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You are the human resources (HR) manager for a technology company that provides technical support for hospitals using computer systems that share information. Your company has just been awarded a new contract that is requiring a huge increase in the organization's workforce. The contract will involve providing technical support for several large hospital systems in the Midwest. As a result, you have been asked to outline the process that you will use to develop an internally consistent compensation system and present it to the owners of the company for approval. Create a minimum five-page paper in which you address the following issues: Describe the reasons why an internally consistent compensation system is necessary. Assess the impact of the Civil Rights Act of 1964, the Bennett Amendment, and Executive Order 11246 on compensation practices. Outline the process involved in creating an internally consistent compensation system. In the introduction to your paper, create a fictional name and location for your company. Make sure that your paper includes enough information to convince the owners that the time, effort, and manpower that this process will take will be worth it to the company in the long run. Adhere to APA Style when constructing this assignment, including in-text citations and references for all sources that are used.

Sample Paper For Above instruction

Introduction: Establishing a Strong Foundation for Compensation

Alliance Tech Solutions, headquartered in Chicago, Illinois, is a rapidly expanding technology firm specializing in providing computer systems support for hospital networks across the Midwest. As the company secures a significant new contract involving the support of multiple large hospital systems, it becomes imperative to reevaluate and develop an internally consistent compensation system. This strategic move ensures fairness, legal compliance, and competitive advantage, ultimately supporting the organization's growth and stability.

The Necessity of an Internally Consistent Compensation System

An internally consistent compensation system is critical for maintaining organizational equity, motivating employees, and ensuring legal compliance. Equity within the organization fosters employee satisfaction, reduces turnover, and aligns employee efforts with corporate goals (Milkovich, Newman, & Gerhart, 2016). Without a structured approach, disparities may arise, leading to dissatisfaction, decreased productivity, and potential legal disputes. Furthermore, a well-designed compensation structure helps the company attract and retain top talent, especially important in a competitive tech support industry where specialized skills are in high demand.

Legal Framework Impacting Compensation Practices

The Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex, or national origin, which influences how compensation is structured—it must be equitable across different groups (EEOC, 2020). The Bennett Amendment clarifies that claims of wage discrimination under Title VII must be evaluated under the same standards used for claims under the Equal Pay Act. Executive Order 11246 mandates nondiscriminatory practices in federal contracting, requiring contractors to implement affirmative action plans and pay transparency (OFCCP, 2018). These legal statutes collectively compel organizations to adopt fair, transparent, and legally compliant compensation policies, avoiding costly litigation and reputational damage.

Process for Developing an Internally Consistent Compensation System

The process begins with conducting a job analysis to define roles, responsibilities, and required skill levels. Next, a job evaluation method—such as point-factor analysis—is used to determine internal job worth and establish a pay hierarchy (Cascio & Boudreau, 2016). Market research then compares company pay scales with industry standards to ensure competitiveness. Based on this data, a salary structure is developed that aligns internal job evaluations with external market rates, ensuring internal pay equity and market competitiveness. The final step involves documentation, approval, and implementation, accompanied by ongoing reviews to adjust for market changes and organizational growth.

Convincing the Owners of Investment Worth

Implementing a comprehensive compensation system requires initial investment in time, workforce, and resources. However, the long-term benefits include enhanced employee motivation, legal compliance, reduced turnover costs, and a stronger employer brand—factors that directly contribute to organizational success (Gerhart & Rynes, 2018). Given the scale of operations and the complexity introduced by supporting multiple hospital systems, this systematic approach offers a strategic advantage over ad hoc or inconsistent pay practices.

Conclusion

Developing an internally consistent compensation system is essential for alignment with legal standards, organizational fairness, and competitive positioning. In light of the impending workforce expansion, the strategic steps outlined—including thorough job analysis, evaluation, market comparison, and continuous review—are vital investments that will yield sustainable benefits for Alliance Tech Solutions. This process not only safeguards the organization against legal risks but also enhances employee commitment and operational effectiveness, securing its future growth in a competitive industry.

References

• Cascio, W. F., & Boudreau, J. W. (2016). The search for global competence: Are we there yet? Journal of World Business, 51(1), 105-117.
• EEOC. (2020). Coverage of the Civil Rights Act of 1964. U.S. Equal Employment Opportunity Commission. https://www.eeoc.gov/statutes/civil-rights-act-1964
• Gerhart, B., & Rynes, S. L. (2018). Compensation: Theory, evidence, and strategic implications. In Milkovich, G., Newman, J. M., & Gerhart, B. (Eds.), Compensation (12th ed., pp. 50-78). McGraw-Hill Education.
• OFCCP. (2018). Executive Order 11246: Equal opportunity in federal contracting. Office of Federal Contract Compliance Programs. https://www.dol.gov/agencies/ofccp/about/eo11246
• Milkovich, G. T., Newman, J. M., & Gerhart, B. (2016). Compensation (12th ed.). McGraw-Hill Education.