FastCat Compensation Case
Phase 2: External Competitiveness
Presented to
Oliver Stoutner, M.B.A.
HR Practicum I: Compensation and Benefits
MGT 4250-01
Presented By
Morgan Tullis
Kimberly Bowers
Ashlie Hawes
Travis Stone
Rachel Kipling
Step 1: Recommend Strategy for Competitiveness
When determining a compensation strategy for FastCat, we decided the best option would be to have a job-based structure. The reason for this is that we want to focus on our internal pay structure and measure them against our external competitors. The easiest way to figure out a pay structure is to compare our pay structure to our competitors. We will be comparing our base pay to that of competitors.
We recommended that FastCat have multiple pay levels based …show more content…
This will allow each job to be payed in a competitive way. Our regression line from the survey showed us how much we were paying, whether it be too much or too little. This allowed us to determine if we should be giving more compensation to our employees if we were not meeting the same pay as our competitors.
FastCat’s strategy is consistent with all their objectives. The first objective was to keep following as well as surpassing legal regulations. By looking at the regression line, one can see that FastCat pays above market average for a number of jobs. This goes hand in hand with the objective of surpassing the legal regulations by offering more compensation to its employees than is required by …show more content…
We wanted to show our employees how competitive we were compare to the medium and larger companies we chose for the survey. This allowed to have a good fit for our regression line. We were able to achieve an R square value of .845. The closer to one the R squared value is, the truer the match of the FastCat jobs with the benchmark jobs. The R squared value shows that our comparisons were accurate and our job evaluation points are mostly in line with the market average.
Our pay level is very close to the pay level of our competitors. We believe we should pay the same for administrative jobs as our competitors. Overtime we can give small pay raises and bonuses to great performances like securing great contracts with our customers and so forth. Engineering and Tech jobs should be paid slightly above the market pay average. These jobs provide long term growth to our company through great innovation and creativity. Cost may be an issue in the future for paying more, but we believe it will be minimized by the great talent we will attract. The talent we attract will bring in generous revenue and cover and exceed the extra costs. Total cash and bonuses will be what we use to attract talent. Matching and exceeding base pay and bonuses will attract the best talent and secure our dominance in the
Phase 2: External Competitiveness
Presented to
Oliver Stoutner, M.B.A.
HR Practicum I: Compensation and Benefits
MGT 4250-01
Presented By
Morgan Tullis
Kimberly Bowers
Ashlie Hawes
Travis Stone
Rachel Kipling
Step 1: Recommend Strategy for Competitiveness
When determining a compensation strategy for FastCat, we decided the best option would be to have a job-based structure. The reason for this is that we want to focus on our internal pay structure and measure them against our external competitors. The easiest way to figure out a pay structure is to compare our pay structure to our competitors. We will be comparing our base pay to that of competitors.
We recommended that FastCat have multiple pay levels based …show more content…
This will allow each job to be payed in a competitive way. Our regression line from the survey showed us how much we were paying, whether it be too much or too little. This allowed us to determine if we should be giving more compensation to our employees if we were not meeting the same pay as our competitors.
FastCat’s strategy is consistent with all their objectives. The first objective was to keep following as well as surpassing legal regulations. By looking at the regression line, one can see that FastCat pays above market average for a number of jobs. This goes hand in hand with the objective of surpassing the legal regulations by offering more compensation to its employees than is required by …show more content…
We wanted to show our employees how competitive we were compare to the medium and larger companies we chose for the survey. This allowed to have a good fit for our regression line. We were able to achieve an R square value of .845. The closer to one the R squared value is, the truer the match of the FastCat jobs with the benchmark jobs. The R squared value shows that our comparisons were accurate and our job evaluation points are mostly in line with the market average.
Our pay level is very close to the pay level of our competitors. We believe we should pay the same for administrative jobs as our competitors. Overtime we can give small pay raises and bonuses to great performances like securing great contracts with our customers and so forth. Engineering and Tech jobs should be paid slightly above the market pay average. These jobs provide long term growth to our company through great innovation and creativity. Cost may be an issue in the future for paying more, but we believe it will be minimized by the great talent we will attract. The talent we attract will bring in generous revenue and cover and exceed the extra costs. Total cash and bonuses will be what we use to attract talent. Matching and exceeding base pay and bonuses will attract the best talent and secure our dominance in the