BA 361 Upper Iowa Basic Steps when Conducting a Wage Salary Survey Discussion

R1

In relation to this discussion, I will be talking about the basic steps when conducting a wage/salary survey. Businesses conduct these surveys for many different reasons that way they can know a figure amount of salaries and wages owed within a year based on a given job or position. With knowing these numbers, businesses can then determine if their wage numbers are accurate and correct, then determine if there should be cuts and/or raises. The one thing I have come to learn with a survey of this figure, is that this is a very time sensitive survey and it can go bad very quickly. When determining steps to follow, companies have to take into consideration the size, the industry bring surveyed, as well as the basic functions of that job. Every wage survey for different jobs will be different, as the size of the company can vary as well as the amount shown. With jobs that have employees that are older than others as well as know more skills, it can cause problems when increasing wages as older people tend to get higher raises than someone who is younger or may have only been with the company for a year. When conducting a survey, this has to be taken into account as well as everyone will have a different increase. I would say that the objection stated is valid, but can lead to problems as a younger person with just as much knowledge should be getting the same amount of a raise as someone older.

Bizfluent. 2020. Factors To Consider When Conducting A Wage & Salary Survey. [online] Available at: <https://bizfluent.com/info-8595255-factors-conducting-wage-salary-survey.html> [Accessed 23 November 2020].

R2

First and foremost, we have to determine the purpose of the survey, for which jobs, markets, and/or firms as well as what information should be obtained. Other factors should also be included in this step such as the time frame and expected accuracy. Next, the most important step is to determine the methods used to conduct the survey. There are many approaches to conduct a survey such as in-person interviews, telephone interviews, mailed questionnaires, and online questionnaires. One should prefer the most effective and efficient method so to get the result within the time frame meanwhile ensure the quality (accuracy) of information collected.

On the other hand, I personally think that the objection is valid. First, because lowest-paid employees usually have a lesser opportunity to get a high increase. Second, even if they do, it does not turn the fact that they are having lowest paid after the wage increased because if the basic wage is not a large amount, even if the percentage of annual increase is high, the wage increases only a little. In contrast, if the basic wage amount is large, even if a small percentage of the annual increase can have a huge increase in salary.

Reference
National Business Research Institute. (n.d.). Methods of survey data collection. Retrieved fromhttps://www.nbrii.com/customer-survey-white-papers…

R3

Describe the basic steps in conducting a wage and salary survey. What are some factors to consider? One of the objections to granting wage increases on a percentage basis is that the lowest-paid employees, who are having the most trouble making ends meet, get the smallest increase, while the highest-paid employees get the largest increase. Is this objection a valid one? Explain.

Determining competitive pay rates for specific roles within an organization is very important for attracting qualified applicants and also for retaining current employees. After a job evaluation has been completed to determine how all roles rank in terms of their worth within an organization, most employers then complete a wage and salary survey. A wage and salary survey is basically a survey of wages paid to employees with similar job titles within the relevant labor market of the organization (Bohlander, S.S.S.M.G. W., 2015). It is first important to determine the criteria to be considered and what job titles are similar to the positions that are being examined within the organization (Bohlander, S.S.S.M.G. W., 2015). From there, survey data can either be collected from websites such as the Bureau of Labor Statistics’ website, or the organization can actually send surveys out to other organizations within their labor market (Bohlander, S.S.S.M.G. W., 2015). Once data has been collected, management within the organization is able to start determining proper pay rates and grades for those within their organization. Of course, they can create a salary range within pay grades so that they can still pay based off experience and skill. Conducting a wage and salary survey ensures that employees within an organization are paid fairly; it ensures that the organization maintains external equity.

I know of many employers that give annual raises on a percentage basis of every employee’s base pay. If every employee’s raise is the same percentage, then those who have the highest base pay will receive the largest raise, and those who have the lowest base pay will receive the smallest raise. It is no surprise that many object this type of pay increase, and I do think that this is a valid objection. While pay increases based on a percentage of an employee’s salary are often designed to increase pay at a rate a little higher than the annual inflation rate, these types of pay increases also help to widen the pay gap between the highest earners and the lowest earners. It can be very frustrating for those who earn the least to continue to struggle and receive a smaller raise while those who earn the most live comfortably and continue to earn even more. As many do not believe that this method for increasing pay is completely fair, there are many organization’s that give a different raise to each employee, still in terms of percentage, but they offer larger raises to those who perform the best. There is the potential for bias when this method is used, though. While everyone appreciates a pay increase, there is no method used to determine pay increases that will make every employee completely happy.

Reference

Bohlander, S.S.S.M.G. W. (2015). Managing Human Resources. [MBS Direct]. Retrieved from https://mbsdirect.vitalsource.com/#/books/9781305480735/

R4

One basic step to conduct a wage and salary survey is “when an organization takes a survey of wages paid by various employers in the relevant labor market to maintain external equity in employees’ wages equivalent to other employees in similar establishments” (Bohlander, 2015). Career field, job type, and location are key factors to consider when conducting a wage and salary survey. There are plenty of resources online that give a detailed description of various wage and salaries by job type, states, counties, and cities.

