View the following video concerning internal equity:
GreggU. (2019, September 30). Internal Consistency [Video]. YouTube
You are a newly hired HR professional now working for Jeans Inc. Jeans does not have a formal wage structure or rate ranges and does not use compensable factors. Wages are basically set on prevailing wages in surrounding communities coupled with some attempt for internal equity among workers.
Jeans does not participate in formal pay surveys. Instead, the administrative assistant routinely looks over online job openings and conducts informal surveys among her friends in local organizations. Jeans has always followed a policy of paying employees about 10% above what the assistant determines are the prevailing rates. She thinks this reduces turnover and fosters employee loyalty. The practice is to pay men about 20% more than women for the same job. The assistant explains, “When we hire males, they have families, and they are stronger and can work harder for longer hours.”
Address the following questions in a 2- to 3-page essay. Support your responses with information from at least 2 reputable sources (library and/or Web-based), and provide the full citation at the end. Use APA format for your references. Share your own personal experiences, readings, and research, where applicable.
1. Select two job evaluation methods that might work well for Jeans. Compare and contrast them. Select one of the methods and justify why you recommend that it be implemented for Jeans Inc.
2. Is the policy of paying 10% more than the prevailing rates a sound one? If so, how should it be determined? If not, what do you recommend?
3. What characteristics of a sound salary structure are needed for Jeans? Why? Justify your answer.