661.38$3,815.00Technician 4Quality Assurance Analyst$43,837.33$46,167.72$54,983.35$3,435.48$2,448.72Office Support 5Green Guru$48,769.18$49,648.94$58,300.74$2,396.60$485.00Office Support 3Project Support Assistant$38,367.95$39,103.62$46,103.23$1,002.18$511.11Marketer 1Marketing Support$53,755.43$58,034.93$65,803.57$8,559.00$4,100.00Technician 2Technician$29,805.35$30,859.57$37,496.81$1,464.40$2,122.22Office Support 2Administrative Aid$31,442.47$31,972.52$38,994.04$766.52$1,005.88Table 4: Software - SmallBenchmark JobFastCat JobBase SalaryTotal CashTotal CompBonusStock OptionsEngineering Manager 3Senior Fellow$170,286.63$191,412.63$366,385.77$42,252.00$324,600.00Engineer 4Software User Interface Architect$106,939.95$114,385.07$146,662.66$15,795.38$45,935.71Engineer 3Software Developer$87,139.29$90,512.15$110,863.70$8,086.50$25,057.14Marketing Manager 1Graphics Designer$124,124.20$133,854.87$225,786.82$9,730.67$117,550.00Office Support 6Administrative Leader$54,582.08$55,242.08$87,165.51$1,320.00$21,750.00Marketer 4Software Solutions Consultant$120,734.86$121,499.98$145,832.83$2,524.90$15,378.57Technician 4Quality Assurance Analyst$41,591.85$43,380.19$56,715.36$2,682.50$16,300.00Office Support 5Green Guru$52,240.37$52,240.37$61,389.68None$550.00Office Support 3Project Support Assistant$45,674.85$46,263.85$53,558.97$589.00NoneMarketer 1Marketing SupportN/AN/AN/AN/AN/ATechnician 2Technician$36,137.50$36,509.25$42,793.34$743.50NoneOffice Support 2Administrative Aid$39,117.00$39,557.88$46,959.11$543.253,600.00Table 5: Computer Hardware - MediumBenchmark JobFastCat JobBase SalaryTotal CashTotal CompBonusStock OptionsEngineering Manager 3Senior FellowN/AN/AN/AN/AN/AEngineer 4Software User Interface Architect$102,802.97$106,771.45$118,437.86$3,968.48NoneEngineer 3Software DeveloperN/AN/AN/AN/AN/AMarketing Manager 1Graphics Designer$115,909.87$127,399.47$150,385.05$14,362.00$55,300.00Office Support 6Administrative LeaderN/AN/AN/AN/AN/AMarketer 4Software Solutions ConsultantN/AN/AN/AN/AN/ATechnician 4Quality Assurance Analyst$46,421.20$48,575.77$58,492.36$2,154.57$4,900.00Office Support 5Green Guru$62,445.60$66,617.10$82,823.29$4,171.50$4,000.00Office Support 3Project Support AssistantN/AN/AN/AN/AN/AMarketer 1Marketing Support$70,898.87$75,020.72$83,882.18$4,121.86NoneTechnician 2TechnicianN/AN/AN/AN/AN/AOffice Support 2Administrative AidN/AN/AN/AN/AN/ATable 6: Computer Hardware - SmallBenchmark JobFastCat JobBase SalaryTotal CashTotal CompBonusStock OptionsEngineering Manager 3Senior FellowN/AN/AN/AN/AN/AEngineer 4Software User Interface Architect$81,958.13$88,935.04$105,108.20$6,976.92$9,433.33Engineer 3Software Developer$69,409.59$74,428.47$90,635.77$5,018.88$6,742.86Marketing Manager 1Graphics DesignerN/AN/AN/AN/AN/AOffice Support 6Administrative Leader$50,231.13$50,865.38$58,062.88$634.25$500.00Marketer 4Software Solutions ConsultantN/AN/AN/AN/AN/ATechnician 4Quality Assurance AnalystN/AN/AN/AN/AN/AOffice Support 5Green GuruN/AN/AN/AN/AN/AOffice Support 3Project Support Assistant$39,059.48$39,558.98$45,956.06$499.50NoneMarketer 1Marketing SupportN/AN/AN/AN/AN/ATechnician 2TechnicianN/AN/AN/AN/AN/AOffice Support 2Administrative Aid$32,628.18$33,048.78$38,879.30$420.60NoneAnalyzing the Data: Adjusting for AgingTables 3-6 above show salary data for the past six months. In order to create a new pay structure system for FastCat to use in the future, we aged our data to determine what salary figures would look like down the road in comparison to our external competitors. We decided to age our data 5% because according to the compensation textbook, on average, the data should be increased by 5% every year to accurately show aging statistics. Tables 7-10 display our aged data for software