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Pay System Essay

1087 words - 5 pages

I. Pay System

a) Job Position - Global Sales & Trading Analyst
Industry - Investment Banking/Equities

b) National Median Wage - $ 33.02 hourly
Annual Salary - $ 68,680

c) There are considerable wage differentials for the global sales & analyst position among the different states in the United States of America. For example,

USA

National Median Wage - $ 33.02 hourly
Annual Salary - $ 68,700

New York

National Median Wage - $ 53.58 hourly
Annual Salary - $111,400

Indiana

National Median Wage - $ 36.04 hourly
Annual Salary - $ 75,000

Hawaii

National Median Wage - $ 25.02 hourly
Annual Salary - $ 52,000

From the ...view middle of the document...

The one’s standing out should be given a bonus on top of their base salary. Other incentive plans like piecework rate wouldn’t work for these jobs as no unit is actually being produced. So, there will be no way of measuring performance. Also, an important TDR related to this position is that of generating and monitoring one’s own sales ideas. The organization should provide individual bonuses to the employees who are proactive in generating different sales ideas for the firm. As this is a subjective offering by the employee rather than a physical output, again, the individual bonus incentive pay seems to be the most effective way to motivate employees in this field. Group incentive pay is not used much as a pay benefit in this position because most of the analysts work individually and have their own set of clients.

f) The individual bonus incentive pay system has its advantages and disadvantages. One of the main advantages is that the employees realize that good expected performance which is in line with the company’s objectives in getting rewarded for. For example, if it is evident that the emphasis for the bonus is on client satisfaction then all employees will work towards that. An important disadvantage of this approach is that employees who performed well in one period and got rewarded, may take the bonus for granted and reduce their performance level for the next period. An important part of the individual bonus is that the performance has to be repeated each period and hence the reason the bonus is not included in the base pay. As this job entails a general knowledge about market trading rather than actually producing a physical output the individual bonus seems to be the best fit.

II. Benefits Package

a) Health Insurance Plan

* Medical Insurance - Hospital expenses, Visit to physicians, Dental care, Vision care

b) Retirement Plan

* Cash Balance Plan

c) Paid Leave Plan

* Paid Time Off Bank- Pooling of sick, personal and vacation days.

d) Family friendly Benefits

* Family Leave
e) For the health insurance plan, I chose medical insurance as an optional benefit, which covers hospital...

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