Suppose you are a senior consultant with Canadian HR Consultants which specializes in strategic compensation consulting. You have recently been retained by an American owned logistical software business, Corporate Logistics Inc, that has decided to open an operation in London, Ontario. The company specializes in the development and implementation of specialized logistical software for the transportation industry. This will be the company's first foray into the Canadian market and one of President John Forsi's first goals is to staff the Canadian operation quickly and efficiently, as orders are already on the books. John has been with the company 10 years, is 40 years of age and has opened a number of similar operations across the US with a high level of success. John is smart. He knows that this assignment will be a challenge. He is going to want to attract staff to the Canadian operations that tend to mirror those that have been successful in the US: well educated, ambitious risk takers that are competent technically and capable of interfacing effectively with customers. He will need a number of programmers, programmer/analysts, systems analysts, project managers etc. in addition to traditional head office senior and executive staff and top flight support staff including executive and administrative assistants. The type of staff that he will be looking for will be in short supply in the Canadian market and there will be a lot of competition for their services. In the US the average age of his work force is 30. He has heard, for example, that Canadian compensation strategy may have to be quite different than what he has faced in the US, particularly as it relates to attracting the type of employees that will best fit the culture of his firm.
John has asked you for a general overview in executive summary format of how he should be viewing his compensation strategy from an internal fairness and competitive standpoint going forward.
Case Scenario Assignment 1
Write an executive summary to John Farsi, President of Corporate Logistics Inc that answers the following questions.
1. Explain in general terms what is meant by the phrase Internal Equity (Internal Alignment) and outline the reasons this will be important to John's compensation strategy.
2.Explain in general terms what is meant by the phrase External Equity (External Competitiveness and outline the reasons this will be important to John's compensation strategy.
3.What are the major processes that you will recommend that John implement in order to achieve both internal and external equity in his Canadian operations ?