and computer/hardware small and medium companies. After analyzing our results with a percentage increase, the base salaries range anywhere from a $2,500 to over $6,000 increase.Table 7: Software - Medium AgedBenchmark JobFastCat JobBase SalaryTotal CashTotal CompBonusStock OptionsEngineering Manager 3Senior Fellow$161,198.19$182,896.89$236,908.44$24,365.16$46,236.00Engineer 4Software User Interface Architect$100,813.53$104,608.09$120,018.69$8,673.36$15,531.61Engineer 3Software Developer$86,931.00$69,691.04$102,418.77$6,424.55$7,885.31Marketing Manager 1Graphics Designer$104,950.59$109,978.27$125,154.00$6,523.70$6,750.94Office Support 6Administrative Leader$54,168.67$55,945.77$64,078.14$2,733.76$557.89Marketer 4Software Solutions Consultant$101,842.03$108,285.29$119,961.06$9,661.38$3,815.00Technician 4Quality Assurance Analyst$46,029.19$48,359.58$57,175.22$3,435.48$2,448.72Office Support 5Green Guru$51,207.64$52,087.40$60,739.20$2,396.60$485.00Office Support 3Project Support Assistant$40,286.35$41,022.02$48,021.62$1,002.18$511.11Marketer 1Marketing Support$56,443.21$60,722.71$68,491.35$8,559.00$4,100.00Technician 2Technician$31,295.62$32,349.84$38,987.07$1,464.40$2,122.22Office Support 2Administrative Aid$33,014.60$33,544.64$40,566.16$766.52$1,005.88Table 8: Software - Small AgedBenchmark JobFastCat JobBase SalaryTotal CashTotal CompBonusStock OptionsEngineering Manager 3Senior Fellow178,800.96199,926.96374,900.1042,252.00324,600.00Engineer 4Software User Interface Architect112,286.95119,732.07152,009.6515,795.3845,935.71Engineer 3Software Developer91,496.2594,869.11115,220.678,086.5025,057.14Marketing Manager 1Graphics Designer$130,330.41$140,061.08$231,993.03$9,730.67$117,550.00Office Support 6Administrative Leader$57,311.18$57,971.18$89,894.61$1,320.00$21,750.00Marketer 4Software Solutions Consultant$126,771.60$127,536.72$151,869.58$2,524.90$15,378.57Technician 4Quality Assurance Analyst$43,671.45$45,459.78$58,794.95$2,682.50$16,300.00Office Support 5Green Guru$54,852.39$54,852.39$64,001.69None$550.00Office Support 3Project Support Assistant$47,958.59$48,547.59$55,842.71$589.00NoneMarketer 1Marketing SupportN/AN/AN/AN/AN/ATechnician 2Technician$37,944.38$38,316.13$44,600.22$743.50NoneOffice Support 2Administrative Aid$41,072.85$41,513.73$48,914.96$543.25$3,600.00Table 9: Computer Hardware - Medium AgedBenchmark JobFastCat JobBase SalaryTotal CashTotal CompBonusStock OptionsEngineering Manager 3Senior FellowN/AN/AN/AN/AN/AEngineer 4Software User Interface Architect$107,943.12$111,911.60$123,578.00$3,968.48N/AEngineer 3Software DeveloperN/AN/AN/AN/AN/AMarketing Manager 1Graphics Designer$121,705.36$133,194.96$156,180.54$14,362.00$55,300.00Office Support 6Administrative LeaderN/AN/AN/AN/AN/AMarketer 4Software Solutions ConsultantN/AN/AN/AN/AN/ATechnician 4Quality Assurance Analyst$48,742.26$50,896.83$60,813.42$2,154.57$4,900.00Office Support 5Green Guru$65,567.88$69,793.38$85,945.57$4,171.50$4,000Office Support 3Project Support AssistantN/AN/AN/AN/AN/AMarketer 1Marketing Support$74,433.81$78,565.67$87,427.12$4,121.86N/ATechnician 2TechnicianN/AN/AN/AN/AN/AOffice Support 2Administrative AidN/AN/AN/AN/AN/ATable 10: Computer Hardware - Small AgedBenchmark JobFastCat JobBase SalaryTotal CashTotal CompBonusStock OptionsEngineering Manager 3Senior FellowN/AN/AN/AN/AN/AEngineer 4Software User Interface Architect$86,056.03$93,032.95$109,206.10$6,976.92$9,433.33Engineer 3Software Developer$72,880.07$77,898.95$94,106.25$5,018.88$6,742.86Marketing Manager 1Graphics DesignerN/AN/AN/AN/AN/AOffice Support 6Administrative Leader$52,742.68$53,376.93$60,574.43$634.25$500.00Marketer 4Software Solutions ConsultantN/AN/AN/AN/AN/ATechnician 4Quality Assurance AnalystN/AN/AN/AN/AN/AOffice Support 