Question

You have been hired as a consultant to develop a new position and the appropriate compensation and benefit package for the position. Note, you may pick any industry, any size company and any geographic location as the basis for your consulting work.

The company has asked for the following deliverables:

-Provide an executive summary of the position, wages, benefits and incentives.

-Organizational chart indicating where this position falls in the company. This will help show internal alignment.

-Job Description. Be sure to include all the components mentioned for week 2 exercise.

-List of compensable factors and rationale for the factors

-Wage level and pay range. Define what internal and external factors you used in coming up with this range. Define what factors you will consider in placing a candidate within the range.

-Incentive package. Explain the incentives you will use for this position. Include your justification on why you selected these incentives. Include the cost of the incentives.

-Benefit package. Explain what benefits you would include and why. Include the cost of the benefits you select.

-Salary survey(s) to justify your wage. Explain why you came up with your wage range based on reliable, credible salary survey data.

Answer 1

Company Summary: This firm is an enterprise software development agency that deploys web-based SaaS or Software As A Service applications for firms. They socialize in developing ERP or enterprise resource planning software, Sales / CRM systems, Project Management Tools and internal chat and collaboration tools for mid-tier enterprises in the United States with 50 - 100 employees.

Organizational Hierarchy :

Summary of the position: The role would require a Full Stack developer with a minimum of five years of experience. The role would come with the following responsibilities

• Front End Web Development

• Back end Web Application Development

• Wire Framing

• Quality Control

• Database management, security, control, and access protocols

• Server management, allocation, integration, and deployment

• Understand business needs relayed by business analysts

This position would be based out of Silicon Valley, San Francisco Bay Area

List of compensable factors and rationale for the factors

Cost of Living in San Francisco Bay, California	Cost
Average Cost of renting a house or an apartment in San Francisco Bay	3500 $
Utilities	180 $
Phone / Smartphone Payments (inclusive of phone cost + bills for data, calls, and text)	200 $
Groceries	1500 $
Public Transit and Uber / Taxi	300 $
Eating Out	350 $
Childcare (if Any)	500$
Total Cost Incurred by Employee (Monthly)	6530$
Total Cost Incurred by Employee (Yearly)	78,360$
Average Salary of Full Stack Developers in Silicon Valley (based on Market Rates and Competitor Compensation) with 5 years of experience	100,000 $ - 123,000 $
The amount we should pay to avoid Attrition, Improve Retention, Job Satisfaction, and Optimum Performance would be	123,000 $

-Wage level and pay range. Define what internal and external factors you used in coming up with this range. Define what factors you will consider in placing a candidate within the range. Incentive package. Explain the incentives you will use for this position. Include your justification on why you selected these incentives. Include the cost of the incentives. Benefit package. Explain what benefits you would include and why. Include the cost of the benefits you select.

Compensation Plan	Wages , Incentives / Bonuses , Retention Bonus & Benefits
Base Compensation Commission Overtime Retention Bonus (To prevent attrition)	Base Pay : 65 $ per hour Commissions : 0 (since this isn't a sales based job Overtime Pay : 90 $ per hour Annual Retention Bonuses : Retention Bonus for employees who stay within the firm for 1 , 2 ,3 4, and 5 years Year 1 Retention Bonus : 10,000 $ Year 2 Retention Bonus : 20,000 $ Year 3 Retention Bonus : 30,000 $ Year 4 Retention Bonus : 40,000 $ Year 5 Retention Bonus : 50,000 $
Benefit	Free Health Care / Insurance for Spouse and Children Uber Pass Parking Paid parental leave for both men and women 30 days of paid casual leave (encashable) 14 days of paid sick leave 401k Plan ESOPs

Sources/websites: Pay-scale, Glassdoor, Indeed, Cost of living estimators