Developing a Competitive Pay Policy for ABC Retail to Achieve Market Share Growth
A strategic analysis of pay policies for competitive market positioning. This solved assignment discusses compensation structures and industry trends.
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Running head: COMPETITIVE PAY POLICY FOR ABC RETAIL 1
Competitive Pay Policy for ABC Retail
You are the HR manager for ABC Retail, an independent retail company exclusively located in St.
Louis, Missouri. The company has ten stores and considers its primary competitors Target and
Kohl’s.
The company’s market share in this area was 17.8% in 2011. They are a non-union organization and
believe that their customers are the key to success, followed by their customer service provided by
their carefully selected associates. The strategic goal for ABC Retail is to increase its market share
in the St. Louis area to 20% by 2015.
For the purpose of the assignment, each store has the following staffing:
One store manager
Three assistant store mangers
Seventeen department managers
Twenty-four shift leaders
One hundred and seventy associates
Each store has a total of 215 employees when fully staffed
Turnover for management positions were 10%, shift leaders 25%, and associates 30% for 2011.
Currently, pay for these positions was rated as “average” by management, “average to below
average” by shift managers, and “below average” by associates based on a employee pay survey
conducted in June 2012.
You have been tasked to develop a competitive pay policy for ABC Retail by senior management to
support the strategic goal to increase its market share to 20% in the St. Louis area by 2015.
Based on the Chapter 7 and 8 readings in the textbook, develop the recommended pay polic
Competitive Pay Policy for ABC Retail
Abstract
A competitive pay policy explains an association's system for contending inside focused
on work markets to select the workers it needs to make business progress (Boute, Bruggeman &
Vereecke, 2015). Such strategy guides directors in settling on powerful choices in regards to the
Competitive Pay Policy for ABC Retail
You are the HR manager for ABC Retail, an independent retail company exclusively located in St.
Louis, Missouri. The company has ten stores and considers its primary competitors Target and
Kohl’s.
The company’s market share in this area was 17.8% in 2011. They are a non-union organization and
believe that their customers are the key to success, followed by their customer service provided by
their carefully selected associates. The strategic goal for ABC Retail is to increase its market share
in the St. Louis area to 20% by 2015.
For the purpose of the assignment, each store has the following staffing:
One store manager
Three assistant store mangers
Seventeen department managers
Twenty-four shift leaders
One hundred and seventy associates
Each store has a total of 215 employees when fully staffed
Turnover for management positions were 10%, shift leaders 25%, and associates 30% for 2011.
Currently, pay for these positions was rated as “average” by management, “average to below
average” by shift managers, and “below average” by associates based on a employee pay survey
conducted in June 2012.
You have been tasked to develop a competitive pay policy for ABC Retail by senior management to
support the strategic goal to increase its market share to 20% in the St. Louis area by 2015.
Based on the Chapter 7 and 8 readings in the textbook, develop the recommended pay polic
Competitive Pay Policy for ABC Retail
Abstract
A competitive pay policy explains an association's system for contending inside focused
on work markets to select the workers it needs to make business progress (Boute, Bruggeman &
Vereecke, 2015). Such strategy guides directors in settling on powerful choices in regards to the
COMPETITIVE PAY POLICY FOR ABC RETAIL 2
organization's interest in human capital resources. How an organization explains its focused pay
approach, consequently, is instrumental to advancing pay program effectiveness. The paper will
analyze the Competitive Pay Policy for ABC Retail in order to increase its market share in the St.
Louis area to 20% by 2015
ABC Retail’s Competitive Pay Policy
A successful pay policy is a critical part of ABC Retail’s general aggressive system.
Generally as ABC Retail contends to offer its items and services, it additionally rivals with other
competitors like Target and Kohl’s for talented workers (Boute, Bruggeman & Vereecke, 2015).
Toward that end, a focused pay strategy is the foundation of ABC Retail’s human capital
investment method.
From various research companies compete depending on the following market recruiting
conditions,
Availability of qualified employees in the recruiting markets targeted
Efficiency of employers in competing for the same employees in the recruiting
market
The company’s financial resources to pay the resourceful employees and the
perception of the company in the market.
The working conditions of the company and the compensation details of the
company.
ABC Retail’s competitive pay policy will address these three economic situations. It
expresses the organization's vital position for contending inside of its enlisting markets regarding
the pay components it will offer representatives and the pay levels it will focus for every
organization's interest in human capital resources. How an organization explains its focused pay
approach, consequently, is instrumental to advancing pay program effectiveness. The paper will
analyze the Competitive Pay Policy for ABC Retail in order to increase its market share in the St.
Louis area to 20% by 2015
ABC Retail’s Competitive Pay Policy
A successful pay policy is a critical part of ABC Retail’s general aggressive system.
Generally as ABC Retail contends to offer its items and services, it additionally rivals with other
competitors like Target and Kohl’s for talented workers (Boute, Bruggeman & Vereecke, 2015).
Toward that end, a focused pay strategy is the foundation of ABC Retail’s human capital
investment method.
From various research companies compete depending on the following market recruiting
conditions,
Availability of qualified employees in the recruiting markets targeted
Efficiency of employers in competing for the same employees in the recruiting
market
The company’s financial resources to pay the resourceful employees and the
perception of the company in the market.
The working conditions of the company and the compensation details of the
company.
ABC Retail’s competitive pay policy will address these three economic situations. It
expresses the organization's vital position for contending inside of its enlisting markets regarding
the pay components it will offer representatives and the pay levels it will focus for every
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Subject
Human Resource Management