5Green GuruN/AN/AN/AN/AN/AOffice Support 3Project Support Assistant$41,012.45$41,511.95$47,909.03$499.50N/AMarketer 1Marketing SupportN/AN/AN/AN/AN/ATechnician 2TechnicianN/AN/AN/AN/AN/AOffice Support 2Administrative Aid$34,259.59$34,680.19$40,510.71$420.60$34,259.59Evaluating the Regression Line and the Fit Between FastCat and the MarketOnce we completed Tables 7-10, we found regression lines for each. For medium software companies (shown below in Figure 1), the graph is expressed as y=389.41x+(-36848.68). As a result, for every job evaluation point added the mean base wage increases by $389.41, and then $36,848.68 is subtracted. The R-Squared for this graph is 0.676, meaning the accuracy is fairly low. Part of the reason for this may be a result of the inaccurately matched FastCat jobs to the benchmark jobs. Shown in Table 7, some positions such as the Software Solutions Consultant have lower JE points but the data shows they should be paid higher. Either our evaluation of JE points in Phase I were inaccurate or there may be a better match for the FastCat job. This goes for the other regression tables R-Squared as well. Figure 1: Regression Graph - Medium SoftwareFigure 2 shows the regression graph for the small software companies. This graph is expressed by the equation y=445.01x+(-44180.78). The R-Squared for this graph is even lower than software medium companies at 0.604. Figure 2: Regression Graph - Small SoftwareFigure 3 shows the regression graph for medium computer hardware companies. This graph is expressed y=329.56x+(-10905.09) with an R-Squared of 0.547. This is the least accurate regression that we found. Figure 3: Regression Graph - Medium HardwareFigure 4 shown below is for the small computer hardware companies regression. This graph is expressed y=192.93x+2402.76. This has the most accurate R-Squared of 0.782. Although this is the highest R-Squared we decided not to use this as the benchmark because as shown in Table 10, it only has data for a few benchmark positions and we do not feel it is enough to base our entire pay structure off of. Figure 4: Regression Graph - Small Hardware22860083820FASTCAT’S PAY POLICY LINEFigure 5 shows FastCats’ two different pay policy lines. The green dotted line is lagging the market by 5% and the black dotted line is leading the market by 5%. The red line illustrates the average pay in the market. We decided to use the green dotted line as our pay policy because we plan to lag the market in salary. We chose this option because FastCat needs to focus on cutting labor costs and raising production. We did not want to lag more than 5% because we felt that the employees would not be motivated if it were any lower. Since we are lagging the market, we plan to give incentives for innovation and high productivity in order to retain our valued employees. Figure 5: FastCat’s Pay Policy Line - Small Software CompaniesINTEGRATING INTERNAL AND EXTERNAL STRUCTURESBands and ZonesFastCat should lag the market by 5%. Integrating the pay structure with its external competitors should be done using bands and zones which are successful in a more flexible organizations. Although using grades is an easier system to administer, using broad banding will allow the organization to take advantage of flexibility without increasing labor costs.A structure with bands and zones also encompasses pay ranges for specific categories of jobs based on their individual responsibilities and tasks. ?For example, for all entry level positions we would consider and set a specific range of pay, and for a job with increased responsibility comes a greater pay band. ?The advantage of choosing this structure allows FastCat to manage and control compensation in the