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Phase 2 Essay

712 words - 3 pages

Pay Structure
Although FastCat has diverse positions throughout the company, we have created one pay structure. The company categorized employees into four categories. These four categories have been defined as management, technical, support, and administrative. By utilizing a single pay structure, we want to create a fair system that is company-wide and is competitive across the market.
The four categories do have different requirements per job. The knowledge, skills, abilities and other characteristics have to be considered in each position. Keeping this in mind, we have decided to use different grades per job family. It is important to have each grade clearly defined so that the route of the career path is easily understood by all members of the organization. The steps to promotion should also be clearly defined. If employees understand how they can improve and move up in the company then that will lead to an increase in employee productivity and motivation.
Policy Regarding Pay Form
Deciding which pay form to use when compensating employees is extremely important to a company. Many things are taken into consideration: labor costs, the correlation between performance and pay, customer service, and the ability to attract and retain employees which is extremely important to FastCat’s need for innovation. We believe a single pay structure coincides with our single based plan for the organization. We want to keep things simple and understandable to all areas of the organization. This strategy will allow employees to understand how their performance and the performance of others relate to the success of the company through specific measures. It is also important that the strategies align with the objectives of FastCat. We believe this encourage the idea that the organization is a single unit and all the teams have the same general expectations. Our objectives are to encourage innovation, increase customer service and create employee awareness and loyalty.
With FastCat’s strategy and objectives in mind, we have decided to pay at the market rate. First, it is not feasible for FastCat to pay above the market rate. With the current resources, FastCat has decided to pay at the market rate to...

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