Background

You are the Compensation Analyst for Big Blue Construction Company. Your Company is primarily focused on concrete construction projects. Recently, the President has announced the acquisition of a small quarry to help Big Blue become more vertically integrated on the supply side. The recently acquired company has Operative jobs that have never existed in your Company before. These jobs include Mill Worker, Welder, Tool Grinder, Mixer, etc.

The President is looking to create a new Operative Compensation Structure for these new positions without disturbing the already established structures at Big Blue.

Your boss has asked you to create this new Operative Compensation Structure. He has asked you to determine the appropriate range spreads and range overlap. His only instruction is that the new structure must contain 10 grades and start at $12.50 as the minimum of the first grade. You will be presenting your new Compensation Structure to the President of Big Blue Construction Company.

Instructions

Use the template below to create the new Operative Compensation Structure. You are responsible for determining the Range Spread and overlap for your structure.

Template

OPERATIVE SALARY STRUCTURE
Grade	Minimum	Midpoint	Maximum
1	$12.50
2
3
4
5
6
7
8
9
10

Calculations of Minimums, Midpoints & Maximums Given either a minimum, midpoint or maximum, and a range spread (RS), the two remaining figures may be calculated by producing a factor from the formulas in the following table and multiplying by the known quantity. To find: Minimum Midpoint Maximum If known figure is: Minimum ((2+RS)/2) (1+RS) Midpoint (2/(2+RS)) ((2+(2*RS))/(2+RS)) Maximum (1/(1+RS)) ((2+RS)/((2+(2*RS)))) For example: If a given maximum salary is $1,500 and the desired range spread is 40%, then the midpoint salary may be found by selecting the appropriate factor formula from the table, then inserting the range spread (RS) of 40%, and multiplying by the salary of $1,500: ((2+.40)/((2+(2*.40))))*$1,500, or(2.4/2.8)*$1,500 = $1,286