Run A Regression Analysis Job Evaluation Weighted Points Avg. $ X Y Dealer 120 19944.44 Shark 145 29458.33 Laborer 175 34000 Banker 215 56875 Consultant 245 62900 Completion of: Task A: Conduct a simple regression in Excel to create a market pay line by entering the job evaluation points (on the X axis) and the respective weighted average market base pay (on the Y axis) for each benchmark job. Completion of
Task B: What is your R squared (variance explained)? Is it sufficient to proceed? Completion of
Task C: Calculate the predicted base pay for each benchmark job. Completion of
Task D: Because your company wants to lead in base pay by 3 percent, adjust the predicted pay rates to determine the base pay rate you will offer for each benchmark job. Completion of
Task E:
Task H: Create pay grades by combining any benchmark jobs that are substantially comparable for pay purposes. Clearly label your pay grades and explain why you combined any benchmark jobs to form a grade Completion of
Task F: Use your answer to Task H to determine the pay range (i. e., minimum and maximum) for each pay grade. Completion of
Task G: Given the pay structure you have generated, consider the following: Does this pay structure make good business sense?
Do you think it is consistent with the organization’s business strategy? What are the implications of this pay structure for other HR systems, such as retention and recruiting