Case: Problem in Pay System

1. Are the CCUA department’s current pay practices concerning data processor IIs and computer analyst Is externally equitable? Explain your answer. Pay practice in CCUA:

• Data processor II position:
  • $11. 00-$12. 70 per hour.
  • $24,960 per year based on their 40-hour workweek.
  • Health and life issuance are provided by the company at a cost of $950 per year per employee.
• Computer analyst I position:
  • Salary range $25,500-$32,500.
  • The average salary paid to the eight incumbents is $31,500.
  • Health and life issuance are provided by the company at a cost of $950 per year per employee.
  • Survey data:
    

    –	CCUA	Average salary	Mfg/ Consumer	Mfg/ Industrial	Banking	Other Financial Services	DP services	Wholesale distribution
    Junior analyst and programmer	31,500	35,156	33,750	40,714	35,000	32,143	37,500	32,875
    Data processor	24,960	27,500	26,000	29,000	28,000	26,500	26,000	27,000

• Data processor II position closely matches the survey’s Data processor. The computer analyst position is most comparable with the survey’s junior analyst and programmer.
• Both DP II’s and CA I’s at CCUA are underpaid compared to the market.
• Both DP II’s and CA I’s at CCUA have $950 health and life insurance.

2. What specific action, if any, do you recommend be taken now? Be specific and justify your recommendations as fully as possible.

• Conduct a wage survey: Who is the relevant labor market? What is the competition paying? What sources for market data? What benchmark jobs should be included? Get the survey done in the rural southwest area more in the locality where the department is situated so that data is more comparable and find the other benefits of the survey companies.
• Choose a pay policy and develop a pay structure: decrease the number of the employee and pay the higher salary. Or hire employees to buy by using fewer recruitment costs and training costs. Hire and pay employees following the policy and the structure.

3. What specific strategy do you recommend for the future so that these types of problems can be anticipated and avoided? Exit interviews: understand the reason for not staying in the company and find the solution to avoid it.

• Better scanning of local and regional external pay referents, do let employees think you are paying much less than others.
• Better two-way communication with the employee. Do the employee satisfaction survey once a year before somebody is trying to quit.
• Provide no monetary benefits.
• Provide a larger budget for job categories.

4. What additional information in this situation would have enabled you to improve the quality of your recommendations? Improve the exit interview and focus on the questions like:

• What is your primary reason for leaving?
• Did anything trigger your decision to leave?
• What was most satisfying about your job?
• What was the least satisfying about your job?
• What would you change about your job?
• Find some information about pay equity information: http://www. hrsdc. gc. ca/eng/labour/equality/pay_equity/about/guide. shtml
• Conduct the web search O*NET to find if there is any help.

5.