E-Sonic Records Compensation Format

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E-Sonic Records Compensation Format
Southern New Hampshire University
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Abstract
This final paper is combination of previous research to give E-Sonic a clear understanding on the procedures in completing a total compensation package. We will also look into the historical perspective on compensation packages. These packages include base pay, benefit packages and both short and long term incentives to retain and recruit talent. The output is sourced from the three major sections of research. I will give information gathered in each individual step to formulate a total package that will be competitive and attractive to our labor force. I will review the strategic analysis procedure to give an in depth look into industry profile, competition, foreign demand and labor market assessment. The internally consistent job structure is an important step. The formation of writing job descriptions, development of job structures, and both the development and implementation of a point evaluation method to quantify job differences objectively. The external competiveness is focused on where we take the direct relationship of external factors in creating a competitive pay package. The final portion of this paper ties everything together to give us the complete overlook on how compensation packages are formed and implanted within an organization. We, conclude the findings and give this organization a look on how we used the given resources to comply a tailor a compensation package to e-sonic.
Keywords: Compensation package, Pay scales, Job structure, Labor market assessment, Strategic analysis
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E-Sonic Records Compensation Format
Introduction
E-Sonic is a 1,000 employee based company that is looking to expand its products and services on a digital format. They have their revenue stream decline over the years due to the advancements in technology and the demand for digital music vs traditional music, which consists of records and cds. The digital music industry is thriving with E-Sonics competitors posting gains on this type of product. Competitors such as Apples ITunes, Google Play, and Amazon’s Prime for streaming music. If E-sonic wants to turn around the decline in revenue their market entry point has to be now.
In addition to the new staff, new positions need to be created to ensure the success of the organization. Since digital music consists of a massive amount of stored data, positions such as data managers, information security specialists, and information technology project managers have to be hired to fulfill the demand of new customers. The shift from traditional marketing to an online platform also means hiring a creative director with a new marketing director to give market analysis and trends.
These positions consisted of different pay structures and pay levels. Being a consultant for E-sonic market research is done internally and externally to see what other competitors are compensating for these positions. E-sonic is eyeing for the most talented individuals to fill these positions and keeping their completive and aligned with the market median in wages and benefits. Since this is a new startup within an organization it’s important that E-sonic does not over pay for positions by not conducting the proper research with the information available to them.
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Historical Perspective
Workers Compensation has evolved over time to ensure that employees are being compensated fairly. A majority of time the labor force market dictates what employees should be compensated by adjusting itself to factors such as cost of living increases, inflation, and non-union and union negations. Companies need to ensure that they are in compliance with federal and state regulation when drafting their compensation packages. Compensation packages have evolved from base pay to a complex set of packages. These packages consist of base pay and benefit pay which include short and long term incentives.
The Department of Labor ensures that organizations are meeting the regulations put into place to give employees are fair and balanced compensation packages. In the past when no regulations were put into place, employees were treated poorly with very little compensation for the total amount of work they completed. A good example of this would be working long hours but only get paid the minimum amount. This law was implemented to remove this practice from the workforce. The enforcement of office workers compensation programs (OWCP) has four major disability compensation programs. These packages consist of wage replacement benefits, medical treatment, vocational rehabilitation and other key benefits.
The Fair Labor Standards Act (FLSA designed standards and overtime pay, which affected most private and public employment. This historic milestone was designed to give people fair opportunity for pay increases and pay equity which continues to be a topic of concern. This historical addition to the compensation of U.S. workers had led to the increase in productivity and has made our economy stronger. The importance of compensation packages is what shapes an organizations vision. In executive summaries corporations often include ethical and employee relations, which entails compensation packages.
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Executive Summary
The e-commerce market has exploded with online music platforms that allow users and subscribers to purchase music at a reduced rate. E-Sonic is entering this market trend with the promises of increasing overall revenue by providing an effective and efficient product and service to its consumers. The rapid growth of this industry is on the rise with the age of digital music and streaming being in high demand. Sonic Records will be launching E-sonic to allow music to be purchased online. Although the market consist of a multitude of organizations big and small offering similar products and services, E-sonic is looking to differentiate themselves from its competitors by creating a relation with its consumers.
