Design a merit increases process and provide information on the pros/cons of a common review date versus the current increase process.
Design a merit increases process and provide information on the pros/cons of a common review date versus the current increase process.
COMPENSATION PROJECT The Living Waters Nursing Home Inc. is a not-for-profit dedicated to providing…
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COMPENSATION PROJECT
The Living Waters Nursing Home Inc. is a not-for-profit dedicated to providing quality care to the residents. The organization was founded by J.P. Edwards in 1970. Mr. Edwards managed the organization until his retirement in 2005. At that time his son, Bob Edwards, was named President/CEO. The organization has a budget of $50 million for 2011.
Eighteen months ago, the family decided to hire Frank Jones as the new President/CEO. After evaluating the current operations, Mr. Jones decided that the Nursing Home was in fairly good shape except for the lack of standardized Human Resource policies. Very little information existed to support any of the past employment decisions, especially in the area of compensation. The organization does not have a formal compensation plan of any kind. The employees’ pay was based on Bob’s general perceptions and the input of a few other executives.
The organization did not give pay raises in 2009 or 2010 due to budgetary constraints. In addition, executives and employees have expressed rather strong concerns about some obvious favoritism in hiring and compensation.
In the last eighteen months, Mr. Jones has encountered several problems.
The desk clerks have been complaining that their pay is the same as the cooks’ pay, and the cooks are complaining that their pay is less than that of the accounting clerks.
Two former employees filed pay discrimination cases against the resort. Claiming that they did not get paid as much as men doing the same work. The two employees also complained that their performance increases were less than they deserved.
Several clerical employees have been keeping track of their overtime for the past two years. They have asked about why they don’t get overtime when other organizations pay overtime to their friends in similar positions.
Some managers recently became upset with the lack of pay increases in 2009 and 2010. They decided to inflate the performance scores to get their employees more money.
Some managers are using money from other budget items that have a surplus of funds to provide bonuses to exceptional employees.
Several employees have complained about their wages to their managers. The employees are using data from the internet, specifically salary.com, as a basis for their complaints.
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