Posted: September 13th, 2017

Compensation Project

Compensation Project

Order Description

Heading top of Page 1
1-Describe Organization (important data) and Task
2-Summarize Comp Study Steps
3-Describe Surveys Used
4-Describe the Aging Process Used (Display Completed Aging Table).
Assume the client knows nothing about the aging process.
5-Describe the Position Worksheet Format
6-Explain and Display the Position Range (see display below)
7-Assess the Pay Rate of Incumbent (your recommendation and reasoning)
8-Summary/Conclusions
9-Your Total Charge $________ (between $200 and $3,500) No justification necessary
Average Charge = 2.0 Bonus Points; Second Closest = 1.0 Bonus Point

Compensation Project

NOTES: Beal Street Neighborhood Clinic. Organization data: 32 full-time and 2 part-time staff. Independent non-profit outpatient clinic. Serves outpatient health care needs of a South-Chicago community. Annual revenues of approximately $7.1 million. Funding from government grants and donations.

The clinic CEO needs a mini-compensation study of one position: Office Manager. After reviewing the job description and speaking with the incumbent, you have matched the position to three survey positions. After 14 years in the position, the incumbent’s current annual rate is $56,100.
1.    National Non-Profit Salary Survey, 2014 edition, nationwide, 194 non-profit organizations. Effective date of data 11/1/14.
2.    Chicago Health Services Salary Survey, 2013-2014 edition city survey of 50 positions from 94 Chicago health services orgs. Effective date of data is June 1, 2014.
3.    Chicago Metro Clinic Salary Survey, 2012-2013 edition, regional comp survey, 23 Chicago metro health clinics. Effective date of data is 10/1/2013.
You and the CEO have determined it is appropriate to age the survey data to September 1, 2015. The tasks are:
1.    Use survey data to identify the position’s market rate.
2.    Use the market rate to create a pay range. The market rate would be the midpoint for the range. The range would include the range minimum, maximum, 1st quartile top, and 3rd quartile top. Use a 50% range.
3.    Assess the incumbent’s rate. Is it reasonable or should it be raised? If raised, to what amount? Why?
4.    Complete a written report plus worksheet.
Your written report should be no longer than two pages (Word format) plus the 1-page worksheet (Excel format) as a third page.
Your completed Aging Table (see following format) should be submitted no later than 11:59 p.m. on Monday, April 6, 2015. No points. This is an optional submission.
Late submission = no critique.
Your completed/updated Worksheet and 2-Page Report must be submitted no later than 11:59 p.m. on Tuesday, April 13, 2015. Maximum of 25.0 points. (12.5 points each.)
Required Format for Report:
Heading top of Page 1
1-Describe Organization (important data) and Task
2-Summarize Comp Study Steps
3-Describe Surveys Used
4-Describe the Aging Process Used (Display Completed Aging Table).
Assume the client knows nothing about the aging process.
5-Describe the Position Worksheet Format
6-Explain and Display the Position Range (see display below)
7-Assess the Pay Rate of Incumbent (your recommendation and reasoning)
8-Summary/Conclusions
9-Your Total Charge $________ (between $200 and $3,500)  No justification necessary
Average Charge = 2.0 Bonus Points; Second Closest = 1.0 Bonus Point

AGE DATA:
Salary Budget Increase
Actual 2013: 2.5%    Actual 2014: 2.7%    Projected 2015: 3.0%
Target Date: 9/1/2015
AGING TABLE:
Aging Table
2013    2014    2015
9/1    Age Factor
Salary Budget Increases    2.5%    2.7%    3.0%

National Non-Profit Salary Survey     NA    1.0045    1.02    1.0245
(Effective 11/1/14)        2 months    8 months
Chicago Health Services Salary Survey    NA    1.01575    1.02    1.0360
(Effective 6/1/14)        7 months    8 months
Chicago Metro Clinic Salary Survey    1.0062    1.027    1.02    1.054
(Effective 10/1/13)    3 months    12 months    8 months

National Non Profit Salary Survey 2014- 2 months from effective date
0.027/12 X 2= .0045

POSITION RANGE:
Office Manager:
Minimum    1st Quartile    Midpoint (K33)    3rd Quartile    Maximum    Range
$00.0    $00.0    $00.0    $00.0    $00.0    50%

For 50% range: Midpoint x 1.2 = Maximum; Midpoint x 0.8 = Minimum. For other points use a simple average.