The starting price for products will range from $0.75 – $1.25 a song. The purchase of entire albums will be at a reduced by price ranging from $9.99 to $12.99 depending on the negotiated contract with the other record labels. This pricing strategy will give E-sonic subscribers the opportunity to have a wider range of a music selection. E-sonic believes that it will provide consumers a new service at a reduced rates compared to their competitors. Music downloaded and purchased from our site is provided at high resolution and to provide high levels of output to increase its quality.
E-sonic has aligned its mission to provide an outstanding product with exceptional services by hiring the most talented individuals available. E-sonic is offering competitive and fair compensation packages that include more than just a base pay. A well rounded compensation package, in which it in entails short and long term incentives. This will allow us not only to attract but to also retain talent. This initiative will directly impact our production and services adding a sound and well structure organization.
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Strategic Analysis
Every industry in the United States falls under a category that is determined by the North American Industrial Classification System (NAICS). According to the NAICS, E-Sonic is under code 5122 which is Sound Recording Industries. Furthermore E-Sonic NAICS has it classified as a Record Production. These establishments contract with artists and arrange and finance the production of original master recordings. They also hold the rights to reproduce and sell making it a majority of its revenue (North American Industry Classification System (NAICS), 2013). This information is a necessity for E-Sonic to gain knowledge of its market place and to have a concept on who and what is their direct competitors.
External Market Environment
As stated above E-Sonic falls under code 5122 (Sound Recording Industries). This industry group comprises establishments primarily engaged in producing and distributing musical recordings, in publishing music, or in providing sound recording and related services (North American Industry Classification System (NAICS)).This is a highly competitive market and according to the U.S Census in 2009 the recording industry took in $14.8 billion in revenue. This shows an increase from the previous years. E-Sonic is facing a shift in the market going fromMP3 to the ability to stream music instead of purchasing it.
In a census conduct by the United States in digital downloads of music of single tracks is predict to be 1.2 billion and in full album downloads it reached 763.40 million in the United States alone. This creates a heavily competitive atmosphere with giant music sharing platforms such as I Tunes, Amazon, and SoundCloud. These organizations are constantly evaluating to give themselves an advantage in the marketplace. They understand the demand by its users and
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continue to thrive for innovation to continue success. E-sonic needs to follow in the same footsteps, yet differ themselves to make their product efficient, effective, and unique.
Competition
E-sound faces a couple of giants in the industry, one of them being Apple. The launch of ITunes was a major success for Apple in which it saw millions of subscribers flock it to start downloading music, movies, and TV shows. It also has the capability to stream live radio, and podcast, which is a digital, audio file made available on the Internet for downloading to a computer or portable media player, typically available as a series, new installments of which can be received by subscribers automatically. According to Fortune website a study was conducted by 40 analysists and it is estimated that ITunes did $4.1 billion in sales 28% higher than the previous year (Elmer-Dewitt, 2013). We can use those numbers to determine that our point of market entry is a bit late but we can succeed if we (E-sonic) diversify ourselves and offer a unique product/service that will give us the competitive advantage.
Organizations are often diversifying themselves and Amazon has launched a music purchasing agent, called Prime music. It offers over a million songs, and hundreds of playlists, ad-free, and personalized stations. Amazon has marketed this offering by including it in a package for its Prime subscribers. The concept that they follow is that everything is based on streaming, so you never own the song. This has allowed them to not charge for the song. Again this is another competitor with the same concept and a different approach.
SoundCloud allows its users to directly upload their own music and share it with other friends. This is not a direct competitor but an indirect competitor because it constantly takes potential customers away who want a free type of service. They cater to the same consumers in
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the same market place. Overall it doesn’t matter if the competitor directly produces music, or distributes is technology, it is always evolving, which brings a higher demand for music.
Foreign Demand
Due to significant improvements to the internet and the increase of access of the internet throughout the world the digital music sales are on the rise. According to the NY Times, in 2012 the global recording industry moving onto the road of recovery (Pfanner, 2013). The demand can be directly linked to the easier access to a global market. In 2012 it’s estimated that digital sales revenue made up for the offset on CD Sales. This article justifies the case that E-sonic needs to launch their internet based service to offset loses e-sonic has faced with the decline in CD sales.
