Business Rewards

INTRODUCTIONA competitive total rewards plan is essential to attracting quality talent and personnel who
can contribute to the success of an organization. An effective total rewards plan includes
both compensation and benefits.
In this task you will create a market research-based total rewards strategy that includes a
detailed compensation plan for a fictional business called The Bravo Center. This will be
essential for a revitalizing organization, like The Bravo Center, whose new owners have
committed their efforts to making the organization a success. Refer to the attached scenario
and market research document to guide your work.
SCENARIO
See the attached files
REQUIREMENTS
A. Create a total rewards strategy based on a lead, lag, or match approach to the market competition
that supports the organizational goals by doing the following (see the attached “The Bravo Center
Scenario” for organizational goals):
1. Based on external market research (provided in the attached “Market Research Data”
document), internal equity, or the needs of the organization, explain how your total rewards
strategy will lead the market, lag the market, or match the market, including a justification for
your decision.
2. Explain how your total rewards strategy supports the following two goals:
• recruitment of understaffed sections of the organization
• retention of understaffed sections of the organization
3. Provide the total rewards mix of base pay, variable pay, and benefits and explain the factors that
influenced your choices.
B. Create a compensation plan by doing the following:
1. Provide your pay mix for each job category in the organization.
Note: You may provide the pay mix as a written narrative or a chart.
Note: Refer to the table in “The Bravo Center Scenario” for an identification of each job category.
a. Justify your pay mix allocations among the various compensation areas and include reward
priorities.
b. Explain how your pay mix from part B1 aligns to the compensation strategy and to the
organization’s strategy.
2. Describe how your compensation offering would give a competitive advantage in the
recruitment of IT and marketing personnel given their unique qualifications and limited market
availability.
C. Identify and describe one internal equity factor and one other pay factor that you will consider
when you build your pay structure, based on your pay mix from part B1 and your job categories.
D. Describe two specific compensation items you will use to recruit a new chief operations officer
(COO) and include an explanation for your compensation item you have selected.
E. Describe how you will determine the rate of pay for the 18 contingent workers needed for the
grounds crew.
F. Acknowledge sources, using in-text citations and references, for content that is quoted,
paraphrased, or summarized.
VGM1: Total Rewards Strategy: Compensation
Market Research Data
Market Research Data
The data in the following table were obtained through research on compensation for the
local market within which The Bravo Center operates. Several pay points are provided to
assist in strategy formulation.
Position
Marketing
IT
Facilities Management
Operations
Grounds Manager
Grounds Supervisor
Administrative
Food Concessions
10%
$30.33
$38.89
$22.53
$17.85
$15.17
$14.79
$11.69
$9.16
25%
$46.27
$49.60
$29.04
$22.97
$19.02
$17.96
$14.24
$10.32
Mean
$61.13
$63.35
$38.00
$29.83
$28.85
$22.42
$17.83
$12.00
75%
$77.10
$74.50
$53.93
$40.42
$37.50
$29.28
$22.57
$14.52
90%
$94.72
$80.33
$71.10
$59.63
$48.82
$37.05
$28.97
$18.86
Compensation for executives is not provided because their compensation is calculated in a
different manner.
Compensation for grounds workers is also not provided because compensation decisions for
contingent workers may or may not align with the prevailing market rates.
PAGE 1
VGM1: Total Rewards Strategy: Compensation and Benefits
The Bravo Center Scenario
The Bravo Center Scenario
You have just been hired as the human resources (HR) manager for The Bravo Center, a
medium-sized stadium that serves as a venue for various events, including sporting events,
concerts, and conferences. Over the past few years, The Bravo Center has struggled, but it
was recently purchased by new owners who have pledged to restore it to its former status
as a venue of choice. The new owners have recognized that the first step in the process is to
ensure a viable employee base that will commit to the organization’s success.
Your job as the HR manager is to design a market-based total rewards strategy that will
ensure your compensation mix is competitive and attractive to prospective applicants. The
owners of The Bravo Center want to see a mix of competitive pay options. There is an
overabundance of certain positions and an underabundance of others in the market.
Consider this as you design your total rewards strategy.
There are several factors that you must be aware of as you begin to design your rewards
strategy. First, when fully staffed, the organization will employ 100 full-time personnel.
These personnel are dispersed across several different departments, including the executive
team (5 personnel), administrative (10 personnel), facilities management (5 personnel),
grounds personnel (1 manager and 1 supervisor with the rest filled by contingent workers),
marketing (3 personnel), IT (5 personnel), food concessions (50 personnel), and operations,
which includes various activities such as ticket sales, parking, and guest services (20
personnel).
In addition, the chief operations officer (COO) has been released due to performance issues,
so you will need to design a rewards offering specifically for executive-level employees.
Also, 18 contingent workers will be needed as grounds personnel to help beautify the
exterior of the facility to make it a more appealing venue to both guests and attractions.
You will be directly competing with other organizations within the city that fill similar roles,
such as restaurants, landscaping companies, and offices of other businesses, so your
strategy must be research-based and competitive in the marketplace while adhering to the
budget you have been provided. Due to budgetary constraints, you will be limited to
recommending five to eight mandatory and discretionary benefits. You will also need to
justify your recommendations by explaining how these benefits support the organization’s
goals.
The Bravo Center has struggled in the past to keep its IT and marketing teams staffed.
Traditionally, IT and marketing personnel have been difficult to attract and retain because
they possess specialized certifications and soft skills. As you develop your compensation
strategy, consider how you will recruit and retain these groups of staff members.
The Bravo Center Job Categories
Department
Executive*
Administrative
Facilities Management
Grounds
Marketing**
IT**
Number of Personnel
5
10
5
1 manager, 1 supervisor, 18 contingent
workers
3
5
PAGE 1
VGM1: Total Rewards Strategy: Compensation and Benefits
Food Concessions
50
Operations
20
* The COO position is within this job category.
** These are identified as the understaffed job categories.
PAGE 2
The Bravo Center Scenario