Instructions: Answer discussion questions number one and two. Respond to two classmates’ answer for each question. Question one: Discuss the basic building blocks of developing a market competitive pay system, including the relationship between internal and external equity. Respond to at least two of your fellow students’ postings. Respond to classmate 1: Greetings to all, Discuss the basic building blocks of developing a market competitive pay system, including the relationship between internal and external equity. The basic building blocks of developing a market competitive pay system have four steps conducting strategic analyses, assessment of competitors pay practices with compensation surveys, integrating the internal job structure with external market pay rates and determining compensation policies. · Conducting strategic analyses internal factors are fictional capabilities and financial condition and external market factors industry profile, competitor’s information and long-term growth prospect. · Assessment of competitors’ pay practices with compensation surveys gathering data from the competitor’s wages, salaries and benefits to establish objectives for the pay system. This system will guide you on how the market is being run that you don’t under or over pay for any positons. All data collected will be used and enables compensation professional to obtain a realistic review of the competitor’s compensation practices. Thus, the objective for developing the pay system should also keep in line with the company’s goals and objectives. · Integrate internal job structures wit external market pay rates this step will balance out any pay policies that will fit between managing cost and being able to attract and retain good employees. · Compensation policies, the final step have 3 pay level market lead, market lag and market match: · Market lead is where the company will compensate their employee higher than the market · Market lag the company will compensate less than the market · Market match the company will compensate equal as the market. Human Resources department along with managers will gather date to create a market completive pay system.  Based on what happened internally with compensation and benefits can be a huge effect externally.  HR will have to current with the market to attract the right people for the job and be able to retrain them also. Martocchio, J. J. (2011). Strategic Compensation: A Human Resource Approach 99th Ed.) Hoboken, NJ: Pearson Education, Inc. ISBN 978-0-13-432154-0. Retrieved from Ashford Edu. https://content.ashford.edu/books/Martocchio.7916.16.1/sections/ch07lev1sec1?search=building%20blocks%20#w76559 Respond to classmate 2: According to Martocchio (2017), “Market-competitive pay systems represent companies’ compensation policies that fit the imperatives of competitive advantage… Compensation professionals build market-competitive compensation systems based on the results of compensation surveys” (cha ...

1. Instructions: Answer discussion questions number one and two.
Respond to two classmates’ answer for each question.
Question one:
Discuss the basic building blocks of developing a market
competitive pay system, including the relationship between
internal and external equity. Respond to at least two of your
fellow students’ postings.
Respond to classmate 1:
Greetings to all,
Discuss the basic building blocks of developing a market
competitive pay system, including the relationship between
internal and external equity.
The basic building blocks of developing a market competitive
pay system have four steps conducting strategic analyses,
assessment of competitors pay practices with compensation
surveys, integrating the internal job structure with external
market pay rates and determining compensation policies.
· Conducting strategic analyses internal factors are fictional
capabilities and financial condition and external market factors
industry profile, competitor’s information and long-term growth
prospect.
· Assessment of competitors’ pay practices with compensation
surveys gathering data from the competitor’s wages, salaries
and benefits to establish objectives for the pay system. This
system will guide you on how the market is being run that you
don’t under or over pay for any positons. All data collected will
be used and enables compensation professional to obtain a
realistic review of the competitor’s compensation practices.
Thus, the objective for developing the pay system should also
keep in line with the company’s goals and objectives.
· Integrate internal job structures wit external market pay rates

2. this step will balance out any pay policies that will fit between
managing cost and being able to attract and retain good
employees.
· Compensation policies, the final step have 3 pay level market
lead, market lag and market match:
· Market lead is where the company will compensate their
employee higher than the market
· Market lag the company will compensate less than the market
· Market match the company will compensate equal as the
market.
Human Resources department along with managers will gather
date to create a market completive pay system. Based on what
happened internally with compensation and benefits can be a
huge effect externally. HR will have to current with the market
to attract the right people for the job and be able to retrain them
also.
Martocchio, J. J. (2011). Strategic Compensation: A Human
Resource Approach 99th Ed.) Hoboken, NJ: Pearson Education,
Inc. ISBN 978-0-13-432154-0. Retrieved from Ashford Edu.
https://content.ashford.edu/books/Martocchio.7916.16.1/section
s/ch07lev1sec1?search=building%20blocks%20#w76559
Respond to classmate 2:
According to Martocchio (2017), “Market-competitive pay
systems represent companies’ compensation policies that fit the
imperatives of competitive advantage… Compensation
professionals build market-competitive compensation systems
based on the results of compensation surveys” (chapter 7.1). In
other words, market-competitive pay systems utilize
compensation to provide an advantage over competition within
their marketed industry. For example, in the internet technology
industry, it is not uncommon to see compensation packages used
to attract and retain top talent. High salaries and generous
work/life benefits are offered to potential and current
employees to attract talent in what could be considered a
limited pool of applicants, which does provide a competitive