Long-Term Industry Prospect
The record industry as we know it is dying. But the music industry is healthier and more vibrant than ever, with limitless possibilities for change and growth due to the Internet and the digitization of music (Kusek & Leonhard, 2015). People love entertainment and they always continue to enjoy music. It’s important for organizations such as E-Sonic, to adapt its self to the ever changing marketplace. The era of digital downloads is here and the market is always evolving such as the adaption of music streaming as well. The Bureau of Labor Statics sees an increase in the same marketplace due to the high demand for digital music.
Labor Market Assessment
Since this is an online based system it’s important that E-sonic add professionals that specialize in computer information technology. Some of these positions include a computer programmer whose 2012 median pay was $74,280 a year. A database administrator (DBA) whose 2012 median pay was $77,080 a year with a projected 10-19 percent job growth. The
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digital movement of music also needs to have a level of security since customers want to know their personal data is safe. An information security analyst plans and carries out security measures to protect an organizations computer network. This position is median level entry position pays $86, 170 a year. Security analysis is projected to grow 37% from 2012-2022, much faster than average for all occupations.
Functional Capabilities
E-sonic has to put in place the correct infrastructure needed to succeed in its online format. The investment into information systems is crucial for the success of E-sonic. The amount of data and information that needs to be processed to create a digital database to for its users to purchase music. I also think that marketing the new launch is going to be a constant formality of business. Competitors such as ITunes are always marketing themselves by reducing prices, hosting events, and continuously partnering up with recording artist for promotional needs. As consultants I think it’s important that every position be reviewed and staff be re-trained on the new changes in operation that is occurring within in the company. The importance of hiring an operations manager to keep projects operating on time is important. A human resource manager is what is going to tie everything together. The human resource manager will ensure that the objectives of each position is in align with those of the organizations mission.
Human Resource Capabilities
The music industry is a fast paced industry that is constantly changing and improving itself. It’s important that E-Sonic focuses its attention on gathering the right people to begin this start up. The marketing department is in need to revamp themselves I gather this assessment by the amount of time it took to create E-Sonic. Company management doesn’t have much
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knowledge when it comes to the improvements in the digital music age. This weakness needs to be addressed by training session by the human resource department.
Job Descriptions
A job description is a board, general, and written statement for a specific job, based on the findings of a job analysis which is part of a strategic analysis. It will include duties, purposes, and responsibilities. It also referenced as a job outline, or a scope of work for staff. These are important because they form the basic job specifications needed to complete the task given by the employer. A job description will also help E-Sonic to attract the right candidates for the job and provide a reference point for compensation decisions. This will allow them to hold competitive wages in their industry (Job Descriptions, 2003). It’s important that E-Sonic does under pay its staff due to a poor job description.
Job Description – Administrative Assistant
The administrative assistant maintains responsibility for all of E-Sonic’s electrical functions. Administrative assistants should possess strong multi-tasking abilities, exemplary inter-personal skills, and the ability to work with a dynamic environment which thrives on change. Experience working in the recording or technology industry is highly desired.
Administrative Assistant - Job Duties
 Use computers for various applications, such as database management or word processing.
 Answer telephones and give information to callers, take messages, or transfer calls to appropriate individuals.
 Create, maintain, and enter information into database.
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 Operate office equipment, such as fax machines, copiers, or phone systems and arrange for repairs when equipment malfunctions.
 Attending meetings and record attendance, time, and meeting content
 Make copies of correspondence or other printed material.
 File and retrieve corporate documents, records, and reports.
Worker Specifications
Anyone or any combination of the following types of preparation: (a) credit for college training leading to a major or concentration in a Business Field or closely related field.
Or
Five years of work experience as a professional staff members supporting mid to top level management in a fast pace industry.
Information Technology Project Manager
The Information Technology Project Manager needs to be able to plan, initiate, and manage information technology (IT) projects. In addition to the technical capabilities of the software engineer, the project manager must possess the ability to effectively lead and manage technical terms, lead and guide the work of technical staff, and serve as a liaison between business and technical aspects of projects. Plan project stages and assess business implications for each stage. Monitor progress to assure deadlines, standards, and cost targets are met.
Information Technology Project Manager – Job Duties
 Manage project execution to ensure adherence to budget, schedule, and scope.
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 Develop or update project plans for information technology projects, including information such as project technologies, systems information specifications, schedules, funding.
 Monitor or track project milestones and deliverables.
