Hierarchal compensation approach


Problem:

Think of joining a growing company with an employee mix of High Tech engineers and High School Diploma Construction, non-union, craft workers (i.e. welders, carpenters, etc) in addition to support employees of all levels (administrators). Your job is assuming the newly formed role as the compensation manager.

The managers of the craft workers seem to want a more egalitarian compensation system and teamwork is an important component of accomplishing the client's project.

The managers of the Engineers and Administrators appear to lean towards a more hierarchal compensation approach to personal acquired knowledge both in the classroom and on the job determines salary and promotions.

In preparing the new compensation system for the company, do you have a hierarchical approach or an egalitarian one? Or would you have both for the two employee populations? Why? Can you relate real world experience?

As the new compensation manager, you have been tasked to develop job descriptions and a job map of the company's employment positions. Your starting point is job descriptions and job families that have not changed in 20 years.

How do you justify to the board of directors the expense of undertaking a review and implementation of new, updated job descriptions? Is there a cheaper alternative? Can you share any real world experience?

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Other Management: Hierarchal compensation approach
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