HRM598 Week 4 Case Study Getting and Using Compensation
Compensation information is now widely available. Click on
the website www.salary.com. This site provides free data on jobs, including job
description, annual salary by Zip Code, distribution by quartiles of salary
amounts, info on benefits, etc. The basic information that an organization
would get if it bought a salary survey from a consultant or conducted its own
salary survey can be found here.
This site provides pay data on hundreds of jobs in cities all
over the U.S. in many different industries. Identify several jobs (at least
three) of interest to you, such as accountant, financial analyst, product
manager, stockbroker, or manager compensation manager. Select specific cities
or use the national average. Obtain the median, the 25th and 75th percentile
base wage, and the total cash compensation rates for each job.
Respond to the following questions.
1. Which jobs are paid more or less? Is this what you would
have expected? Why or why not? What factors could explain the differences in
2. Do the jobs have different bonuses as a percentage of
their base salaries? Why or why not? What could explain these differences?
3. Do the data include the value of the stock options? What
are the implications of this?
4. Read the job descriptions. Are they accurate descriptions
for jobs that you would be applying for? Why or why not? Are there jobs for
which you cannot find an appropriate match? Why do you think this is the case?
5. Check out pay levels for these types of jobs in your
school’s career office or other local or regional source. How does the pay for
jobs advertised in your career office or other local or regional source differ
from pay levels on www.salary.com? Why do you think these differences exist?
6. How do you use this information while negotiating your
salary in your job after graduation or when you apply for a different job? What
data would you provide to support your “asking price”? What factors
will influence whether or not you get what you ask for?
7. What is the relevant labor market for these jobs? How big
are the differences between salaries in different locations?
8. For each job, compare the median salary to the low and
high averages. How much variation exists? What factors might explain this
variation in pay rates for the same job?
9. Look for a description of how these salary data are
developed. Do you think it provides enough information? Why or why not? Discuss
some of the factors that might impair the accuracy of these data. What are the
implications of using inaccurate salary data for individuals or companies?
10. With this information available for free, why would you
bother with consultants’ surveys?
11. If you were a manager, how would you justify paying one
of your employees either higher or lower than the results shown on this
12. In your conclusion, highlight one thing you learned that
would help you in the future.
You paper should respond with one or two paragraphs for each
question, and one brief paragraph each for an introduction and conclusion.