Notably, once it comes to employees’ payment, Human Resource managers face an intriguing challenge; the challenge of offering competitive salaries so as to attract qualified talent alongside retaining it, without harming the bottom line. Luckily, the competitive pay practice (a common-sense way of setting salaries), has been observed to be an easy process that is quite imperative in any business. The development of any competitive pay policy requires reviewing of the firm’s inside job descriptions along with their respective salaries; then comparing them to analogous positions of different organizations. In this sense, the employer may determine what he/she would be paying his/her workers by obtaining salary data from other organizations or even from public sources. Therefore, as the ABC Retail HR manager, which is an independent retail firm, I will develop a competitive pay policy for ABC Retail Company that will sustain the company’s strategic goal of increasing its market share to 20% by 2019 in the St. Louis area. It is significant to note that according to a 2015 survey, the market share of this company in St. Louis area was 17.8%, facing a stiff competition from Target and Kohls. ABC Retail has ten stores, with each store comprising of one store manager, 3 assistant store managers, 15 department managers, 20 shift leaders, 150 associates, not to mention that each store contains a total of 149 employees when fully staffed.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- The Current Competitive Pay Policy of ABC Retail
- Value-Centred Salary Structure
- Balanced Value-Sharing
- Flexible and Comprehensive Benefit Package
- Executive Benefits
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This document proposes a comprehensive competitive pay policy for ABC Retail, an independent retail firm operating in the St. Louis area. The policy aims to support ABC Retail's strategic goal of increasing its market share to 20% by 2019, in the face of stiff competition from Target and Kohl's. The policy focuses on creating a complete pay strategy that encompasses a value-centered salary structure, balanced value-sharing, a flexible and comprehensive benefits package, and executive benefits.
- Developing a competitive pay policy to attract and retain qualified talent.
- Balancing short-term and long-term value-sharing to incentivize both immediate and sustained performance.
- Creating a flexible benefits package that caters to the diverse needs of employees.
- Implementing executive benefits to recognize and reward high-performing leaders.
- Utilizing market data to inform salary structures and ensure internal equity.
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: The document introduces the challenge of offering competitive salaries to attract and retain talent without negatively impacting the bottom line. It highlights the importance of a competitive pay policy for businesses and outlines the specific objective of developing a policy for ABC Retail to achieve its market share goals.
- The Current Competitive Pay Policy of ABC Retail: This section analyzes the current pay strategy of ABC Retail, acknowledging its strengths but identifying key weaknesses. It emphasizes the need for a more complete pay strategy that includes a value-centered salary structure, balanced value-sharing, a flexible and comprehensive benefits package, and executive benefits.
- Value-Centred Salary Structure: This chapter focuses on the importance of aligning salary levels with market data and internal equity. It proposes a hybrid salary framework that combines traditional and broadband approaches to create a flexible and progressive pay hierarchy.
- Balanced Value-Sharing: This section explores the significance of balanced value-sharing in a competitive pay policy. It emphasizes the need to reward both short-term and long-term performance to incentivize employees to maintain the revenue engine of the business while also focusing on sustainable growth. It outlines specific guidelines for achieving this balance.
- Flexible and Comprehensive Benefit Package: This chapter highlights the need for a flexible benefits package that caters to the diverse needs of employees. It emphasizes understanding the specific desires and needs of different employee profiles and offering a range of options rather than a "one-size-fits-all" approach.
- Executive Benefits: This section emphasizes the importance of providing executive benefits that recognize and reward high-performing leaders. It suggests specific benefits that can motivate top officials, especially those over 50 years old, and underscores the importance of offering unique perks to attract and retain top talent in a competitive environment.
Schlüsselwörter (Keywords)
The key focus of this document is on developing a comprehensive and competitive pay policy for ABC Retail. The key themes and concepts include market share growth, talent acquisition and retention, value-centered salary structure, balanced value-sharing, flexible benefits, executive benefits, and market data analysis.
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- Business Administrator Mutinda Jackson (Autor), 2018, Competitive Advantage of an ABC Retail Firm, Múnich, GRIN Verlag, https://www.grin.com/document/429017
