The main issue relating to job grads in the Columbus Carpentry case study is the lack of internal equity. The manufacturing department is said to be receiving much pay compared to the warehouse department who are paid less. The people at the warehouse require more skills than those at the manufacturing department. This implies that the job grades are not fairly arranged where the manufacturing department are graded higher than the warehouse department.
The root cause of this is improper classification of job grades in terms of ranking that is from the highest to the lowest job grade in terms of skills. Also, the market data has not been researched on keenly. The skills required by each department might have not been reviewed clearly since job grades are done according to the skills required and qualifications. One that requires more skills has the highest job grade.
To achieve proper job grades first there should be a research conducted by the Columbus Carpentry management team on the pay ranges for different jobs. After having this data then it is necessary to analyse the pay ranges with the company’s ensuring they are almost similar. Payment ranges will help identify different job grade rankings for example the manufacturing department can be ranked job grade 11 while the warehouse grade 12 which is a little higher. Proper determination of job grade ranking according to skills is also another solution where the management will review skills required and grade accordingly. Finally, what follows is to match the appropriate pay range with the job grade. Making changes to the payment structure is the last step which will get the employees receiving fair payment according to the market data and skills.
Reference
Columbus Custom Carpentry: A Compensation Case Study