SUGGESTED SEQUENCE OF ACTIVITIES:
1.    Complete aging calculations
2.    Complete position worksheet
a.    Heading information (Client & Position Title
b.    ID Surveys
i.    Insert profile descriptors in worksheet
c.    Insert Age Factors
d.    Insert Data from Survey Pages
e.    Delete Unused Cell Data
3.    Compile/write report
a.    Position ranges: determine range % for position
b.    Insert midpoint amount (from worksheet)
c.    Calculate Grade Minimum, Maximum and Quartiles
4.    Submit 2-Page Report and 1-Page Worksheet
CRITERIA FOR EVALUATION OF COMP STUDY:
1.    Accuracy of data/computations [The Excel Worksheet] = 12.5 Points Maximum ]
2.    Logic of narration (understandability) [The 2-page Report] = 12.5 Points Maximum]
3.    Professional-looking document. Clear reading narrative and complete sentences.
4.    Sentence start with “This” “That” or “They” = -0.5 point each.
5.    Run-On Sentence = -2.0 points each
6.    On-time submission. Late: -0.5 point

COMPENSATION STUDY — Base Pay
Position:                                 Project Sample Worksheet
Survey    Mean    25%    50%    75%        Age Factor        Adjusted Mean    Adjusted 25%    Adjusted 50%    Adjusted 75%
National Non-Profit Survey                        1.0245
All — Base Pay    $59.0    $46.8    $56.9    $69.9                $60.4    $47.9    $58.3    $71.6
$ Budget: $4.0 to $7.9m    $52.2        $48.4                    $53.5        $49.6
Size: 15 to 34 Employees    $48.7    $44.6    $46.1    $55.1                $49.9    $45.7    $47.2    $56.4
Type: Hea & Soc Welfr    $64.5    $50.4    $69.2    $73.2                $66.1    $51.6    $70.9    $75.0
Location: Chicago Area    $67.4    $57.8    $67.0    $76.2                $69.1    $59.2    $68.6    $78.1

Chicago Health Services Sal Svy                        1.0360
All — Base Pay    $59.0    $46.8    $57.9    $69.9                $61.1    $48.5    $60.0    $72.4
$ Budget:                                 $0.0    $0.0    $0.0    $0.0
Size:                                 $0.0    $0.0    $0.0    $0.0
Type:                                 $0.0    $0.0    $0.0    $0.0
Location:                                 $0.0    $0.0    $0.0    $0.0

Chicago Metro Clinic Sal Svy                        1.0540
All — Base Pay    $59.0    $46.8    $57.9    $69.9                $62.2    $49.3    $61.0    $73.7
$ Budget:                                 $0.0    $0.0    $0.0    $0.0
Size:                                 $0.0    $0.0    $0.0    $0.0
Type:                                 $0.0    $0.0    $0.0    $0.0
Location:                                 $0.0    $0.0    $0.0    $0.0

Av – All Base Pay                                $61.3    $48.6    $59.8    $72.6

Av – Budget                                $17.8    $0.0    $16.5    $0.0
Av – Staff Size                                $16.6    $15.2    $15.7    $18.8
Av – Type                                $22.0    $17.2    $23.6    $25.0
Av – Location — DC                                $23.0    $19.7    $22.9    $26.0

Market Rates                                 $19.9    $13.0    $19.7    $17.5

Delete any $0.0 when finished entering all amounts
Rounding:
$56.85 = $56.8
$56.86 = $56.9