Compensation strategy

Chapter 1 – Explain WHY Easy Spa would benefit from hiring a compensation professional by applying the
three questions related to strategic compensation decisions (LO 1-3 pg 6):
Does the compensation strategy fit well with the objectives of competitive business and HR strategies?
Does the choice and design of compensation practices fit well to support compensation strategy?
Does the implementation of compensation practices effectively direct employee behavior to enhance job
performance that supports the choice of compensation practices?
**It is likely you will feel more information is needed to answer these questions – list out the specific questions
you would want to know in order to better assess Easy Spa’s use of compensation as a strategic practice.
Chapter 2 – Based on your reading of chapter 2, section “Employment laws pertinent to compensation
practices” (page 37-49)

  1. Identify at least ONE federal law that Easy Spa may need to worry about (in terms of falling out of
    compliance).
    Explain the law,
    explain the risk the company may be currently running, and
    explain what a compensation professional could do to ensure the problem is quickly
    identified/corrected/prevented.
    Finally, think about HOW Jay can present the most effective case to the CEO of Easy Spa so that the CEO will
    agree to hire a Compensation Professional.
  2. Outline the basic arguments that you believe Jay should make.
    How should he prepare?
    What data/information should he bring to the meeting, in anticipation of questions from the CEO?
    Further Expectations

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