3. advantage.
There are four building blocks to a market competitive pay
system: conducting strategic analyses, assessing competitors’
pay practices with compensation surveys, integrating the
internal job structure with external market pay rates, and
determining compensation policies. Strategic analysis tries to
examine the external and internal factors that can affect a
company from a market standpoint. Assessing pay practices
through compensation surveys allows companies to determine
the wage and salary range for comparable positions within their
respective industries, which allows an organization the ability
to adjust compensation pay practices, gaining a competitive
advantage. Integrating the internal job structure with external
market pay rates enable individual businesses to improve pay
rates that reflect the external and internal value of a particular
job position. Lastly, determining compensation policies is
achieved through the cumulative data that is derived from the
collection of compensation surveys and market research, which
allows companies to then choose a compensation policy that fits
in with their broader competitive strategy.
References
Martocchio, J.J. (2017). Strategic Compensation: A Human
Resource Management Approach (9th Edition). Hoboken, New
Jersey: Pearson Education, Inc. ISBN 978-0-13-432054-0
Question Two:
Provide a brief overview of the job evaluation process,
including the importance of compensable factors. Detail the
compensable factors of a position you are familiar with and
their impact on that position’s salary, and you may want to
reference the job analysis and job description process, which
form the foundation of job evaluation. Identify at least four
pitfalls that exist for organizations that do not follow this
process. Respond to at least two of your fellow students’

4. postings.
Respond to classmate 1:
Greetings to all,
Provide a brief overview of the job evaluation process,
including the importance of compensable factors. Detail the
compensable factors of a position you are familiar with and
their impact on that position’s salary, and you may want to
reference the job analysis and job description process, which
form the foundation of job evaluation. Identify at least four
pitfalls that exist for organizations that do not follow this
process.
1. Identify if a single versus multiple job evaluation techniques
if not they will have handled separately.
2. Choosing the evaluation this committee can be comprised of
rank and file employees or supervisors and union
representatives. The committee should be knowledgeable of the
evaluation process and understand each position.
3. Training the employees to able to conduct job evaluation,
whereas the employees will need to understand the companies
process objectives. Before applying the applicant should be
experienced, knowledgeable and have applied practice
previously.
4. Recording the job evaluation plan can clearly specify the job
related criteria against which the jobs are evaluated. Not to
mention should any legal issues arise all documentation can be
used.
5. Being able to communicate with employees throughout the
evaluation the employees will understand and accept the process
and the results.
6. Having an appeal process will allow the reviewers to go
through each case and also give the employees an opportunity to
voice their opinion.
Thus the compensable factors include experience, education,
working conditions, duties, responsibilities and they are
addressed in order to help determine.

5. Pitfall that exit is organization any incomplete jobs elevation is
personnel utilization a potential managerial candidate that skill
is not being visible. Another issue budget evaluation can
determine who get a bonus and who does not incorrect
evaluation can hinder the budget. Job description should
constantly be update in HR for future applicants. Based on
three previously list can maintain moral in the company thus,
lack of moral can lead to poor performance.
Martocchio, J.J. (2011) Strategic compensation: A human
resource management approach (6th Edition). Upper Saddle
River, New Jersey: Prentice Hall.
Root 111, G. (2015) Hearst Newspaper: What impact can an
incomplete job evaluation have for a
company? Retrieved http://smallbusiness.chron.com/impact-can-
incomplete-job-evaluation-company-10854.html
Respond to classmate two:
There are six steps to the job evaluation process which are
described below:
1. Determining Single Versus Multiple Job Evaluation
Techniques- This is where companies and organizations try to
determine if the positions that they have available or are already
in use need to be evaluated either by a single technique or are
multiple methods required to achieve an extensive evaluation
that takes into account compensable factors. For example, the
position that I currently hold requires a person to have a college
degree, be able to type 40 WPM, have adequate knowledge
about Social Security programs, and be able to navigate
software and databases proficiently. Additionally, the customer
service experience is required as well. These factors were used
by the agency to determine how to evaluate the worth of this
position and assign a pay grade to it. Since there are so many
compensable factors involved, it would be natural to assume
that the agency uses multiple techniques to evaluate these
positions.
6. Choosing the Job Evaluation Committee- According to

6. Martocchio (2017), “Job evaluation is an important determinant
of a job’s worth within many companies. All employees,
regardless of their functions, wish to be compensated and
valued for their efforts” (chapter 6.3). It is then natural to
assume that employees need to have a voice in decisions
concerning their pay. In pursuit of this job evaluation
committees are formed from rank-and-file employees,
supervisors, and managers, to determine and evaluate job
classifications.
1. Training Employees to Conduct Job Evaluations- Since job
evaluations affect employees the most, which is natural for
workers to acquire methods of possibly conducting and
processing job evaluations. This way they can ensure that
checks and balances are being used in job evaluations and that
all legal criteria are being met.
1. Documenting the Job Evaluation Plan- A complete and well-
documented evaluation plan ensures that all legalities are being
considered. Additionally, it can be used for training purposes
(i.e. managers, employees, and job evaluation committees).
1. Communicating with Employees- The job evaluation is
important to many stakeholders on a personal level, as their
results have a real-world effect on wages and pay. Therefore,
formal communication with employees throughout the job
evaluation helps to make sure that stakeholders understand and
accept the job evaluation process and its results.
1. Setting Up the Appeals Process- Every process can have its
flaws, as they involve human errors. In response to this,
companies have developed appeals processes that allow for
case-by-case basis analysis and review of any mistakes and
legal contentions that can arise from breakdowns at any level of
the job evaluation process.

