Pay-Policy Levels for E-sonic Jobs
Pay policies are the criterion used by deferent firms to award compensation for their employees. There are various factors that are considered when determining various levels of compensation within a firm or a specific business field. Compensation factor is an important aspect to any company as it is a key determinant of how the business performs. Operations such as decision making is a crucial thing which is done from the higher ranks of the leadership organization and which, is mainly aimed at maintaining the company’s competitiveness in a particular field ( Martocchio, 2011). For that reason, e-sonic employees should have an intrinsic reward program, which is a known motivator for employees to perform much more than usual. This guarantees the company an increase in productivity as well as profitability as these employees have a sense of belonging, thus employing their skill and techniques to maximize their production to boost the company. E-sonic’s sales and marketing team as well as development department enjoy a wide range of intrinsic rewards as their contribution is the pillar for the company. This means that when these groups of contribution depends on their level of satisfaction that they get from the company. The administrative team enjoys a higher pay which is a norm. This is the group which oversees the operations as well as tasked with decision making which is very crucial for the company too. Artists are the lowest paid group. However, as the artist gain more and more experience, they are subject to higher pay and rewards to maintain them.
External Market Review
Just like any other business, E-sonic faces external competition from other service providers such as iTunes, by Apple Inc., and Prime music from Amazon. In comparison to its key competitor in compensation, iTune pays a product manager a salary of $149,009/annum; Prime music pays $144,032/ annum while E-sonic pays $98,517/ annum for the same position all in New Yolk City (Landers, Brusso & Auer, 2019).
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Depending on the location of the E-sonic branches, employees’ pay varies due to varied cost of living in these areas. This is meant to equalize the overall livelihood of the employees regardless of the profile of the region they are assigned (Files, A. C. P. I. S. 2019). Similarly, the same trend is seen to apply with the rival companies as everyone is in the race to retain the best of their workers as well as maximizing their productivity. According to the job position that I searched for, that is product manager, it doesn’t suit a benchmark job as it would require an advanced knowledge and experience to fill the position.
The current inflation rate in U.S is estimated to be 2.5% for the 12 months ended in January 2020. Thus for each of the position, the compensation would require an additional 2.5% of the total compensation to balance the inflation rate ( Lambert, 2018).
Consumer Price Index in Urban areas
Implement Salary Survey Results
a)
| Position/grade | Internal market ($) | External market ($) |
| Product manager (6) | 144,023 | 149,009 |
| Sales and marketing (5) | 93,000 | 120,000 |
| Artists (4) | 69,000 | 90,000 |
b) For pay grade 6, it entails a higher rank which involves major decision making as far as a product is concerned. The holder of the position is responsible for all the actions undertaken under the production category. These responsibilities qualify the holder of the position for a higher pay. Pay grade 5 entails the crucial work for the company’s revenue thus; the pay is slightly below the top managers, but also above the artists’ pay. Artists are the lowest paid group. They work under the instruction and supervision of higher positions thus no major independent decisions can be made from their end.
References
Files, A. C. P. I. S. (2019). US Bureau of Labor Statistics.
Lambert, M. (2018). The impact of external market conditions on real options valuation.
Landers, R. N., Brusso, R. C., & Auer, E. M. (2019). Crowdsourcing Job Satisfaction Data: Examining the Construct Validity of Glassdoor. com Ratings. Personnel Assessment and Decisions, 5(3), 6.
Martocchio, J. J. (2011). Strategic compensation: A human resource management approach. Pearson Education India.
