Write an essay explaining your new compensation strategy for the mid-level manager position you still need to fill. Your audience is the chief executive officer (CEO) and other supervisors in your organization. In this essay, include the items listed below.
1. After a brief introduction, explain how equal employment opportunity laws impact the organization’s compensation strategy.
2. Compare and contrast the advantages and disadvantages of pay-for-performance and competency-based pay. What strategy would you recommend for your organization, and why?
3. Explain how various motivational theories can factor into your development of a multi-generational compensation package for your whole organization that includes indirect benefits. Be sure to give specific examples of how different generations of applicants or employees will be affected.
4. Explain your proposed compensation package, which should include direct and indirect benefits and how the package will affect hiring and retention. Be sure to specifically identify how much you will pay the mid-level managers, and indicate how it compares to your state and the federal minimum wage. You can search the Internet for sites that list comparable pay data. You should identify a low, medium, and high pay range for the mid-level manager.
5. Explain how you will assess the effectiveness of the compensation strategy a year from now.