I do not feel like this objection is ultimately a valid one between granting equal percentage wage increases across employees who either are paid a top dollar or lowest-paid positions. When the employee was originally hired, they accepted or bargained for the current pay rate and job. As long as the organization is implementing a fair pay raise which factors in inflation and the cost of living, I do not feel like they are doing anything wrong. Each employee was initially rated upon skillset, experience, and competency for their current position and pay level. While I feel like competency-based pay would be more effective in annual raises, I think percentage-based pay is fair across the board.

Bohlander, S.S.S.M.G. W. (2015). Managing Human Resources, 17th Edition, Cengage

Learning US. P.363)

R5

When it comes to profit sharing within a company, there are many advantages for the employees due to this. When determining factors that go into this profit sharing number, there are many things to present. The first that I can think of would be the amount of output the company is presenting, the profit share number with the employees will increase. The second thing I would like to talk about would be the competitive advantage that relates to this matter. Businesses that contain a profit sharing plan have a huge advantage over others, as this is money that is being given straight back to the employees. From what I have read, this will help keep higher quality workers in the company due to competitive plans. One big thing that I think of is the overall efficiency rate within the company will increase, as employees will be motivated to have more outputs, leading to more money in their hands.

When it comes to different incentives companies can offer to professionals or employees that are not administrative, there are many that come across my mind. The first that I would think of would be a wage increase incentive, as this drives the employees to work harder to have a greater pay outcome. The second one that I think of would be a position increase within that company. With this, the employee can feel that they have gotten to move onto something bigger and better thus driving them to work harder.

Gaille, B., 2020. 10 Profit Sharing Plans Advantages And Disadvantages. [online] BrandonGaille.com. Available at: <https://brandongaille.com/10-profit-sharing-plans-advantages-and-disadvantages/> [Accessed 23 November 2020].

R6

When an employer has a profit-sharing plan for the organization it motivates employees to perform at a higher caliper. “Profit-sharing plans are intended to give employees the opportunity to increase their earnings by contributing to the growth of their organization’s profits” (Bohlander, 2015). As the organization thrives the employees then reap the benefits as well. The gives the employees a higher stake within the organization. I would then implement a plan that would share 25 percent of the net profit across the organization with the employees once a year. This should give a strong competitive advantage to the organization for current and future employees. This is a performance-based benefit that works for the organization as a whole.

Companies can offer various incentives for professionals not interested in administrative positions to retain employees. Some of these include “profit sharing, stock ownership, pay for performance, or bonuses” (Bohlander, 2015). Although they do not want to take a management position within the organization their skillset and knowledge can still be valuable. These incentives can entice an employee to stay within the current organization without technically moving up. Any time an employer offers a form of compensation to employees within the organization it boosts morale and maintains a fruitful relationship.

Bohlander, S.S.S.M.G. W. (2015). Managing Human Resources, 17th Edition, Cengage

Learning US. P.402, P.406)

R7

LO 4: Because of competitive forces within your industry, you have decided to implement a profit sharing plan for your employees. Discuss the advantages of profit sharing and identify specific characteristics that will ensure success for your plan.

One of the advantages is that profit sharing plan can help to stimulate employees to think and feel more like partners in the enterprise and thus concerning themselves with the welfare of the organization as a whole. In other words, it serves as a motivation for the employee’s commitment and possesses a sense of belongingness to the firm. Next, profit-sharing plan can result in equitable distribution of profit among the employers and employees based on the profit-sharing agreement. One factor leads to another, a profit sharing plan acts as a driving force for higher production and productivity as workers are motivated.

Knowing that profit sharing plan is intended to motivate employees, one characteristic of the plan is that compensates using an attractive and reasonable method. A mismatch approach planning can possibly lead to a reverse effect on employee’s performance and thus more creative solution is needed to motivate employees effectively. For example, countless studies have been done to prove that individual and group-based pay-for-performance plans can cause a reverse effect on a professional’s performance. This is because individual incentives narrow a person’s focus and group-pay can be unfair.

LO 5: Create a list of different types of incentives companies can offer professionals not interested in administrative positions.

Notice that there are many types of incentives plan for different targets including individuals, groups, sales, enterprise, and professional employees, and executives. Hence, examples of different types of incentives for professionals include:
à bonuses/commissions
à profit sharing
à stock ownership
à partnership
à long-term pay-for-performance

References
Sunitha, C. (n.d.). Profit-sharing: features, types and problems. Retrieved from https://www.economicsdiscussion.net/profit-sharing…
Snell, S.A., Morris, S.S., and Bohlander, G.W. (2016). Managing human resources. 17th Edition. MA: Cengage.

R8

LO4: Profit sharing is any procedure by which an employer pays, or makes available to all regular employees, special current or deferred sums based on the organization’s profits. Profit sharing helps employees feel like they are more so partners rather than small employees. Another advantage is that it is a way for employees to get money. Profit sharing also provides motivation for employees.

LO5: A list of incentives companies can offer professionals not interested in administrative positions are:

• Profit sharing
• Partnership option
• Commission
• Stock options
• Incentives based on the daily, weekly or monthly targets
• Yearly bonus
• Flexible working environment

I work in an administrative position now and one of the perks is that I can have a flexible work environment. I can stay home and work or go into the office. This comes in handy for those days where you need to catch up on work, but do not want to go into the office.