Evaluate The Fairness Of The Company’s Current Compensation System

You have recently been hired as the HR manager of a small furniture manufacturing company that has 63 employees. These employees include everyone from line workers to upper management. You are the first HR person the company has had. One of your first assignments was to evaluate the fairness of the company’s current compensation system.

Based on your evaluation, you have discovered a number of inconsistencies:

Some line workers earn more than managers.

Some managers earn twice as much as other managers even though the work is similar.

Some line workers are making significantly more money than others even though they are performing the same work.

What recommendations would you make to improve the consistency of the company’s compensation system?

Be sure to provide the rationale for your recommendations.

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