7. Companies can fall into many traps if the employer administers
an improper evaluation; for example, legal issues such as
discrimination and other constitutional violations can occur.
Communication can become limited and in some cases, broken
beyond repair. Conflict can enter the picture, which creates a
toxic work environment. Last, but not least, the competitive
advantage that a company seeks can become jeopardized, as if
all of the other three problems exist within a company, then the
company becomes less attractive to potential employees,
customers, and business partners.
Reference
Martocchio, J.J. (2017). Strategic Compensation: A Human
Resource Management Approach (9th Edition). Hoboken, New
Jersey: Pearson Education, Inc. ISBN 978-0-13-432054-0
Here is week 3’s lecture you may reference to to help answer
questions and respond to classmates.
In Week 3, this course will discuss the components of
developing a market competitive pay system as well as the job
evaluation process. To develop a competitive plan, HR
managers need to use a variety of practices that will make up
the plan to be competitive but also adhere to the organizations
overall goals and plans. Market-competitive pay systems play a
significant role in attracting and retaining the most qualified
employees for the organization (Martocchio, 2017).
HR professional should offer a competitive salary to attract and
retain talented employees without damaging the organization’s
bottom line (Bisk, 2018). To determine a competitive pay
system for employees, organizations need to review internal job
descriptions and salaries and then utilize the compensation
benchmarking process to understand what competitors are
paying for a similar position in the industry. For an
organization to develop an appropriate and competitive
compensation package there are a few steps the organization can

8. take. For example, the organization should know the market in
which is participates in to determine if the organization pay is
on par with its competitors. There needs to be an assessment of
competitor’s compensation and pay policies. This can be
accomplished via salary surveys which collect day about
salaries, and benefits, among various employers for specific
jobs (HRcouncil.ca, nd). Salary surveys are conducted with
“numerous employers to determine pay levels for specific job
categories and are generally conducted either by region, sector
or job classification for the purposes of comparability.”
(HRcouncil.ca, n.d.). Salary surveys can provide benchmarking
information for comparing salaries and benefits. Organizations
also need to complete an internal analysis which can include a
SWOT analysis of its compensation practices. The survey
results can also be used in completing the SWOT analysis. A
SWOT analysis analyses the organizations strengths,
weaknesses, opportunities and threats. In completing this
analysis, the organization will be able to identify all factors
either favorable or unfavorable, necessary to obtain the desired
outcome.
Organizations can be competitive by offering other means of
compensation other than a salary. For example, more and more
organizations are providing employee stock ownership plans,
deferred compensation, flexible work schedules or remote
working options and contributions to retirement plans.
Insurance plans such as health, dental, life and disability are
also other “perks” that organizations are providing to be
competitive with a compensation and benefits package.
Job evaluation is the “systematic process for assessing the
relative worth of jobs within an organization.” (HRcouncil.ca,
2018). An analysis of each position’s responsibilities,
knowledge, and skill requirements is used to measure the value
of the job to the employer. This evaluation process allows the
organization to determine the appropriate pay rate. As an
organization creates new job or a reclassification of a job, a job
evaluation should be completed so the organization knows it is

9. hiring based on its needs. The job evaluation often determines
which jobs should receive higher compensation as compared to
other jobs within the organization. A job analysis is the
“systematic study of a job to determine which activities and
responsibilities it includes, its relative importance to other jobs,
the personal qualifications necessary for performance of the job
and the conditions under which the work is performed.”
(SHRM, 2017). It allows HR to understand what tasks are
important and sets the expectation for other HR activities such
as recruitment and selection, relative training programs and
performance appraisals. The job analysis is used to create a job
description which is also considered by the organization when
determining the appropriate compensation package.
Overall, there are many factors and analysis an organization
needs to review and complete when determining the appropriate
compensation package. Internal and external factors need to be
considered for the package to be competitive. Competitive
compensation package will allow organizations to attract and
maintain the best qualified employees.
Please review the Total Rewards (Links to an external
site.) video which will provide an overview of total reward
compensation plans.
References
Bisk. (2017). Developing a competitive pay practice in your
organization (Links to an external site.). Retrieved from
https://www.villanovau.com/resources/hr/developing-
competitive-pay-practices/#.W9Zar7hRfIU
Gregg Learning. (2016). Total rewards (Links to an external
site.) [Video file]. Retrieved from
https://www.youtube.com/watch?v=LPdEW21QfDY
Hrcouncil.ca. (n.d). Compensation & benefits (Links to an
external site.). Retrieved from http://hrcouncil.ca/hr-
toolkit/compensation-salary.cfm
Martocchio, J. (2017). Strategic compensation: A human
resource management approach (9th ed.). New York, New York:

10. Pearson.
Society for Human Resource Management. (2018). Performing a
job analysis (Links to an external site.). Retrieved from
https://www.shrm.org/resourcesandtools/tools-and-
samples/toolkits/pages/performingjobanalysis.aspx