HRMGT194 – Fundamentals of Compensation
Compensation-Related – Case Study
Two compensation-related scenarios are presented below. What questions need to be answered and what additional pieces of information do you need to respond wisely to these scenarios?
Scenario 1: Balancing Internal Alignment and External Competitiveness
An employee says she received an offer from another employer and is considering accepting the offer. Money is a huge factor. She currently makes $60,000 per year and the offer is for $68,000 per year. The employees states she will decline the offer if you agree is a $5000 pay increase.
What should you consider in this situation to make a responsible decision about how to proceed?
Scenario 2: Adjusting Compensation
As the hiring manager for an open position in your department, you decided to offer the job to an employee who works in another department in the organization. The position is classified two pay grades higher than the employee’s current position.
What additional questions must be answered, and what additional information do you need to make a responsible decision regarding how much, if any, of a pay increase is appropriate in this case?
How will you determine an appropriate starting pay for this employee’s pending promotion?