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As the compensation analyst for the relatively new Omega Corporation, you are to price a pay structure. Information is provided…

As the compensation analyst for the relatively new Omega Corporation, you are to price a pay structure. Information is provided to you below and includes the points for each job (which was obtained through a job evaluation) and salary rate midpoint data (obtained through a salary survey) for each benchmark job. You are to have equal percentage progressions between midpoint rates and set the rate RANGE at 10% on each side of the midpoint. Make sure you incorporate this information into your answer. Do the following: (If there is more than one pay structure, you are required to only develop the pay structure with the most jobs). Hint: Please do not confuse structures with grades. 1. How many pay structures are required? DEMONSTRATE (with a plot) AND EXPLAIN WHY. If you determine there is more than one structure, only use the one structure with the most populous jobs. 2. Determine the number of grades and indicate which jobs are in which grade. Discuss how you determined the number of grades. 3. Determine the evaluation point ranges for EACH of the grades. Discuss what the evaluation points represent. 4. Determine the midpoint pay rate for EACH grade. Discuss what the midpoint pay rate for each grade represents. 5. Determine the high/low ratio and the midpoint to midpoint percentage progression. Discuss the meaning for each 6. Determine the pay rate range for EACH grade. What purpose does the pay rate range serve (i.e., why not just pay everyone the midpoint in that grade?)? 7. Draw and calculate the grade overlap BETWEEN EACH ADJACENT GRADES. Discuss what the overlaps represent. 8. DISCUSS THOROUGHLY how you would set up steps within the grades – you may have to do research for this. 9. Specify and DISCUSS THOROUGHLY the policies necessary to administer the pay structure – you may have to do research for this. Compensation Data for Omega Corp. Job Evaluation Points Salary Data A 115 $10.15 B 125 $10.30 C 155 $11.00 D 155 $11.15 E 160 $11.40 F 170 $11.35 G 210 $12.00 H 225 $12.15 I 230 $12.25 J 285 $13.25 K 295 $13.40 L 325 $14.10 M 330 $17.05 N 375 $19.85 O 350 $14.95 P 400 $16.00 Q 425 $16.25 R 465 $16.50 S 540 $18.40 T 545 $25.00 U 555 $18.55 V 575 $14.50 W 580 $19.25 X 620 $20.80 Y 625 $21.00 Z 640 $22.00

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