 Confer with project personnel to identify and resolve problems.
 Prepare project status reports by collecting, analyzing, and summarizing information and trends.
 Assign duties, responsibilities, and spans of authority to project personnel.
 Establish and execute a project communication plan
Information Technology Project Manager – Knowledge
 Knowledge on computers and electronics such as processors, chips, electronic equipment, computer hardware and software.
 Knowledge of arithmetic, algebra, statistics and their applications to correlate with the digital music age.
 Position calls for the knowledge of customer and personal services such as, including meeting quality standards for the digital music industry.
 Knowledge of media production, communication and dissemination technique and methods. This includes alternative ways to inform and entertain via written, oral, and visual media.
Worker Specifications
Anyone or any combination of the following types of preparation (a) MBA Degree in Information Technology Studies or a related field in Project Management.
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Or
A minimum of five of years of consecutive service in the IT field / Project Management with a four year degree from an accredited institution.
Marketing Director
The marketing director formulates, directs, and coordinates all E-sonic activities. The marketing director uses insight from the creative and copy writing staff to design E-Sonic’s overall marketing strategy. This position reports directly to E-Sonic’s CEO and top management team, advising firm executives regarding promotion strategies.
Marketing Director – Job Description
 Formulate, direct and coordinate marking activities and policies to promote products and services, working with advertising and promotion managers.
 Identify, develop, or evaluate marketing strategies based on knowledge of establishment objectives, market characteristics and cost and mark up factors
 Work closely with the HR Dept. on the hiring, training, or performance evaluations of marketing and sales staff.
 Develop pricing strategies, balancing firm objectives and customer satisfaction.
 Use sales forecasting or strategic planning to ensure the sale and profitability of products, lines, or services, analyzing business developments and monitoring market trends.
 Initiate market research studies or analyze their findings.
Worker Specifications
Any one or any combination of the following types of preparation:
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(a) A MBA in Marketing or a related field in correlation with the marketing industry. A minimum of five years of experience related in top level management in marketing.
(b) A Bachelor’s Degree from an accredited institution in marketing with a minimum of seven years of experience related in top level management in marketing. Certification such as market research and market analysis in addition to a four year degree is preferable but not required.
Customer Service Agent
The customer service agent confers with E-Sonic clients via telephone, e-mail, and live web chats; providing information about E-Sonic’s products and services, opening and canceling customer accounts, and keeping records of complaints. All customer service representatives report to the director of customer service. This position requires excellent client relation skills, attention to detail, and some experience dealing with customer related concerns in a business environment.
Customer Service Representatives– Job Description
 Confer with customers by telephone or in person to provide information about products or services, take or enter orders, cancel accounts, or obtain details of complaints.
 Check to ensure that appropriate changes were made to resolve customer’s problems.
 Resolve customer’s service or bills complaints by performing activities such as exchanging merchandise, refunding or adjusting billing concerns.
 Refer unresolved customer grievances to designated departments for further investigation.
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 Keep records of customer interactions or transactions, recording details of inquiries, complaints, or comments, as well as actions taken.
Work Specifications
This position calls for the minimum of a high school diploma or equivalent education. Experience in work-related skills, knowledge, or experience is preferred such as previous customer engagement roles.
E-Sonic Job Structure
Compensable factors – Administrative Assistant
Knowledge
Skills
Abilities
Administrative knowledge (Universal)
Time Management Skills (Universal)
Writing abilities (Universal)
Computer Application knowledge (Universal)
Multi-tasking skills (Universal)
Oral comprehension abilities (Universal)
CEO
Marketing Director
Director of Market Analysis
Market Research Analysist
Creative Director
Copy Writer
Director of Customer Service
Office Manager
Executive Assisstant
Adminstraive Asistance
Customer Service Agent
Director of Software Development
Software Project Manager
Software Testing
Software Enginering
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Budgeting knowledge
Critical thinking
Written expression on an online platform
Online music industry knowledge
Online music search skills
Financial analysis abilities focusing online platform
Determination of Weight each Compensable Factor – Administrative Assistant
Compensable Factor
Relative Percentage Value
Admin & Management Knowledge
30%
Computer Application Knowledge
30%
Time Management Skills
20%
Writing Ability
10%
Online Music Industry Knowledge
5%
Financial Analysis Abilities
5%
Compensable Factors – Information Technology Project Manager
Knowledge
Skills
Abilities
Computer knowledge; including information security, database management, and application development
Critical thinking
Inductive reasoning to find reasoning on unrelated events.
