Looking to Benchmark Pay?
Your Turn
This exercise is available to Assessor subscribers only.
Now it's your turn to solve a real-life problem!
If you have a subscription to ERI's Salary Assessor (SA), analyze the following problem:
Problem Statement
You have been assigned the task of developing an incentive pay plan for EEC, which is currently building a warehouse in Akron, Ohio. The facility is scheduled for completion toward the end of the year in November, and the bonus amounts, based on end-of-year annual pay, will be added to the workers' paychecks at the end of January the following year. The eSIC code is 1500, and revenue is $80 million.
You will be establishing base pay for all jobs at the median level and the organization will offer performance bonuses. If the job gets done on time, all employees will receive compensation as if they performed at the 75th percentile. Every week that the plan gets completed early will raise the performance percentile by 5%.
Example: If the facility gets completed 3 weeks early, your workers will receive incentive pay at 75% + 3(5%) = 90%.
Problem:
What would the total bonus for a Cementer with 10 years of experience be if the facility were completed 2 weeks early? Please select the closest answer.