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The e-sonic Compensation System:
External Market Competitiveness

LIR 561: Compensation Systems
Professor: Joe Martocchio
November 15, 2005

Team 1:
Ka Man Cheung
Christine Layne
Gene Paik
Tamica Taylor
Matt Williams

Table of Contents

1. Executive Summary 3

2. Pay-policy Mixes 6

a. Business Development Job Structure 6 b. Administrative Job Structure 7 c. Software Engineering Job Structure 8 d. Market Research Job Structure 9 e. Customer Service Job Structure 11

3. Pay-policy level decision 13

4. Compensation Survey 15

a. Choose competitors 15 i. Industry type: 15 ii. Employee number: 16 iii. Union Status: 16 b. Benchmark jobs 16 c. Reconcile …show more content…

The spread was determined based on the similarity of the positions in the structure. A pay range chart was provided indicating the minimum, midpoint, maximum, and median pay amount for each e-sonic position. A summary for each structure is provided to make future analysis and updates to the system easier. Overall, each step was taken to insure consistency with the market and decision to deviate from the market were justified and essential to ensure e-sonic’s long term success.

2. Pay-policy Mixes

a. Business Development Job Structure

For the Business Development job structure, pay will be allocated in the following forms to reinforce certain needed behaviors from this critical division of e-sonic:

|Pay Form |Percentage |
|Base Wage |50 |
|Short-Term incentives |6 |
|Long-Term incentives |15 |
|Benefits