Compensatory Fun (or Sort Of)

So I’m behind on my homework. Unless this is the first post you’ve read here you’re not at all surprised. With respect to the team project, I’m staying with the team, which is the priority. I can finish my individual project at the last-minute or turn it in where it’s not top-notch and no one else is hurt, so I placed the priority on the team work while I was traveling last week.

This has been a helpful class, but it’s kind of distracting because all of the work I’m doing for the team project I feel like I should be doing for Samaritan but there’s not enough margin to do both at the same time. It leaves me with a weird feeling like making things better at my day job is on hold while I finish school. Now it’s not as long until that happens as it used to be (138 days until all my classwork is done…152 days until graduation) but it still would be nice to be able to start applying what I’m learning in this class right away.

What is it that I’m learning? I’m glad you asked.

Right now the teams are putting together a compensation structure for a fictitious (yes, I mistyped that the first time again) company called Fastcat. My part of the work was to work on the software engineering department, which was enlightening. The first part of the process is coming up with a rubric by which we evaluate the worth of a particular position (this is job based compensation analysis). We decided on the following job based compensable factors: skills, effort, responsibility, customer focus, and interpersonal savvy.

As a part of the job analysis, for each team/department, a decision is made as to, for that department (or company-wide in some cases) how important each of the factors is, breaking them up into portions of 100%. So if skill was twice as important as responsibility for a group of positions, it might be 40% of the rubric and responsibility 20%. The other factors would make up the remaining 40%. Then for each position, each of the factors is given an importance rating from 1 to 5, and then each of these is multiplied out to a total job evaluation score (JE points) with a maximum of 100x the number of compensable factors (in our case, a max of 500). This allows each job to be ranked comparatively with others for the purpose of a compensation strategy. A job with 280 JE points should have a slightly higher salary range from a job with 270 JE points. This makes the classification of jobs in an organization a little less subjective. When the process is done you can look for inconsistencies in the ratings (e.g. two jobs which both require a master’s degree but with differing skills ratings).

So that’s what we’ve been working on and are close to being done. We’ll make a 30 minute presentation on Friday to the class on our findings and recommendations and that will be the largest portion of our grade for the class. I’m pretty excited about the work our team’s gotten done here, and think we’ll have a solid presentation ready for Friday.

Now to figure out what I’m doing to evaluate the CEO compensation for Brian Goldner….

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