Knowledgeable in mid-level math including arithmetic, geometry, and statistics.
Monitoring performance of yourself and individuals and/or the organizations
Oral and written comprehension
Communication and media knowledge on the basis of technological techniques and Methods in the digital music industry
Coordination of projects and information on an online platform
Problem sensitivity on product, consumer, and online data bases
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Determination of Weight each Compensable Factor – IT Project Manager
Compensable Factor
Relative Percentage Value
Computer Knowledge
30%
Coordinate Projects on an online platform
30%
Oral & Written Compensation
20%
Critical Thinking Skills
10%
Problem Sensitivity
5%
Inductive Reasoning
5%
Compensable Factors - Marketing Director
Knowledge
Skills
Abilities
Computer knowledge, including online trends and techniques to market using f-commerce, or e-commerce format
Multi-tasking skills
Oral and written comprehension
Online music industry
Coordination of projects and information on an online platform
Forecast market trends
Internet and new media
Organizational Leadership including management, and marketing analysis
Deductive and Inductive reasoning
Determination of Weight each Compensable Factor – Marketing Director
Compensable Factor
Relative Percentage Value
Computer knowledge
20%
Multi-task skills
20%
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Coordination of projects and information on an online platform
20%
Ability to forecast market trends
20%
Organizational leadership skills
10%
Oral and written comprehension
10%
Compensable Factors – Customer Service Agent
Knowledge
Skills
Abilities
Computer knowledge on basic skills including file transmissions and open communication
Active listening skills
Oral and written comprehension
Product knowledge based on the digital music industry
Service orientation
Speech clarity
Knowledge on principles and processes for providing customer and personal services.
Persuading others to change their minds or behaviors.
Written expression and written comprehension
Determination of Weight each Compensable Factor – Customer Service Agent
Compensable Factor
Relative Percentage Value
Administrative Knowledge
30%
Knowledge of principles and processes for providing customer and personal services
20%
Service orientation skills
20%
Oral and written comprehension abilities
20%
Active listening skills
10%
Administrative Assistant
Compensable Factor
Total
Degree
1
2
3
4
5
6
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Admin & Management Knowledge
62.5
75 93.75
125
187.5
375
93.75
Computer Application Knowledge
62.5
75 93.75
125
187.5
375
93.75
Time Management Skills
41.6667
50
62.5 83.3333
125
250
83.3333
Writing Ability
20.8333
25 31.25
41.6667
62.5
125
31.25
Online Music Industry Knowledge
10.4167 12.5
15.625
20.8333
31.25
62.5
12.50
Financial Analysis Abilities 10.4167
12.5
15.625
20.8333
31.25
62.5
10.4167
Total Points: Administrative Assistant: 93.75 + 93.75 + 83.33 + 31.25 + 12.50 + 10.42 = 325
Information Technology Project Manager
Compensable Factor
Total
Degree
1
2
3
4
5
6
Computer Knowledge
62.5
75
93.75
125 187.5
375
187.50
Ability to Coordinate Projects
62.5
75
93.75
125 187.5
375
187.50
Oral & Written Compensation
41.6667
50
62.5 83.3333
125
250
83.3333
Critical Thinking Skills
20.8333
25
31.25
41.6667 62.5
125
62.50
Problem Sensitivity
10.4167
12.5
15.625
20.8333 31.25
62.5
31.25
Inductive Reasoning
10.4167
12.5
15.625
20.8333 31.25
62.5
31.25
Total Points: IT Project Manager: 187.50 + 187.50 + 83.3333 + 62.50 + 31.25 + 31.25 = 583.33
Marketing Director
Compensable Factor
Total
Degree
1
2
3
4
5
6
Computer Knowledge
41.66667
50
62.5
83.33333 125
250
125
Multi-Task Skills
41.66667
50
62.5
83.33333 125
250
125
Coordination Projects
41.66667
50
62.5
83.33333
125 250
250
Ability Forecast Market Trends
41.66667
50
62.5
83.33333
125 250
250
Organizational Leadership Skills
20.83333
25
31.25
41.66667
62.5 125
125
Oral and Written Comprehension
20.83333
25
31.25
41.66667
62.5 125
125
Total Points: Marketing Director: 125 + 125 + 250 + 250 + 125 + 125 = 1,000
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Customer Service Agent
Compensable Factor
Total
Degree
1
2
3
4
5
6
Administrative Knowledge
62.5 75
93.75
125
187.5
375
75
Principles and process
41.6667 50
62.5
83.3333
125
250
50
Service orientation Skills
41.6667
50
62.5 83.3333
125
250
83.3333
Oral and written comprehension abilities
41.6667 50
62.5
83.3333
125
250
50
Active listening skills
20.8333
25 31.25
41.6667
62.5
125
31.25
Total Points: Customer Service Agent: 75 + 50 + 83.3333 + 50 + 31.25 = 289.58
Rank Jobs at E-Sonic
