Ensure internal and external equity

1. Home Cleaning Inc., a mid-sized home cleaning services firm, located in Mississauga,

Ontario wants to ensure that its payment systems are internally fair and externally competitive

in the labour market. The CEO, who believes the organization’s compensation system can

help it achieve its goals, has hired you to re-design the base pay for four key jobs in the

organization: Customer Service Manager, Senior Customer Service Representative, Junior

Customer Service Representative, and telephone receptionist. The firm has about 50

employees hired in these four jobs.

Using a point-method job evaluation system, discuss in detail how you would go about

establishing a compensation (base pay) system for Home Cleaning Inc. The process

should ensure internal and external equity. Make assumptions, as necessary.