Fastcat Phase Ii

FastCat Phase II Report

COHR 305 – W14 Term 2

Prof. Danielle van Jaarsveld

Compensation Advisors:

AnishaParmar 46705109

Thảo Nguyễn17287146

Jamie Jian 29763109

Shelia Xu 53888129

* Contents

1 Executive summary 3

2 Strategy for external competitiveness 4

2.1 Best Alternatives for FastCat 4

2.2 Pay Level and Mix of Forms 5

2.3 Integrating the External and Internal Structure 6

3 Survey 6

3.1 Relevant Market 6

3.2 Job Matches 7

3.3 Forms of Pay 9

3.4 Pay Mix by Job Family 11

3.5 Aging of Data 13

3.6 Compensation Metric 13

3.7 Pay policy line 13

3.8 Good Fit 14

4 Integrating External and Internal Structure 16

4.1 Broad-banding 16

5 Conclusion 18

6 References 20

7 Appendices 20

FastCat Phase II

Executive summary

The second phase of our analysis and re-evaluation of FastCat’s approach towards compensation focuses on the strategy for external competitiveness. While FastCat is undergoing a large amount of growth internally, the external environment it competes in must be considered in decision making and in the decisions surrounding its compensation system. In our following proposed external competitiveness strategy, we have identified a system that strengthens FastCat’s focus on innovation and flexibility in the face of growth while adhering to the seven compensation objectives identified in our Phase 1 Report (See Appendix A). Our goal is to establish a fair, clear and competitive compensation system for FastCat.

After our meticulous analysis, we have benchmarked FastCat jobs to 27 small and medium size firms in the Software and Finance industry to obtain external market pay data. We decided to employ a match policy in total compensation and differentiate ourselves by leading in benefits and training. However to balance the cost without affecting our bottom line, we will be slightly lagging in base wage. The pay mix is approximately 65% in base wage, 25% in benefits, 7% in training funds, and 3%...