Administrative
Sales and Marketing
Operations / MS / IT
Administrative Assistant (325)
Marketing Director (1,000)
IT Project Manager (583.33)
Customer Service Agent (298.58)
Determination of Pay Policy Mix
One of the first steps is to take a survey of what other competitors are paying their employees. Important that E-Sonic does not over compensated their employees. This is crucial since an organizations labor force is one the most expensive factors for an organization to operate. In today’s market it seems that often times benefit packages are costing employers more and more. This is often contributed to the rising cost of benefits that as require level of health insurance and the ever rising cost of health programs.
A respectable mix will include a base pay, benefit cost, a short-term and long term incentives. A base pay entails an individual’s base hourly rate, or annual salary without any of benefits or incentives included into the total. An added benefit package can include child care,
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health care, and other sources of benefits. These can involve either discretionary or legally required benefits. A short term incentive can include bonuses paid to E-Sonics staff above and beyond their base salary. A long term incentive consist of incentives that motivate staff to continue to produce at high levels for a long period of time
Benefit expenses add an additional cost to the compensation package that E-sonic is going to inherit when coming up with a plan. These plans include paid leave, insurance, retirement and savings. According to the U.S. Bureau of Labor Statistic, on average a private industry employer costs averages $2.54 per hour worked for insurance benefits (United States Department of Labor, 2015). The national average for wages and salaries averaged $21.72 per hour (United States Department of Labor, 2015). This indicates that on the on average the total amount paid out by employers to staff was in the range of 69.4 percent of their total cost, with 30.6 percent for benefits.
Stock purchasing often allows employees to either purchase at a reduced price than the market price. It also, at times, allows them to purchase stock at a locked price to increase profits for the employee. Profit sharing consists of a percentage of firms profits distributed to participating employees. It’s important that E-Sonic gives a clear description and also notifies positions that are eligible and not eligible of this partition of their benefit package. When all these items are combined together a competitive compensation can be created.
Pay Policy Mix – Administrative Assistant
The administrative assistant position that we are looking to compensate at E-sonic is going to be considered a level I assistant. We came up with this conclusion from the previous research conducted that laid out the benchmarks and job descriptions of this position. We
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concluded that this position would require a total of 325 points in the compensable factors. An administrative assistant with a factor above that number is considered an II or III depending on the margin it falls under. According to Salary Wizard, the base pay of an administrative assistant is $18.00 an hour with the yearly salary consisting of $37,492.
This position doesn’t allocate itself to long term incentives such as profit sharing and vesting in company stock options. It does, however, consist of yearly bonuses based on the criteria of their management in form of an annual bonuses consisting of $300 to $500. Since this position is considered a regular full time position a benefit package which entails health insurance coverage is also available to the employee. The total contribution of this employee cannot exceed more than 9.8% of their total household gross income, according to federal law.
Pay Policy Mix – Information Technology Project Manager
The role of our IT Project Manager is a major contributor to the success of E-Sonics success. This position calls for a 583.33 points in their compensation factor. These numbers need to be adopted into creating a compensation package. The base pay of an IT Project should
69.40%
25%
4%
0.60%
Compensation
Base Pay
Benefit Pay
Long-Term Incentives
Short-Term Incentives
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surpass the salary of an entry level. The median hourly rate for this position is $36.00 with a total yearly salary of $75,057. The top 10% on average base salary is $101,000 a year. Bonuses for this project range between $2,000 and $3,000 a year based on performance of both the organization and positon.
