Designing a Compensation Package Summary

Designing a Compensation Package
Student’s Name
Institution
Designing a Compensation Package
Introduction
A compensation strategy is an important part of HR activities particularly in the modern business environment where employees’ needs are varied. As informed by Weathington and Weathington (2020), an effective compensation strategy must align with the overall goal and vision of the company. This paper seeks to develop a compensation package for a Recruiting Coordinator for Amazon. In this case, therefore, it is critically important that the compensation package aligns with the goals and mission of the company. This proposal begins by examining the job descriptions, method of evaluation, and the intrinsic and extrinsic benefits associated with the Recruiting Coordinator job before developing the compensation package. The remaining parts address performance measurement, appropriateness of the proposal, and the compensation strategy for the job.
Job Description
The primary role of a job description is to clarify a position’s responsibilities, duties, tasks, and working conditions (Weathington & Weathington, 2020). A job description also goes further to outline the skills, traits, and educational background required to successfully complete the requirement of a particular position. As pointed out by Weathington and Weathington (2020), since a job description details what a person does, it plays an important role in clearing up ambiguity that may be associated with the job. In fact, according to Dessler (2020), a well-thought-out job description is beneficial to everyone involved. As such, the management of the company, the employee, and other external stakeholders such as customers may benefit from a well-thought-out job description.
In the case of the position of Recruiting Coordinator for Amazon, the job description covers primary details such as job summary, job title, responsibilities, basic qualifications, and preferred qualifications (Amazon, 2021). The title of the job is Recruiting Coordinator- Amazon Digital Entertainment. As per the summary of the job, the person is expected to work closely with a team comprising recruiters where they will manage recruitment activities and build relationships with candidates. The person is expected to work effectively with candidates and clients within and without the organization and as such, communication skills are paramount. The key responsibilities associated with the position include interview scheduling, updating job postings and candidate records, monitoring recruitment activities, planning post-interview debrief meetings, and the identification of areas of improvement among candidates (Amazon, 2021). Basic qualifications include at least one year of recruitment experience, a bachelor's degree, and proficiency in Ms. Excel, Word, and PowerPoint. The preferred qualifications for the job include the ability to work in a quick-changing environment, organizational skills, exemplary customer focus, and strong communication skills, both oral and written.
From the job description of Recruiting Coordinator by Amazon, one can gather that there is an alignment of the job description with the goals and mission of the company. Amazon’s mission is to be the most customer-centric company on the planet (Amazon, n.d.). Furthermore, in its 2019 annual report, the company reiterates its relentless focus on the customers because it acknowledges their importance to the success of the company. Therefore, the fact the company mentions exemplary customer focus and communication skills means that it is looking for someone who can augment its goals and mission.
Method of Evaluation
Job evaluation is a critical component of designing a compensation strategy because it helps in determining an equitable and fair pay structure for different jobs in an organization (Weathington & Weathington, 2020). While the intuitive method may be used in job evaluation, Weathington and Weathington (2020) note that it works mainly for very small firms. Amazon is a multinational company and as a result, compensable factors can be used to evaluate the Recruiting Coordinator job. These compensable factors are measurable job aspects that can be used to establish pay rates for a different company. The point system is the most commonly used evaluation method and it utilizes compensation factors to determine the worth of each job in the organization (Suwarsono, Aisha, & Nugraha, 2019).
Compensable factors from Weathington and Weathington (2020) and table direction from Bergmann and Scarpello (2001) is used to design the job evaluation for Recruiting Coordinator for Amazon.
Compensable factors (percent)

1st Degree

2nd Degree

3rd Degree

Skill (50)

Experience

20

40

60


Education

15

30

45


Ability

15

30

45

Responsibilities (20)

Fiscal (Money/Equipment)

12

24

36


Supervisory

8

16

24

Effort (15)

Mental

8

16

24


Physical

7

14

21

Working Conditions (15)

Location

5

10

15


Hazards

6

12

18


Extremes in environments

4

8

12

Total


100

200

300

1st degree represents 3 months or less of training required
2nd degree represents 1-3 months of training required
3rd degree represents 6 or more months of training required
In the case of Amazon’s Recruiting Coordinator job, evaluation assumes that 3 months or less of training is required. Therefore, the points under the 1st degree represent the percentage of the worth of each compensable factor.
Intrinsic and Extrinsic Benefits
Intrinsic benefits seek to improve the motivation of employees. It is important to recognize that intrinsic motivation comprises that which drives employees from within. (Weathington & Weathington, 2020). Intrinsically, people are attracted to jobs they are good at and enjoy doing. In this sense, the intrinsic benefits of this proposal are made up of aspects that improve the enjoyment of the job and make employees good at them. Amazon is a company that has been instrumental in boosting the intrinsic motivation of its employees through regular-person meetings, a program called connections, and an open-door policy (Amazon, n.d.). These practices by the company, therefore, characterize the intrinsic benefits that Amazon will offer to the Recruiting Coordinator. With the company investing heavily in employee development, there is a commitment to making the employee feel part and parcel of the company. These benefits that are intrinsic in nature are instrumental in making the employee good at their work and also help them derive satisfaction from it.
Extrinsic benefits are factors from outside the person that can drive their behavior and include direct compensation such as salaries and bonuses as well as indirect compensation like ownership options, retirement options, and insurance (Weathington & Weathington, 2020). The benefits associated with the Recruiting Coordinator job are not provided in the company’s job description but from the About Amazon (n.d.) website, the company notes that it offers a beginning pay of at least $15 per hour. This is consistent w...