Looking to Benchmark Pay?
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 Geographic Assessor (GA), analyze the following problem:
Problem Statement
The Home Products Co. Inc. is a major distributor of household products throughout the U.S. The company is headquartered in Akron, Ohio. They have a number of distribution centers around the country, located in the following cities:
- Bradenton, Florida
- Brownsburg, Indiana
- Baldwin, New York
- Barstow, California
- Bismarck, North Dakota
Some of the Warehouse Managers have been complaining about pay rates in their areas. You've been asked to look into establishing branch office salary structures for each of the distribution centers. There's no question about functions, as each distribution center is identical in the work performed.
Your company wants to establish a policy that if average salary levels differ by more than 7% from the headquarters' levels, you must create a separate branch-office salary structure.
Use ERI's Geographic Assessor software to determine which distribution centers will require their own salary structures. Select Akron, Ohio as the base city. On the "Comparison List" screen, input the company's headquarters warehouse pay grades of:
- Level 1: $35,000 per year
- Level 2: $42,000 per year
- Level 3: $50,000 per year
- Level 4: $60,000 per year
- Level 5: $72,000 per year
- Level 6: $87,000 per year
- Level 7: $105,000 per year
Exercise Question
The cities that require separate branch office salary structures are: