Task 1- Compensation and Benefits

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Task 1- Compensation and Benefits

XYT Task 1- Compensation and Benefits

Task 1: Compensation Strategy

  • 3041.01.2: Job Evaluation – Evaluates the value of jobs and capabilities within an organization, producing a job-value structure that enables internal reward equity.
  • 3041.01.3: Market Positioning – Interprets market reward surveys to anchor pay levels and pay mixes for benchmark jobs.
  • 3041.01.4: Pay Systems  evaluates pay types and systems with consideration for their motivational foundations.


A well-thought-out compensation plan is essential in giving a company an advantage in competitive hiring markets to attract and retain a quality workforce. In this assessment, you will apply your knowledge of total rewards to create an organizational rewards structure. This structure should consider organizational strategy, HR strategy, and the external business environment.


You are the human resources manager of Endothon Company, which helps its clients eliminate paper use by automating their business processes. Endothon is implementing a new software program and faces the challenge of hiring additional staff to help sell and support the program.

The company has been in business for five years and currently has 20 employees working on a variety of software applications for clients. Endothon will likely double in size during the next six months and add even more employees by the end of the year.

The first round of hires will include three new positions: one brand manager and two product sales representatives. Because Endothon is located in a geographic area in California where the job market is ultracompetitive, recruiting quality candidates will be challenging.

Also, the organization’s partners feel that the current job-value structure and pay policy as well as the lack of a formal system of variable pay are outdated. You must define the company’s compensation strategy to allow Endothon to be competitive in the workplace and to attract and retain a quality workforce.


Note: You have been provided with the following attachments: “Brand Manager Job Description,” “Current Job-Value Structure,” “Market Rewards Survey,” and “Product Sales Representative Job Position.” These attachments must be used as you complete this assessment. It is also recommended that you consult the websites provided and integrate any relevant coursework resources into this assessment.

A. Revise the attached “Current Job-Value Structure” to enable internal reward equity by doing the following:

  • Update the salary information for the 20 current employees, as necessary.
  • Add in the three new positions, one brand manager and two product sales representatives, with their anticipated salaries.

Note: You must base your revisions on the attached “Brand Manager Job Description,” “Market Rewards Survey,” and “Product Sales Representative Job Description.”

  1. Justify the salaries and placement of the three new positions, one brand manager and two product sales representatives, within the revised job-value structure.

B. Create a pay grade and ranges table that addresses the current and new roles by using your revised job-value structure and all other attachments.

  1. Describe a strategy to address the original salaries found in the attached “Current Job-Value Structure” that might now be outside the proposed ranges.

Note: If the original salaries are not outside the proposed ranges in your pay grade and ranges table, describe a strategy that you would use if they were.

  1. Justify the pay grades and ranges in the table, commenting on attraction and retention strategies.

C. Recommend one distinct variable pay option to motivate employees in three different pay ranges from part B, including a justification of why each recommendation would motivate individuals in that particular pay range.

Note: One distinct variable pay option should be provided for each pay range.

D. Acknowledge sources, using in-text citations and references, for content that is quoted, paraphrased, or summarized.

E. Demonstrate professional communication in the content and presentation of your submission.

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