organization while leaving room for rewarding individual performance.OverlappingWhen one band’s maximum salary overlaps the next band’s minimum salary, the movement from the first band to the second band has to make sense. We need to be sure that if the top paid person in the first band is paid more than the minimum paid person in the next band, they actually deserve to be paid more because of their job requirements.EVALUATING THE RESULTSBelow (Tables 11-14) are all the options we considered before choosing to use the small software companies as the benchmark. We took each of the equations that were found in Figures 1-4 and put in each of the 12 FastCat job evaluation points to find the mean base wage of each position.Table 11: Software - MediumBenchmark JobFastCat JobJE PointsMean Base WageEngineering Manager 1Senior Fellow400$118,915.32Engineer 4Software User Interface Architect370$107,233.02Engineer 3Software Developer355$101,391.87Marketing Manager 1Graphics Designer340$95,550.72Office Support 6Administrative Leader340$95,550.72Marketer 4Software Solutions Consultant295$78,027.27Technician 4Quality Assurance Analyst265$66,344.97Office Support 5Green Guru260$64,397.92Office Support 3Project Support Assistant215$46,874.47Marketer 1Marketing Support200$41,033.32Technician 2Technician180$33,245.12Office Support 2Administrative Aid145$19,615.77Table 12: Software - SmallBenchmark JobFastCat JobJE PointsMean Base WageEngineering Manager 1Senior Fellow400$133,823.2Engineer 4Software User Interface Architect370$120,472.9Engineer 3Software Developer355$113,797.8Marketing Manager 1Graphics Designer340$107,122.6Office Support 6Administrative Leader340$107,122.6Marketer 4Software Solutions Consultant295$87,097.17Technician 4Quality Assurance Analyst265$73,746.87Office Support 5Green Guru260$71,521.82Office Support 3Project Support Assistant215$51,496.37Marketer 1Marketing Support200$44,821.22Technician 2Technician180$35,921.02Office Support 2Administrative Aid145$20,345.67Table 13: Computer Hardware - MediumBenchmark JobFastCat JobJE PointsMean Base WageEngineering Manager 1Senior Fellow400$120,918.91Engineer 4Software User Interface Architect370$111,032.11Engineer 3Software Developer355$106,088.71Marketing Manager 1GraphicsDesigner340$101,145.31Office Support 6AdministrativeLeader340$101,145.31Marketer 4Software Solutions Consultant295$86,315.11Technician 4Quality Assurance Analyst265$76,428.31Office Support 5Green Guru260$74,780.51Office Support 3Project Support Assistant215$59,950.31Marketer 1Marketing Support200$55,006.91Technician 2Technician180$48,415.71Office Support 2Administrative Aid145$36,881.11Table 14: Computer Hardware - SmallBenchmark JobFastCat JobJE PointsMean Base WageEngineering Manager 1Senior Fellow400$79,574.76Engineer 4Software User Interface Architect370$73,786.86Engineer 3Software Developer355$70,892.91Marketing Manager 1Graphics Designer340$67,998.96Office Support 6Administrative Leader340$67,998.96Marketer 4Software Solutions Consultant295$59,317.11Technician 4Quality Assurance Analyst265$53,529.21Office Support 5Green Guru260$52,564.56Office Support 3Project Support Assistant215$43,882.71Marketer 1Marketing Support200$40,988.76Technician 2Technician180$37,130.16Office Support 2Administrative Aid145$30,377.61Description of AnalysisTable 15 below displays our pay structure. ?After comparing all the companies, we decided to choose small software companies. Table 1 shows what jobs were matched. We matched the job descriptions in the survey to the FastCat job descriptions. We analyzed several forms of pay including base salary, total cash, total compensation, bonuses, and stock options. We used the mean as the compensation metric in order to compare the pay more