You have been approached by Mr. and Mrs. Suarez, the owners of a newly created, highly automated, non-union glue factory in the South Bronx. The company is just eight months old. It has a staff of 42 but expects to have more than 200 within the next twelve months. Therefore, these two principals are interested in establishing a personnel or human resource function, terms with which they are generally unfamiliar. They selected you because they believe your specific preparation as a graduate of Baruch College, work experience, and background indicate an “entrepreneurial bent,” along with an expertise in compensation/benefits – an area where they feel especially vulnerable. They also feel that this position would be a real growth opportunity for you. Related to compensation and benefits (total compensation), they would like the following from you:
A. Present a proposal that will address the details of the approach you will use, assuming you decide to take the job. This proposal should include 12 monthly goals for the compensation/benefits function. Identify also what title you will suggest for the function and your reasons for its selection.
B. The Suarez couple would like you to “make your own offer”. They want you to identify the details of the compensation package they should offer you. Briefly describe the basis for the specific components.
C. Separately, they are very concerned that they are about to lose two key players to better offers elsewhere. The positions are CFO and Chemist. Both are earning $125,000 annually, with bonus potential for an additional 10% but with no benefits since they are waiting for you to make your proposals. They want you to recommend an appropriate total compensation package for each as soon as possible without doing a full-blown job evaluation program. Do you believe you can provide the information they seek, or do you feel you need to wait? Defend which position you choose to take and why. If they decide they need for you to provide a response to their original request, suggest the components for their respective pay packages.
D. Identify 3 issues and 2 major questions you need answered before you will be able to decide whether to accept or reject the offer.
E. Give the pluses and minuses of the offer. State whether you will accept their offer and the reasons for your decision.
While there is no prescribed length for this paper, you should know that the instructor believes that “brevity is the soul of wit.” In other words, in response to the question, “How long should this term paper be?” the instructor’s response is “Make the paper as long as you need to make it and as short as it can be.”
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