Carter Cleaning Centers does not have a formal wage structure nor does it have rate ranges or use compensable factors. Wage rates are based mostly on those prevailing in the surrounding community and are tampered with an attempt on the part of Jack Carter to maintain some semblance of equity between what workers with different responsibilities in the stores are paid. Needless to say, carter does not make any formal surveys when determining what his company should pay. He peruses the want ads almost every day and conducts informal surveys among his friends in the local chapter of the Laundry and Cleaning Trade association.
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While Jack has taken a “seat – of – the pants” approach to paying employees, his salary schedule has been guided by several basic pay policies. While many of his colleagues adhere to a policy of paying absolutely minimum rates, Jack has always followed a policy of paying his employees about 10% above what he feels are the prevailing rates, a policy that he believes reduces turnover while fostering employee loyalty. Of some what more concern to Jennifer is her father’s informal policy of paying men about 20% more than women for same job. Her father’s explanation is, “They’re Stronger and can work harder for longer hours, and besides they all have families to support.”The New Pay Plan:The New Pay Plan: