Case: Precision Engineering

Precision Engineering is a small consulting firm. A salary survey was completed by an outside HR firm and the results averaged. The results for the Benchmark jobs are presented below. They are mid-level professional jobs.

Employee	Degree Attained	Years since graduation	Salary (annual)
1	BSc	3	39,000
2	MS	6	58,800
3	MS	3	50,400
4	PhD	7	95,900
5	BSc	6	48,000
6	PhD	9	105,300
7	MS	4	53,500
8	PhD	3	77,100
9	BSc	7	51,000
10	PhD	6	91,200
11	MS	9	67,200
12	MS	7	61,600
13	PhD	4	82,800
14	BSc	9	57,000
15	BSc	4	42,000

Instructions

Using a spreadsheet program, follow these instructions to construct your pay policy line:

1. Plot the jobs using a scatter diagram with the Salary Scale on the vertical axis and the JE Points on the horizontal axis.(Use landscape view and use the whole page).
2. Draw a trend or best fit line through the middle of all the jobs. Make sure that you include all the data points - not just the trend line.
3. Construct a set of pay boxes (no broad banding) and justify the number of boxes you created.
4. In a separate area of the spreadsheet, explain the rationale behind the width of the grades as well as the number of boxes. Also explain any "overlap" that occurs.

Note:No jobs can be green circled, red circled, or rest on a pay box boundary.