The proposed base salary for this position should be 78,000 with the possible if additions of bonus. This position should also be entitled to a percentage of what the total amount is going to be designated for profit sharing. Since it’s a mid to high level management position it’s crucial that retention is taking in to consideration with this position. It also adds a sense of security to the employee by adding profit sharing. It can reduce waste and increase productivity
Pay Policy Mix – Marketing Director
Every position at E-Sonic is crucial to the success of E sonic meeting its organization’s goals and objectives. The position of Marketing Director plays a vital role ensuring that E-sonic remains a step ahead of our competitors. This position calls for a lot of responsibility and ranks at 1,000 out of 1,250 total points in the compensable factor. This position calls for a base pay at a salary rate of $130,000 as the median in Manchester, New Hampshire. This position should
69.40%
25.00%
2.50%
0.60%
Compensation
Base Pay
Benefit Pay
Short-Term Incentives
Long-Term Incentives
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entail a long term incentive in the form of stock purchasing options and profit sharing. Since this position is ranked high in our job structure the percentage of long term incentive should be highly considerably higher than lower ranking positions. Short term incentives can range between 5-15% of their total yearly compensation (Glassdoor, 2015).
Pay Policy Mix – Customer Service Representative
The customer service agents help E-sonic communicate and solve and concerns that customers may have. They need to be knowledge have service orientated skills and be able to use critical thinking skills to meet the demand of our customer base. This position is ranked at 289.58 points for an entry level position with three capable promotion levels within the same job title. Median salary of a customer service representative is $32,353. On average they not receive long term incentives but often share short incentives such as bonuses that range between $300 and $500. The benefit package associated with this position often tends to be minimum and consist of contributions of its staff in the form of a percentage of their total base pay towards health insurance.
50%
30%
5%
15%
Compensation
Base Pay
Benefit Pay
Short-Term Incentives
Long-Term Incentives
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Pay – Policy Level Decisions
E-Sonic is located in Manchester, New Hampshire. New Hampshire has a strong labor force with the unemployment rate at 3.9 % which is lower the national average (Security, 2015). E-Sonic should pay its staff at what the market price is calling for. I think adjustments should be made to wages among the discrepancy of the hiring manager and the Human Resource Department. If E-sonic wants to save some money based on our market analysis I think it could reduce the average base pay for lower ranking positions such as administrative assistant and customer service associate. I don’t think they would need to pay more for higher ranking positions due to the state statics and what other organizations such as; Stoney field yogurt, Deacon, and Velcro pays for the same positions. Although these companies are in a different sector, there presence of a music producing organization is Absolut in the state of New Hampshire. Its comparable are companies with the same size of staff with the volume of total revenue.
External Market Survey Marketing and Sales
69%
30%
0%
1%
Compensation
Base Pay
Benefit Pay
Long-Term Incentives
Short-Term Incentives
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Job
Minimum
1st Quartile
Average
Median
3rd Quartile
Maximum
Market Research Analyst
45,075.80
48,747.81
51,351.22
51,202.79
53,674.86
58,993.59
Artist Relationship Manager
55,120.25
60,434.83
64,443.70
64,452.84
68,082.58
75,028.03
Creative Director
65,388.06
73,567.79
80,151.40
80,260.97
86,262.97
96,348.26
Director of Market Analysis
70,283.08
77,969.16
83,051.70
82,797.91
87,846.71
96,395.48
Marketing Director
40,165.76
46,035.11
53,136.13
52,282.20
59,607.57
69,639.22
External Market Survey Information Technology
Job
Minimum
1st Quartile
Average
Median
3rd Quartile
Maximum
Software Testing Specialist
35,304.81
46,985.43
58,441.18
57,089.25
70,782.24
85,820.67
Software Engineer
55,120.25
64,460.70
73,747.70
72,857.35
82,770.01
96,395.48
Software Project Manager
35,094.46
43,708.06
52,475.92
51,325.47
60,840.00
75,072.02
Director of Software Development
65,388.06
88,733.55
114,150.99
114,680.13
140,019.83
160,933.47
External Market Survey – Customer Service
Job
Minimum
1st Quartile
Average
Median
3rd Quartile
Maximum
Customer Service Agent
35,243.71
38,100.29
40,208.75
40,249.19
42,373.25
46,113.89
Director of Customer Service
59,103.77
63,618.16
66,722.51
66,700.44
69,646.64
75,022.66
External Market Survey – Administrative Assistant
Final Project Final Milestone 27
Job
Minimum
1st Quartile
Average
Median
3rd Quartile
Maximum
Copy Writer
35,243.71
38,100.29
40,208.75
40,249.19
42,373.25
46,113.89
Office Manager
43,137.63
50,347.63
57,232.60
56,752.55
63,574.09
75,022.66
Conclusion
I used many different outlets to gather all the information needed to compile this paper together. This package is designed to give E-sonic a perspective on how to draft and create a paper that will give them a competitive advantage above their competitors. I used the strategic approach on gathering my information by following an array of steps to ensure that I was not creating a package that was compatible the industry and market that E-sonic is associated with. I reached dilemmas when creating the weight among positions and using a point method system to different position by responsibility, task, skills, knowledge needed.
