Running head: 6-2 FINAL PROJECT MILESTONE 3: SECTION 2 EXTERNAL
6-2 Final Project Milestone 3: Section 2 External Competitiveness
Ross Merel
Southern New Hampshire University Online
OL-325-Q6366 Total Rewards
David Miller
August 12, 2018
, 2
6-2 FINAL PROJECT MILESTONE 3: SECTION 2 EXTERNAL
6-2 Final Project Milestone 3: Section 2 External Competitiveness
The organization of E-Sonic is one that requires the need for a pay-policy that is
personalized to the precise divisions within the company. An either-or method would not be
suggested as it effects the firm’s capability to stay competitive. When shaping the pay-policy
mix for the administrative branch it is rational to vary it from the more competitive departments
pay scale such as the marketing department. The marketing branch, for example, is a results-
oriented department and would function well using an incentive-based pay program such as
recompense for individual sales goals. The administrative branch is support staff and could not
be measured by the same guidelines as the marketing department, or any other competitive goal-
oriented division.
Position Merit Based Pay Pay for Performance
Administrative Assistant $200 $200
Executive Assistant $200 $200
Office Manager $200 $200
Note: 1*Merit based pay raises over a 10-year period total $2000, Pay for Performance are one time payments and are not
cumulative over time.
The most sensible pay-policy for the administrative branch would be a merit based pay
scale. A merit-based pay-policy for the administrative branch would the most reasonable based
on job responsibility. Merit-based pay scale has the benefit to the employee of being
accumulative over time. As the chart above illustrates a merit raise of $200 increases the
employee’s potential earnings over a 10-year period to an additional $2000. A pay-for-
performance bonus would afford the employee a one-time pay out but would not be
accumulative. Pay-for-Performance bonuses are also taxed at a higher rate. The two factors that
will be looked at for deciding merit increases for administrative staff will be Market Price and
6-2 Final Project Milestone 3: Section 2 External Competitiveness
Ross Merel
Southern New Hampshire University Online
OL-325-Q6366 Total Rewards
David Miller
August 12, 2018
, 2
6-2 FINAL PROJECT MILESTONE 3: SECTION 2 EXTERNAL
6-2 Final Project Milestone 3: Section 2 External Competitiveness
The organization of E-Sonic is one that requires the need for a pay-policy that is
personalized to the precise divisions within the company. An either-or method would not be
suggested as it effects the firm’s capability to stay competitive. When shaping the pay-policy
mix for the administrative branch it is rational to vary it from the more competitive departments
pay scale such as the marketing department. The marketing branch, for example, is a results-
oriented department and would function well using an incentive-based pay program such as
recompense for individual sales goals. The administrative branch is support staff and could not
be measured by the same guidelines as the marketing department, or any other competitive goal-
oriented division.
Position Merit Based Pay Pay for Performance
Administrative Assistant $200 $200
Executive Assistant $200 $200
Office Manager $200 $200
Note: 1*Merit based pay raises over a 10-year period total $2000, Pay for Performance are one time payments and are not
cumulative over time.
The most sensible pay-policy for the administrative branch would be a merit based pay
scale. A merit-based pay-policy for the administrative branch would the most reasonable based
on job responsibility. Merit-based pay scale has the benefit to the employee of being
accumulative over time. As the chart above illustrates a merit raise of $200 increases the
employee’s potential earnings over a 10-year period to an additional $2000. A pay-for-
performance bonus would afford the employee a one-time pay out but would not be
accumulative. Pay-for-Performance bonuses are also taxed at a higher rate. The two factors that
will be looked at for deciding merit increases for administrative staff will be Market Price and
