You are the Compensation Analyst for Big Blue Construction Company. Your Company is primarily focused on concrete construction projects. Recently, the President has announced the acquisition of a small quarry to help Big Blue become more vertically integrated on the supply side. The recently acquired company has Operative jobs that have never existed in your Company before. These jobs include, Mill Worker, Welder, Tool Grinder, Mixer, etc.

Big Blue Construction Company is located in Miami, FL and has Operating Revenue of 1.5 Million dollars. The company currently has a total of 517 employees.

The Compensation Director at Big Blue has asked you to assign the following jobs to the correct grade based on the current market.

  • Welder

The organizational philosophy on market pricing a position is to take the market data cuts or Relevant Labor Market that best represent the organization (Geography, Revenue, Total Employees) and average the 50th percentile for those data cuts.

The grade for the position is determined based on the closest grade midpoint to the average 50th percentile of the Relevant Labor Markets selected. This is also called a Market Match Policy.

The market data for each job is attached to this assignment. You will need to determine the data cuts that best represent Big Blue Construction Company.


Use the attached Market Data and Sample Salary Structure to create a one page report on what pay grade you should assign the Welder position at Big Blue Construction Company. Your report should be addressed to the Compensation Director and should include your analysis and justification for the Relevant Labor Market and grade assignment.

Helpful Information

Read Chapter 7!!

Make sure you only use data cuts that best represent the company and follow the Market Match Policy.

Use the attached Sample Salary Structure.

If you overprice the job, you will be overspending and may force the company to lay off employees or shut down completely.

If you underprice the job, it will be extremely hard to attract talent and vacancies will remain open for longer periods of time causing delays and effecting the revenue potential of the company.