ANALYZING A WAGE SURVEY

In this exercise you will be asked to make decisions about what your organization should pay employees in four different job titles. The positions to be considered are Cashier, General Office Clerk, Secretary I, and Secretary II.

Your company is currently experiencing a high level of turnover in these positions. In an attempt to find answers to the turnover problem, the company conducted a market pay survey of its chief labor market competitors in the surrounding geographic area. The results of the market pay survey appear in Exhibits 1 and 2. Currently, your company is paying the following hourly rates for these positions:

• Cashier - $5.96
• General Office Clerk - $5.75
• Secretary I - $6.00
• Secretary II - $6.50

Utilizing the information provided in Exhibits 1 and 2 and the hourly rates your company pays for these positions, decide whether pay is a possible contributing factor to the current turnover problem. If pay appears to be a possible contributor, propose a solution to deal with the pay problem. Detail your conclusions in a memo addressed to the HR Director. In the memo, identify the problem positions, the implications of keeping the hourly rates stable (at current rates), your suggested changes to the hourly rates, and the benefits you anticipate based on your recommendations. Prior to completing the exercise you should read the sections of your chapter related to making pay decisions, and interpreting market rate survey data, as the information will helpful for completing this exercise.

Exhibit 1 - Clerk Positions

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Exhibit 2 - Secretary Positions

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