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Fastcat Case Study Phase 2 Pdf

Fastcat Phase I Essay

4578 WordsMar 20th, 201319 Pages

FastCat
Compensation Plan
Phase I

February 10, 2013

Presented By:
The
Compensation
Group
Table of Contents

Executive Summary 2
Recommended Compensation Plan Objectives 3
Strategy for Internal Alignment 4
Job-based Plan 5
Compensable Factors 6
Internal Structure 11
Picture of Internal Structure 12
Execution/Manual 21
Rationale/Evaluation of Recommendations 22

Executive Summary FastCat's mission is to exceed customer's expectations of value, dependability and reliability by focusing on innovation and teamwork; to help our customers succeed; to support and share with our employees; and to respect and recognize individuals and their performance contributions. The following compensation plan…show more content…

Relational returns (recognition and status, employment security, challenging work, learning opportunities) increase efficiency and engagement of employees.
 to encourage collaboration in order to improve customer satisfaction by meeting customer needs, providing timely delivery, and promoting exemplary customer service FastCat's customers expect economical software that is reliable, user friendly, and easily adaptable to their organizational needs. FastCat staff are encouraged to collaborate, cross train, and make decisions that will improve the product or exceed customer expectations. FastCat will control labor costs to ensure competitive pricing of all products and services. By developing new products, securing service contracts and providing training to customers, FastCat will realize an increase in revenue from existing customers as well as new customers.
 to comply with all laws and regulations in regard to pay equity and discrimination on the basis of gender, race, religion or national origin FastCat's compensation plan provides equal pay for similar positions, education, skill and abilities. Equal pay and fair treatment of all staff promotes a team environment. The plan will respect and recognize all individuals and their contributions to the organization.
Strategy for Internal Alignment The way people are paid

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Unformatted text preview: Executive Summary Introduction FastCat is a company in the medical software industry that concentrates on serving small and medium-sized firms. This industry is very dynamic and is undergoing a lot of change. In order for FastCat to remain competitive, they need to focus on creating new products, and developing or strengthening client relationships. This will help them to create a competitive advantage, and give them an edge over larger successful companies in the industry. To meet these objectives FastCat needs to have dedicated, committed, and motivated employees. In order to ensure these characteristics, FastCat employed Badger Consulting to create a compensation plan for their company. Method/Process After analyzing the external competitive and internal factors at FastCat, Badger Consulting came up with a compensation strategy. Badger Consulting considered the characteristics and responsibilities of each job, and used some elements of the Carlson Dettmann Consulting Job Evaluation System, as well as additional compensable factors. Based on the FastCat Job Descriptions, Badger Consulting grouped each job into one of five structures. Badger Consulting then went through the responsibilities, requirements, and competencies of each job to determine a point factor based on compensable factors. Badger Consulting then proposed the compensation plan to FastCat and made several recommendations for how to best manage and implement the system. Recommendations 1. Create five structures within the organization by placing jobs into administrative, quality assurance, engineering, client relations and marketing categories. 2. Under the proposed job evaluation system, score each job based on six compensable factors, and place in order of score. The compensable factors are as followed: o Formal preparation and experience o Decision making o Thinking challenges and problem solving o Interactions and communication o Client development (for the administrative, marketing, and client relations structures) o Technical expertise (for the engineering and quality assurance structures) 3. Have an appeal process in place, so that employees can argue how their position may fit another grade. In the end, this will give employees a clearer understanding for how the pay is determined. 4. Biannually update the system to account for changes in responsibilities, new advances in the industry, and necessary skills and competencies. Recommend Strategy and Objectives The internal structure divides jobs into five specific structures and compensates employees based on the skills and qualities they need to succeed in their respective department structures. This will enable FastCat to implement a fair compensation plan that will increase employee engagement; currently, only 58% of employees understand how their pay is determined, and only 45% believe that their performance is rewarded when they do a good job (Exhibit 7, page 7). The internal structure strategy will support and compensate the employees’ (Exhibit 7, page 7)....
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