Kristen Murphy OL325 Milestone Three.docx - Kristen Murphy...

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Kristen MurphyOL-325- Total Rewards 5-2 Final Project Milestone Three: Section 2: External Competitiveness
Determining Appropriate Pay-Policy Mix: In order for E-Sonic to determine the most appropriate pay-policy mix, they must analyzethe organization’s budge to decide what types of compensation they can allocate to each position.Another way to determine what the pay range should be, E-Sonic could explore the monetary benefits of what their competitors within the same market offer. A generous salary can make a company attractive to a potential employee, but other types of benefits and perks not associated with monetary compensation can attract and retain great employees.Sonic will have to decide what type of pay scale system to incorporate into their compensation agreements. The status of the position within the company and the duties and responsibilities to be carried out by the employee are factors that must be taken into consideration to offer an appropriate pay. One additional factor is seniority; this is a key element as many organizations provide raise increases after a certain amount of time or if the employee meets certain measures. A well-thought-of pay-policy mix is the combination of the base compensation, employee benefits, and short and long term incentives. (Martocchio, J.J. (2015).) Establishing an appropriate pay-policy mix is imperative because compensation will be the largest cost factor in E-Sonic’s operations.

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