This week we consider two kinds of competitiveness in developing a pay structure within an organization. Internal competitiveness is essentially determining the value of a position within an organization based on the job characteristics performed by an employee. External competitiveness looks outside the organization and considers similar jobs and the associated pay within the industry. A strategic organization will consider both sides of competitiveness in developing the pay structure for its positions, particularly when hiring an incumbent.

Consider the table below regarding a position that is offered at three companies within the same industry:

Job: IT Service Desk Representative

	Base Pay	Benefits	Other Perks
Company A	$38,000	35% of Base	Alternate 4 day/10 hour workweek. Location is 3 miles from home. Ability to work from home 2 days per week.
Company B	$45,000	26% of Base	Standard 5 day/8 hour workweek. Location is 7 miles from home. Ability to work from home 1 day per week. May have to work holidays at 2x pay.
Company C	$42,000	32% of Base	Standard 5 day/8 hour workweek. Location is 12 miles from home. Ability to work from home 3 days per week. Discounts to gym membership, child care, and other local services.

Analyze the pay details and describe the total compensation package of each of these options. In your opinion, which of these companies offers the best compensation package? Be sure to consider total rewards in your opinion. Assuming you were given job offerings at these three companies for the same position, which company would you select and why? Now, if you were a manager for an organization offering a similar position, what do you believe is an appropriate pay level and compensation package? Explain your reasoning.