The importance of conducting my research I ran into the dilemma of finding expired information. Since compensation rates, CPI, and pay scales are always evolving it’s important to find accurate and up to date information available. Although historical information was used to determine and predict future market trends, the basis of this paper was to conduct research on the current market to apply it to a competitive compensation package. I used my research to find out information that I was not sure about an example of this was the changing CPI numbers that are posted by the U.S. Federal Government. I also had to research market value since pay scales differ from state to state and often times from city to city.
The research conducted allowed me to view information from competitors ranging in sizes from Apple, Amazon and other smaller file sharing programs such as torrent databases. Since the internet is always evolving I needed ensure that the position listed were positions that
Final Project Final Milestone 28
were going to be suited for the job duties that would align with the success of E-sonic. In conducting my research I also discovered the importance of the amount of communication that has to be followed by both management and staff. When a job description is written it needs to comprehensible to the party reading the information. A clear description leads to a path for that individual to complete the task at hand with the resources he is provided with.
I utilized my analytical skills throughout conducting my research. When drafting a point system I need to often go back to revise the weight of the factors that I found appropriate for that position. I had to make a decision on what was the best and beneficial format to follow to not only benefit E-sonic but also to allow a fair opportunity for the candidate filling the position. As with any package there is always going to be constant revision to fine tune the compensation package to be accurate and fair to both parties.
The purpose of this paper was not only to design a package to be presented to E-sonic management to solve the issues of creating new and competitive compensation packages for positions needed in the expansion of E-sonic. It took multiple outlines to ensure that we met all the criteria needed. A large amount of research conducted from multiple sources and also a critical thinking to piece it together to come up with the competitive compensation packages that aligns with the executive summary of E-sonic and helps them succeed in the future.
Final Project Final Milestone 29
References
Elmer-Dewitt, P. (2013, 07 21). Time Inc. Retrieved 03 26, 2015, from Fortune Website: http://fortune.com/2013/07/21/how-much-revenue-did-itunes-generate-for-apple-last-quarter/
Glassdoor. (2015). Glassdoor, Inc. Retrieved 04 17, 2015, from http://www.glassdoor.com/Salaries/marketing-director-salary-SRCH_KO0,18.htm
Job Descriptions. (2003, 01). Information Management Journal, 37(1), 406-407.
Kusek , D. , & Leonhard, G. (2015). Berklee School of Music. Retrieved 03 24, 2015, from http://online.berklee.edu/store/product?product_id=2583359&usca_p=t
North American Industry Classification System (NAICS). (2013, 05 13). U.S. Census Bureau | North American Industry Classification System (NAICS). Retrieved 03 26, 2015, from U.S. Department of Commerce: http://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=512210&search=2012%20NAICS%20Search
Pfanner, E. (2013, 02 26). The New York Company. Retrieved 03 26, 2015, from New York Times: http://www.nytimes.com/2013/02/27/technology/music-industry-records-first-revenue-increase-since-1999.html?_r=0
Security, N. H. (2015, 04 14). New Hampshire Employment Security (NHES). Retrieved from http://www.nhes.nh.gov/elmi/statistics/documents/nr-current.pdf
United States Department of Labor. (2015, 03 11). Bureau of Labor Statistic. Retrieved from http://www.bls.gov/news.release/ecec.nr0.htm
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