accurately. Based on our analysis, some of FastCat’s competitors will be paying their employees higher because we chose to lag the market.We initially wanted to lag the market in all jobs by 5%. We chose the line that lags the average market line because of FastCat’s goal to keep low costs. However, using this line will make some specific jobs’ pay at FastCat lead the market because the benchmark jobs were well below the average. FastCat will be able to keep their costs low but maintain employee retention through bonuses, benefits, and other incentives. Bonuses allow the company to make a one time pay to an employee which is not guaranteed in their salary every year. ?With these strategies, we believe FastCat will be capable of maintaining their position in the market.Table 15: A Picture of our Pay StructureCurrent JobJE PointsAverage Pay Rate5% Lag Pay RateSenior Fellow400$133,823.2$127,450.67Visionary Champion385$127,148.1$121,093.40Project Leader385$127,148.07$121,093.40Software User Interface Architect370$120,472.9$114,736.10Client Account Leader360$116,022.82$110,497.92Software Developer355$113,797.8$108,378.86Graphics Designer340$107,122.6$102,021.52Administrative Leader340$107,122.6$102,021.52Implementation Consultant335$ 104,897.57$99,902.45Senior Quality Assurance Analyst325$ 100,447.47$95,664.26Quality Assurance Analyst A305$91,547.27$87,187.88Software Solutions Consultant295$87,097.17$82,949.69Quality Assurance Analyst265$73,746.87$70,235.11Green Guru260$71,521.82$68,116.02Usability Engineer255$69,296.77$65,996.92User Interface Designer245$64,846.67$61,758.73Marketing Service Representative245$64,846.67$61,758.73Training Assistant245$64,846.67$61,758.73Project Support Assistant215$51,496.37$49,044.16Marketing Support200$44,821.22$42,686.88Technician180$35,921.02$34,210.50Administrative Assistant II170$31,470.92$29,972.30Travel Coordinator160$27,020.82$25,734.11Administrative Aid145$20,345.67$19,376.83FastCats’ Strategy and Rationale to Lag Pay LevelsSince our strategy focuses on keeping costs low, we suggest FastCat offer other incentives to increase productivity on top of the salaries. Some of the options include, bonuses, non-monetary benefits, and stock options. For example, stock options can be helpful because employees who own stock may be motivated to be more productive in order to keep the stock price rising.The objectives set in Phase I focus on an internally aligned job-based pay structure including:· ?Promoting from within· ?Demand for greater efficiency and increased productivity· ?Improving employee relationships· ?Improving workflow between different departments· ?Constantly highlight creative ideas· ?Stress the importance of communication and employee engagementFastCat recently switched from a hierarchal structure to a more flat internal organization that focuses on the involvement of its employees. “A Partnership for Success” is FastCat’s mission. It mainly focuses on customer and employee satisfaction by providing value and encouraging innovation. The compensation system should be a source of sustainable competitive advantage in order to be successful in the industry. Our proposed internal structure integrates creativity and teamwork.FastCat’s new approach to exceeding consumer expectations will need to involve introducing new offerings to existing customers, reaching out to new healthcare participants, and expanding FastCat globally. This compensation plan must motivate employees to increase productivity and keep them committed to achieving their overall mission towards success. Combining these values with the suggested pay structure, we believe FastCat will have the tools for success. ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download