Market data analysis
Pay policy mixes
Remuneration is one of the areas where companies compete to attract and retain top talents. Like all others, e-sonic is aware of this and has packages which it intends to keep up to date with the market rates. More so, the company is in the business field where the competition for top talent is high. The following table is a breakdown of the pay packages it offers to its employees.
|Occupation title||Hourly wage||Annual wage|
|General manager, marketing||$42||$116,000|
|General manager, advertising||$42||$116,000|
|General manager, public relations||$42||$116,000|
|General manager, finance||$42||$116,000|
|Public relations manager||$37||$109,000|
|Computer and information system manager||$56||$118,000|
|Human resource manager||$37||$109,000|
|Training and development manager||$37||109,000|
The rates include those of the top management teams. Although they are not the best in the market, they rate top in organizations that fall in the same category. Further, e-Sonic is an equal opportunity employer. The rates are the same irrespective of the gender of the office holder. At the same time, the organization has a structure that endeavors to make employees working in positions with a similar ranking to have an equal pay.
External market review
According to the US Labor statistics, e-Sonic is slightly below the market arts. Top among the reason for this is the size of the company. The company is medium sized and has a long way to go as it fights to get up the ladder. Multinationals and established firms with better balanced sheets have better rates. It is the same rates that have made the mean get high. The same firms hunt for top talents and thus their reason for remaining competitive in the market. The following includes the national rates for the listed positions.
|Occupation title||Hourly wage||Annual wage|
|General manager, marketing||$59.15||$123,030|
|General manager, advertising||$59.15||$123,030|
|General manager, public relations||$59.15||$123,030|
|General manager, finance||$59.15||$123,030|
|Public relations manager||$68.91||$143,330|
|Computer and information system manager||$75.19||$156,390|
|Human resource manager||$62.29
|Training and development manager||$59.36||$123,470|
Source: bureau of labor statistics
Despite having locations in different states, e-sonic has a harmonious pay scale for its employees. The rationale for this is that the employees move from one state to another over time depending on job allocation. When the scale is different, conflict is likely to occur. For example, when an employee is moved from one state where the pay is high to another where there is a different scale lower than the original, they are likely to have negative reactions. It would be one source of demotivating factors for the employee. Further, it may be one of the contributing factors to high rates of employee exits from the organization. However, the organization is aware of the differences in the cost of living in different states. As a way of ensuring that the employees who live in states with high cost of living do not feel short changed, the benefits are scheduled to cover. For example, the employees living in New Jersey get high housing and transport allowance due to the high cost of living. Similarly, the cost of living in Alaska is equally high and thus benefits and allowances are also high. Therefore, while there is a harmonized pay for all the employees in the organization, the benefits and allowances vary depending on location.
In many aspects, the salaries would match the benchmark jobs. Although it appears to be lower than the national mean, the scale used by the national labor statistics includes hundreds of small and medium enterprises. The vast majority of them fall into the lower quartile of the mean. Further, they employ a significant percentage of the employees in the labor market. Although there are exceptions where the founders double as the chief executive officers, many of them have hired qualified professionals to manage their organizations. However, financial constraints have made it hard for them to target top talent.
Experience and talent
The pay grades are relatively high going by the ranking of the firm. Many other organizations its size and in similar areas of operations are lower in their salary scales. It is also established that high salary scales translate to attraction of top talent. Therefore, the high salary scales at e-Sonic is part of its strategy to attract top talent in the labor market. The same is evident when the firm has advertised to hire. New entrants in the labor market from school have been interested to work at the organization. Similarly, old and experienced employees seek to work in the organization continuously. However, the industry dynamics demand that the organization has a balance between experienced and new talents. As a way of meeting this requirement, the organization goes for the experienced candidates when recruiting for the top positions. Additionally, the middle management positions are reserved for the new entrants in the market. It is from this positions that the organization grooms them for the top positions. It also explains why there is a fully functioning talent management department exists in the organization.
The company is cognizant of the changes in price indices. Therefore, there are adjustments for the salaries on an annual basis depending on the inflation. According to bureau labor of statistics, the CPI rose 1.2% over the last twelve months. The rate is not seasonally adjusted. The following table has the salaries before and after adjustment.
|Occupation title||Hourly wage||Annual wage||Updated salary at 1.2% CPI|
|General manager, marketing||$42||$116,000||$117,392|
|General manager, advertising||$42||$116,000||$117,392|
|General manager, public relations||$42||$116,000||$117,392|
|General manager, finance||$42||$116,000||$117,392|
|Public relations manager||$37||$109,000||$110,308|
|Computer and information system manager||$56||$118,000||$119,416|
|Human resource manager||$37||$109,000||$110,308|
|Training and development manager||$37||109,000||$110,308|
According to the market rates, the salary grades are below average. Although it is neither logical nor possible to meet the average at the moment, e-Sonic has intentions of implementing upgrades to attract experience and talent from the labor market. The upgrades will be across the whole organization. However, the main focus remains with the top management as it is here that leadership is expected to steer the organization. The following table shows the expected upgrades which is a 7.5% of the current rates.
|Occupation title||Hourly wage||Annual wage||7.5% upgrade|
|General manager, marketing||$42||$116,000||$124,700|
|General manager, advertising||$42||$116,000||$124,700|
|General manager, public relations||$42||$116,000||$124,700|
|General manager, finance||$42||$116,000||$124,700|
|Public relations manager||$37||$109,000||$117,175|
|Computer and information system manager||$56||$118,000||$126,850|
|Human resource manager||$37||$109,000||$117,175|
|Training and development manager||$37||109,000||$117,175|
The top management got a similar upgrade since a difference may have created discontent. Additionally, it is the same reason why employees holding similar positions get same wage rates. The current CEO position is intended to keep the current office holder at the organization. Due to good performance, there are fears that headhunting by larger firms may happen. Similarly, the attractive rates for the general managers are also a tool for fending head hunters off. It is the belief of the organization that the firm will remain competitive in the industry and attract both talent and experience.
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