Reference no: EM133006206

Case study: Tony Reid is returning to his office after attending the grand opening of the 20th location of Cooper Spa. As the Director of Human Resources at this growing chain of day spas, Tony has faced many challenges. Opening this latest location took a significant amount of time for Tony and his staff and they have fallen behind on some important projects. His staff has grown along with the company, and Tony believes now is the time to expand his staff by one more position. He now must prepare to meet with the company's CEO to discuss his request to hire a compensation professional. Cooper Spa is a specialty day spa that provides spa services at a reasonable cost. Each of their locations has a variety of employees including nail technicians, hairdressers, masseuses and receptionists. Cooper Spa also has a centralized appointment scheduling and customer service center. In ten years, the company has grown from 15 employees at one location, to 396 employees at 20 locations. Continued growth is expected as the organization's mission is to become the top-rated day spa in their region. To support this growing organization, the human resources staff includes Tony, a Human Resources Generalist, a Recruiter and an Administrative Assistant. The Recruiter handles all aspects of attracting and selecting new employees and the Human Resource Generalist handles a variety of duties including employee relations and training. Tony provides leadership to the team and works with upper management to set policies and procedures. His duties are complex as they work with a diverse employee population in multiple locations. But, as Cooper Spa approaches 400 employees, Cooper believes a compensation expert can help support the company's growth plans. Compensation management is a responsibility that has challenged Tony. While the company offers full employee benefits and Tony has done extensive market research to ensure they offer attractive pay, he knows there is much more work necessary to ensure that their compensation structure is effective and efficient. The company has no written job descriptions and does not have a formal pay structure. Further, Tony relied upon an outside consultant to design their benefit package, and their benefit offerings have not changed since they were established ten years ago. Overall, Tony is convinced that a compensation professional would add significant value to the company. However, Jay must convince the CEO, who has little human resources expertise and is always resistant to hire more staff positions, that the addition to staff is necessary.

Questions:

• Describe at least two specific ways, would Cooper Spa benefit from hiring a compensation professional? 
• How would you coach Tony as he prepares to meet with the CEO? Specifically, what should Tony focus on or emphasise in order to convince the CEO that hiring a compensation expert will benefit the company overall?