HRM6632 Average Range of Employee Salary Assignment

Salary Structure Exercise — HRM6632

Show all calculations!

Given salary grades SG3 and SG4 shown below, which are part of a 6-step salary structure for exempt, salaried employees:

A. Calculate:

1. the range spreads for SG3 & SG4
2. the degree of overlap between SG3 & SG4
3. the midpoint-to-midpoint progression or increase (in percent) between SG3 and SG4



			$90,000

		$72,000




				SG5

			$45,000
			SG4
		$36,000
		SG3
	SG2

4. Given the data in Part A above, what is your assessment of this pay structure?

5. Could this organization do anything to improve its salary structure? If so, what?


B. Assume that there are six employees in SG3 with the following salaries:

$38,000; $42,000; $46,000; $48,000; $70,000; $72,000.

6. What is the average salary for employees in SG3?
7. What is the median salary for employees in SG3?
8. Why is the average salary so different from the median salary? What are the implications of this difference?

9. What is the group compa-ratio for employees in SG3?
10. What do you conclude from the compa-ratio you calculated for SG3?

All questions are worth 5 points each.