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Caitlin Erwin

on 12 March 2014

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CHEWP Compensation Specialists
Brenda Pyzik, Julie Hardman, Caitlin Erwin, Jingtong Chen, Zheng Wang

Duplox Copiers Canada Limited
CHEWP Compensation Specialists have developed a compensation system for Duplox Copiers Canada Limited that will improve the overall efficiency of the firm. Through analysis of the current conditions at Duplox, a number of recommendations were made which led to the development of a reward and compensation strategy which will create positive changes within Duplox.
Job Evaluation Plan
Market Survey
Duplox Job Families
Job Evaluation Compensation Strategy
Job Evaluation Pay Structure
Current Problems
High turnover
Decreased productivity
Decreased quality of onsite service
Declining sales
Reward dissatifisfaction (low expectancy)
Lack of organizational commitment and membership behaviour
CHEWP Objectives
Change managerial strategy from Classical to High Involvement
Increase membership and citizenship behaviours
Increase affective and organizational commitment
Increase support between departments
Broaden Technical Service Specalist (TSS) jobs by reducing control and restrictions
Improve overall efficency at Duplox
Apply a job evaluation system
Develop an effective pay structure
Create a Pay-For-Knowledge system for TSS staff
Sales Staff
Sales Representative
Professional, Administrative, and Support Staff
Technical Staff
Technical Services Specialist I (1000, 2000, 3000, 4000)
Technical Services Specialist II (1000, 2000, 3000, 4000)
Technical Services Specialist III (1000, 2000, 3000, 4000)
The value of the job is expressed in monetary terms
It can be applied to a wide range of jobs
It can be applied to newly created jobs
Points are subjective
Built-in biases
Comparator Firms
Benchmark Jobs
Average Mean Total Compensation
Offers a more accurate representation of the market for evaluative purposes
Provides equal understanding of the impact of smaller and larger firms as well as national and provincial firms.
Overlap of Pay Grades
There will be five pay grades in Duplox's new pay structure
The total point range is 150 to 950 which will provide Duplox with optimal flexibility
0-149 & 951 - 1000 are excluded from the pay structure
Number of Pay Grades
Each pay grade over laps approximately 5% with the grade directly before and after it
This 5% will reduce conflict among jobs that are close to the boundaries of each pay grade
Overlap does not exceed the 5% to avoid employee inequity
Based on Jim Harvey's speech structures
Managerial Staff
Branch Sales Manager
Branch Service Manager
Compensation Manager
Director of Human Resources
Director of Marketing
Director of Technical Services
Director of Technical Training & Support Services
Field Service Manager
Manager of Branch Inventories
Regional Sales Manager
Jobs compensated via job evaluation
Job compensated via job evaluation
Jobs compensated via job evaluation
Branch Inventory Clerk
Compensation Clerk
Compensation Officer
Inventory Clerk
Sales Training Specialist
Training/Support Specialist
Advertising and Product Promotion Specialist
Jobs compensated via Pay-for-Knowledge
Represents an accurate high-involvement compensation strategy
Improved customer experience
Increased citizenship behaviour
Greater interdependence between managerial staff
Increase in affective and organizational commitment
Increase of membership behaviour

Greater interdependence will be achieved through:
Goal-sharing (group performance pay)
Profit-sharing (organizational performance pay)

Represents an accurate high-involvement compensation strategy
Focus on and increase in sales
Better customer experience
Increased citizenship behaviour, cooperation between sales and other departments
Greater membership behaviour and affective commitment

commission (individual performance pay)
goal-sharing (group performance pay)
Professional, Administrative, & Support Staff

Represents an accurate high-involvement compensation strategy
An increase in membership behaviour, organizational and affective commitment
Increased citizenship behaviour, improve cooperation with other staff/departments
Improved customer experience

A limited focus on organizational performance pay (profit-sharing).
Size of Pay Grades
Telescopic approach: the points spread increases by an unequal amount
Allows pay grade size to be based on point totals and job type
Movement Through the Pay Grade
Allows for control but also flexibility
You have control over new employees through step method
After midpoint employment raises are granted based on performance

Utility Analysis
Leading Compensation Policy:
Managerial Staff lead the market
Help to improve retention of top quality management

Matching Compensation Policy:
Support and Sales Staff match the market
They will be promoted by internal incentives
Duplox will remain cost competitive
Matching is sufficient for the jobs included
Pay-for-Knowledge Structure
Pricing the Skill Blocks
The difference between the top job and the low job is $30,000
Which is then distributed through the skill grid
Each row is compensated at a different rate because as you progress through the skill grid the competencies required become more complex
Implementation Results
Duplox is a more efficient and productive organization
Organizational practices are now aligned with a high involvement managerial strategy
Decrease in employee turnover and dissatisfaction
Overall, a more successful organization!
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