RUNNING HEAD: Designing a Pay Structure 1
Real Pay Structure’s
Joshua Hopkins
Kaplan University
September 4th 2015
Real Pay Structure 2
Real Pay Structure
Task A: Create a complete job description for the Benefits Manager position using O*NET.
Job Title: Benefits Manager
Job Summary: Responsible for administration of employee benefits in all company operations.
Member will provide special guidance and assistance to all locations on various employee
benefit plans. Surveys industry and/or community to determine company's competitive position
in employee benefits. At any given point develop, recommends, and installs approved, new, or
modified plans and employee benefit policies, and supervises administration of existing plans
already set into place.
Job Tasks:
1. Administers employee benefits programs such as retirement plans; basic hospital,
medical, surgical, and major medical plans; term life insurance plans; temporary
disability programs; and accidental death policies.
2. Will be responsible for developing any and all specifications for new plans or modifies
existing plans to maintain company's competitive position in labor market, as well as
obtain uniform benefit package for all company locations. Attention to detail is a critical
portion for employee to process as well.
3. Will develop census data and solicits insurance companies for quotations. Evaluates
quotations and makes recommendations to management. Produces company cost
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information for new plans and makes recommendations to management concerning
sharing of cost between employer and employee.
4. Helps install only approved new plans and changes by preparing announcement material,
booklets, and other media for communicating new plans to employees. Revises and
reissues all communications material on benefits from time to time. Helps conduct
employee meetings and arranges for enrollment of employees in optional plans.
Facilitates employee benefit seminars for local personnel. Advises and counsels
management and employees on existing benefits. Will also assist with preparing and
executing with legal consultation, as well as benefit documentation; such as original and
amended plan texts, benefit agreements and insurance policies. Furthermore assists in
development of company bargaining proposals for employee benefits and analyzes union
benefits demands. Obtains and prepares cost data for company and union proposals and
final settlements (SHRM 2014).
5. Assures company compliance with provisions of Employee Retirement Income Security
Act. Supervises preparation of reports and applications required by law to be filed with
federal and state agencies, such as Internal Revenue Service, Department of Labor,
insurance commissioners, and other regulatory agencies. Reviews and analyzes changes
to state and federal laws pertaining to benefits, and reports necessary or suggested
changes to management. Coordinates company benefits, with government sponsored
programs. Helps assure that all existing and new benefit programs are adaptable to
standardized computer and reporting systems. Develops benefit information and
statistical and census data for actuaries, insurance carriers, and management.
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6. Handles benefit inquiries and complaints to ensure quick, equitable, courteous resolution.
Maintains contact in person, and by phone or mail, with hospitals, physicians, insurance
companies, employees, and beneficiaries to facilitate proper and complete utilization of
benefits for all employees. Also supervises maintenance of human resources records.
Supervises maintenance of enrollment, application, and claims records for all benefit
plans.
Education and Work Experience
1. A bachelor's degree and five (5) years experience in Benefits Administration. OR
2. A master's degree in Human Resource Management and four (4) years experience in
Benefits Administration. OR
Any appropriate combination of education and or experience will do for here (SHRM, 2015).
Task B: Calculate the job evaluation points for the administrative assistant, payroll
assistant, operational analyst, and benefits manager jobs. Provide a rationale for assigning
specific degrees to the various jobs.
Administrative Assistant
Degree (1,2,3,4) Weight Points
Skill (50%)
-Education Level 2 25% 50
-Degree of Technical 2 25% 50
Skills
Responsibility (30%)
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-Scope of Control 1 10% 10
-Impact of Job 2 20% 40
Effort (20%)
-Degree of Problem 1 10% 10
Solving
-Task Complexity 1 10% 10
170 Points
Payroll Assistant
Degree (1,2,3,4) Weight Points
Skill (50%)
-Education Level 3 25% 75
-Degree of Technical 3 25% 75
Skills
Responsibility (30%)
-Scope of Control 1 10% 10
-Impact of Job 3 20% 60
Effort (20%)
-Degree of Problem 3 10% 30
Solving
-Task Complexity 3 10% 30
280 Points
Operations Analyst
Degree (1,2,3,4) Weight Points
Skill (50%)
-Education Level 3 25% 75
-Degree of Technical 2 25% 50
Skills
Responsibility (30%)
-Scope of Control 3 10% 30
-Impact of Job 3 20% 60
Effort (20%)
-Degree of Problem 3 10% 30
Solving
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-Task Complexity 2 10% 20
265 Points
Benefits Manager
Degree (1,2,3,4) Weight Points
Skill (50%)
-Education Level 3 25% 75
-Degree of Technical 3 25% 75
Skills
Responsibility (30%)
-Scope of Control 3 10% 20
-Impact of Job 3 20% 60
Effort (20%)
-Degree of Problem 3 10% 30
Solving
-Task Complexity 3 10% 30
290 Points
Task C: If there were any outliers (i.e., extreme data points) in these data, what would you
recommend doing with them? Personally in my opinion, I would keep the outlier just in case it
becomes significant. It will show up on the graph and can be noted at that time anyways (Wendt
2014).
