75 SKILL BUILDER Developing a Wage Structure I. OBJECTIVES A. To familiarize you with how data obtained when using the point system approach to job evaluation can be used to develop a wage structure. B. To give you practice in developing a wage structure. II. TIME REQUIRED TO COMPLETE: 1 hour or less III. INSTRUCTIONS Examine the pay data below. Pay Grade 1 2 Job Evaluation Points 100-200 201-300 301-400 401-500 Top of Grade $36,000 $39,000 $47,500 $53,800 Position Control Operator Control Operator 11 Control Operator III Control Operator 4 Exhibit 4.6 shows a partially completed pay structure for control operator positions. Your first task is to complete the chart for pay grades 2. 3, and 4. Construct pay steps for each of the remaining pay grades based on the following guidelines for "time in service" in each pay grade. Pay Step Data Entry wage: 65.5 percent of top for each pay grade Step 1: After 1 year within the pay grade 70 percent of top Step 2: After 3 years within the pay grade 75 percent of top Step 3: After 5 years within the pay grade 82 percent of top Step 4: After 8 years within the pay grade 90 percent of top Top of grade: After 10 years within the pay grade In addition, listed below are the names of employees in each pay grade and their current salaries. Your second task is to plot each one on Exhibit 4.6 and to determine which of the current salaries fall outside the appropriate pay grade. Control Operator: Charles Hamilton6 years' services-paid $30,218 Mary Richardson10 years' service-paid $32,250 Control Operator: Jerry Smith-2 years' service-paid $29,250 Theresa Jones 5 years' service-paid $31,600 Control Operatorilo: Alicia Wadsworth5 years' service-paid $38,950 Connie Johnston-7 years' service-paid $40,380 Velda Prescott-1 years' service-paid $33,250 Skill Balders. Developing a Sure 229 Control Operator IV Gloria Lopez 3 years' service-paid $40,350 Rosemary Jensen 5 years' service-paid $44,120 EXHIBIT 4.6 Pay Structure for Office Staff Positions $54,000 $82,000 $50,000 $48,000 $48,000 $44,000 S42,000 $40,000 $38,000 Wage Rate $36.000 Grade 1 S34,000 $32,000 $30,000 $28,000 $26.000 $24,000 $22.000 23,580 100 200 400 500 300 Points