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Building a Pay Structure Essay

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The following in an analysis of the overhaul of the pay structure for the non-union jobs at HealthRx (the

CEO position is also excluded). Our method for doing so follows the “Pay Structure” outline. Job evaluation

points of relevant benchmark jobs at HealthRx are indicated in the column labeled (Points (X) on the attached

Excel document. Market rates, from a pay survey analysis conducted by HealthRx, for jobs not included in case

2, are indicated in the next column. Rates from case 2 to complete the column.

Job evaluation points were used as X data; survey rates were used as Y data. A regression analysis to

Determine a market pay line, or “pay policy line” (PPL) is also provided through the …show more content…

In smaller organizations, such as HealthRx it is sometimes difficult to get pay ranges

above around 35%- 40% without creating a great deal of overlap. It is appropriate to use different percentages for

different grades.
The attached Excel document displays grades 14 through 18, which are clerical type positions. These
Positions consist of the Mailroom Clerk, Billing Clerk, Center Secretary, Accounts Receivable Specialist, and the
Purchasing Agent. Grades 14- 18 are clerical type positions and therefore received a 35% range factor. No more than a two grade overlap occurred amongst these positions, which is acceptable in these parameters.
Grades 19-24 were middle management type positions and therefore received a slightly higher percentage range factor of 38%. The majority of the company falls in to this range. These positions consisted of the
Telecommunications Analyst, Programmer, General Accountant, Benefits Specialist, Tax Accountant,
Compensation Analyst, Human Resource Generalist, Regulatory Analyst, Purchasing Manager, Nurse Practitioner,
Reimbursement Manager, Accounting Manager, Compensation and Benefits Manager, and the Information
Systems Manager. An overlap of three to four grades occurred amongst these positions; the reason being because jobs are much more specialized at these higher level positions creating a greater pool of talent ranges.
Grades 25-28 were higher-end management positions and

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