Reference no: EM133277920

Assignment:

Congratulations! You've just been hired by Acme Enterprises as a compensation analyst. For your first project, your boss wants a compensation analysis of Acme's office staff which has experienced substantial employee turnover. She wants to know if pay is the problem and how much it will cost to fix it and stop the turnover problem. You reach out to the staffing team and find out that during the exit interview, 80% of the departing office staff stated that low pay was the top reason for leaving.

You find the results of a recent survey Acme did of local companies' pay practices. The compensation survey shows an average hourly rate of $30 for total compensation. Of this amount, wages are $21 per hour and benefits are $9 per hour. In comparison, Acme spends an average hourly rate of $24 for total compensation. Of this amount, 70% is allocated for wages.

A presentation for your boss that shows your analysis and your recommendation to fix the problem. The format is your choice. Options include: video presentation; PowerPoint slides; a Word document; an audio presentation.

Make sure to include the following data:

1. On an average hourly basis, how much does Acme spend on office staff wages and benefits, respectively, in dollars and cents?

2. How much does Acme spend on wages and benefits over the course of a year for 100 office staff members? You should assume that each staff member works 2,080 hours in a year.

3. Bottom line, how much additional money does Acme need to match market rates for this group of 100 employees?

4. What is your recommendation to your boss regarding office staff pay? Your boss likes to have options, so come up with at least two alternatives to address the problem.