Question

Part 1 You are a human resources manager for a large national retail chain. You have been asked by your supervisor to devise a new remuneration and benefit structure for the position of retail store manager within the organisation. This structure will be applied consistently across all of the organisation's retail outlets around the country. Devise a new remuneration and benefit structure and write a proposal for the consideration of your supervisor. To do this, you will need to undertake research to learn about the current relevant market pay rates for this type of position (including upper and lower limits), the kinds of benefits commonly on offer, and the overall package structure commonly in evidence. Present this information with details of the research you have undertaken, the rationale for the decisions you have taken, and any other marketplace information that you think your supervisor will need to have in order to make an informed decision. In your answer, you should consider incentive programs for motivating and rewarding high performance, industrial conditions that apply to this occupation, and implications that might stem from any benefits included. Suggested timelines for review and update of the remuneration strategy should also be included.

Answer 1

Answer:

I need to devise a new remuneration and benefit structure for the position of retail store manager within the organization. This structure will be applied consistently across all of the organization's retail outlets around the country for the position of retail store manager.

Based on the market research and reviewing other key factors for the appropriateness of the remuneration and pay structure, we have come up with following proposal as below

S		Pay Category	Amount	Remarks
1	A category	Basic Pay	$ 1200
2		Managerial Allowance	$ 900
3		HRA	$ 800
4		Medical Allowance	$ 400
5		Performance Pay Incentive	$ 1300	Target Based Incentive
6		A Total	$ 4600
7	B category	Retrials benefits	$ 300
8		Annual Variable Pay Plan ( per factor)	$ 250	Annual Pay
		B Total	$ 550
		A+B Total	$ 5150

The rationale for this pay structure is that this is the best common pay structure that we can offer to our retail store manager as this is the pay pan fits slight upper to the median of the market and it contains the performance based incentive which will drive better performance form the manager. This is better than the current pay plan. We will be paying better than market median for this position.