Front Desk Reception:
Sum(1*21000,2*22000,1*18000,2*21000,2*18500,1*17500)/sum(1,2,1,2,2,1)= $19,944
average base salary
Administrative Assistant:
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Sum(4*25000,4*31000,3*30000,5*33000,4*29000,4*28000)/sum(4,4,3,5,4,4)=$29,458
average base salary
Operations Analyst:
Sum(2*55000,4*57000,3*56000,5*58500,3*59000,3*54000)/sum(2,4,3,5,3,3)=$56,875
average base salary
Payroll Assistant:
Sum(2*35000,3*34000,1*35000,3*35000,2*36000,2*29000)/sum(2,3,1,3,2,2)=$58,013
average base salary
Benefits Manager:
Sum(1*62000,2*61500,1*60000,3*64000,2*63000,1*66000)/sum(1,2,1,3,2,1)=$62,300
average base salary
SUMMARY
OUTPUT
Regression Statistics
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Multiple R 0.996938
R Square 0.993885
Adjusted R Square 0.991847
Standard Error 1735.989
Observations 5
ANOVA
Significanc
df SS MS F eF
Regression 1 1.47E+09 1.47E+09 487.598 0.000203
Residual 3 9040977 3013659
Total 4 1.48E+09
Coefficient Standard Upper Lower Upper
s Error t Stat P-value Lower 95% 95% 95.0% 95.0%
-
Intercept -11677.8 2695.371 -4.33254 0.02268 -20255.7 -3099.92 -20255.7 3099.91856
Job Evaluation 22.0816
Points 253.3146 11.47174 2 0.000203 216.8064 289.8228 216.8064 289.822827
Task D: Conduct a simple regression in Excel to create a market pay line by entering the
job evaluation points (on the x axis) and the respective weighted average market base pay
(on the Y axis) for each benchmark job.
Equation for market pay line: y=253.31x(11678)
W 70000
e
i 60000
g f(x) = 253.31x - 11677.79
h R² = 0.99
t 50000
e
d 40000
M 30000
e
a Linear ()
n 20000
S 10000
a
l 0
a
r 100 120 140 160 180 200 220 240 260 280 300
y Job Evaluation Points
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Task E: What is your R squared (variance explained)? Is it sufficient to proceed? The R
square value is 0.986; as a result it is sufficient to proceed.
Task F: Calculate the predicted base pay for each benchmark job.
Slope J.E. Point Intercept Predicted=(slope*JE)
+Intercept
Receptionist 238.47 120 (6471.50) 22144.90
Admin Assistant 238.47 135 (6471.50) 25721.95
Payroll Assistant 238.47 175 (6471.50) 35260.75
Ops Analyst 238.47 265 (6471.50) 56723.05
Benefits Manager 238.47 285 (6471.50) 61492.45
Task G: Adjust the predicted pay rates (3%) to determine the base pay rate you will offer
for each benchmark job.
Predicted 1.03
Receptionist 22,144.90 22,809.25
Admin Assistant 25,721.95 26,493.61
Payroll Assistant 35,260.75 36,318.57
Ops Analyst 56,723.05 58,424.74
Benefits Manager 61,492.45 63,337.22
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Task H: Create pay grades by combining any benchmark jobs that are substantially
comparable for pay purposes. Clearly label your pay grades and explain why you
combined any benchmark jobs to form a grade.
Grade A 100145
I would like to combine the admin assistant and
the receptionist. Simply because the jobs are so
Grade B 146185
closely worth the same amount from a company
Grade C 186265 standpoint. Because of this they should be on the
same pay-grade.
Grade D 266300
Task I: Use your answer to Task H to determine the pay range (i.e., minimum and
maximum) for each pay
grade.
Adjusted pay Average (mid) Min Max
Grade A 22,809.25 24,651.43 22,186.28 27,116.57
26,493.61
Grade B 36,318.57 36,318,57 25,423.00 47,214.14
Grade C 58,424.74 58,424,74 40,897.32 75,952.16
Grade D 63,337.22 63,337,22 44,336.06 82,338.39
Task J: Given the pay structure you have generated, consider the following: » Does this
pay structure make good business sense? Do you think it is consistent with the
organization’s business strategy? » What are the implications of this pay structure for
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other HR systems, such as retention and recruiting?
Yes the pay structure makes sensible business sense. It is also consistent with the organization’s
business strategy because it still allows for there to be error and still become profitable. The
implications in regards to retention and recruiting are the fact that the company will still be able to
compete with other companies that are similar in size.
References
SHRM. (2015). Benefits Manager. Retrieved September 9, 2015 from
http://www.shrm.org/templatestools/samples/jobdescriptions/pages/cms_001155.aspx
Mello, Jeffrey A. (2015). Strategic Human Resource Management, 4th edition.
Wendt, L. (2014). From measurement to ownership: The evolution and organizational
implications of modern performance management. Cornell HR Review, 1.
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