Assignment 2

Name: Abir Mohd Shad

ID:153269

Job that I would like to obtain:

I would like to get a job as a financial analyst. As I am doing my major in finance, I will prefer a

job which is related to my study. So, get a job as a financial analyst would be my preference.

Pay rates financial analyst job in three different cities:

The average salary for Financial Analyst is $67,069 per year in the Toronto, ON Area. The

average additional cash compensation for a Financial Analyst in the Toronto, ON Area is $5,508,

with a range from $1,874 - $16,185. Salaries estimates are based on 2207 salaries submitted

anonymously to Glassdoor by Financial Analyst employees in the Toronto, ON Area.

The average salary for Financial Analyst is $74,229 per year in the Edmonton, AB. The average

additional cash compensation for a Financial Analyst in the Edmonton, AB is $6,588, with a

range from $3,788 - $11,456. Salaries estimates are based on 101 salaries submitted

anonymously to Glassdoor by Financial Analyst employees in the Edmonton, AB.

The average salary for Financial Analyst is $71,119 per year in the Vancouver, BC. The average

additional cash compensation for a Financial Analyst in the Vancouver, BC is $6,475, with a
range from $1,665 - $25,179. Salaries estimates are based on 308 salaries submitted

anonymously to Glassdoor by Financial Analyst employees in the Vancouver, BC.

Change in pay rates within last five years for financial analyst job:

For financial analyst job there is no such valid data for change in pay rates within last five years.

But according to the pay trend for financial analyst job in 2004, the average pay for a Financial

Analyst was $82,864. Since then, the average pay has increased to $142,877 in 2021. In 2017

the average pay for financial analyst was 135,750 and in 2021 it is 142,877. So clearly we can

see the average pay has been increased.

Gender pay gap:

The gender pay gap is the difference between wages earned by men and wages earned by

women. The typical salaries of people fluctuate depending on their gender, which is generally

referred to as the gender pay gap. It is a well-known sign of gender inequality and occurs in all

fields and levels of employment.

 For example, woman sports like soccer, hockey, cricket etc. female players earn less

compared to men sports players.

Sport Men Women

Basketball $8,321,937 $75,181

Golf $1,235,495 $48,993

Soccer $410,730 $35,000

Baseball $4,031,549 $6,000

By comparing the average earning of men and women in sports we can see there is a huge pay

gap between men and women.

 For example, women executives make about 56% less on average than men executives.

If we look at the number of people working In a executive position higher number would

be men and if we compare the pay gap there is a huge difference.

Human Resource Management Initiative

Compensation:

Compensation is a systematic approach to providing monetary value to employees in exchange

for work performed. Compensation may achieve several purposes assisting in recruitment, job

performance, and job satisfaction.

Management can employ compensation for several things to support the company's continued

existence. Compensation may be changed in accordance with the demands, objectives, and

resources of the company.

Compensation may be used to:

 Hire and keep competent personnel.

 To boost or keep up satisfaction/morale.

 Reward and promote excellence in performance.

 Realize equity both internally and outside.

 Decrease employee turnover and promote corporate loyalty.

Different types of compensation include:

 Base Pay

 Commissions

 Overtime Pay

 Bonuses, Profit Sharing, Merit Pay

 Stock Options

 Travel/Meal/Housing Allowance

 Benefits including: dental, insurance, medical, vacation, leaves, retirement, taxes...

For Example, In my sales job I get commission for every sale I make for my company which is a

compensation.

Factors that influence the setting of wages and salaries:

 Education: Education is a big factor that influence the setting of wages and salaries. It is

clear that, a more educated person will get a high paid job than a less educated person

 Experience: Experience is one of most important factor for setting wage and salaries.

Because experience makes the difference between employee. If we think about a

person with 5 years of experience and a person with 1 years of experience with same

education level most probably the company would offer higher salary to the person who

have 5 years of experience.

 Location: The cost of living, which is an important consideration for determining wages,

is significantly influenced by location and, specifically, by the price of housing. From data

we can see in big cities the salaries are higher than small cities .

 In-demand skill set: When it comes to determining compensation, key skills may be an

even more reliable metric to compare against than job title. After all, different

companies may have very different definitions of the same job title. On top of that,

many skill sets can apply to a wide variety of roles all of which are effectively competing

for the same talent. That’s why it’s important for employers to consider the value of key

skills when determining compensation.

  Supply and demand: If the demand of a job higher than the supply the wage rate would

more likely to be higher and if the supply is higher then the wage rate would be low for

a particular job. So supply and demand has influence in setting the wage and salaries.

Pay System

 Skill-based pay. With a skill-based pay system, salary levels are based on an employee’s

skills, as opposed to job title. This method is implemented similarly to the pay grade

model, but rather than job title, a set of skills is assigned a particular pay grade.

 Competency-based pay. Rather than looking at specific skills, the competency-based

approach looks at the employee’s traits or characteristics as opposed to a specific skills

set. This model focuses more on what the employee can become as opposed to the

skills he or she already has.

 Broadbanding. Broadbanding is similar to a pay grade system, except all jobs in a

particular category are assigned a specific pay category. For example, everyone working

in customer service, or all administrative assistants (regardless of department), are paid

within the same general band. McDonald’s uses this compensation philosophy in their

corporate offices, stating that it allows for flexibility in terms of pay, movement, and

growth of employees (McDonald’s Corporation, 2011).

 Variable pay system. This type of system provides employees with a pay basis but then

links the attainment of certain goals or achievements directly to their pay. For example,

a salesperson may receive a certain base pay but earn more if he or she meets the sales

quota.
Laws and regulations affecting compensation:

There are some laws and regulation that affects the compensation. For example, law for

minimum wage rage among provinces. A company cannot hire employee paying less than the

minimum wage rate of the province set by government. Law for ensuring equal pay for men

and women. There are so many other laws that affect the compensation which work under te

Canada labor standards regulation.

Pay equity, Pay transparency, Pay compression:

Pay Equity is "equal pay for work of equal value". Pay equity has been recognized as a

fundamental human right for many decades at the international level.Pay equity requires

employers to identify and correct the gender discrimination that may be present in their pay

practices and to adjust the wages of employees in female job classes so that they are at least

equal to the wages of employees in male job classes found to be comparable in value based on

skill, effort, responsibility and working conditions. According to the Act, all employees –both

men and women– in undervalued female job classes would receive pay equity wage

adjustments.

Pay transparency refers to a pay communications policy in which a company voluntarily

provides pay-related information to employees for example, about the process of the pay

system (process transparency) and actual pay levels or ranges (outcome transparency), or even

an open policy for employees to freely share information about their pay (communications

transparency). Companies around the world have been increasingly adopting pay transparency
policies and practices as a means of narrowing the gender pay gap and fostering an engaged

and positive working environment that builds trust.

Pay compression (also referred to as wage compression or salary compression) is when

employees who have been in a job for a long time makes less than new hires in the same

position. With pay compression, there are small differences in pay that ignore experience, skills,

level, or seniority. We see pay compression happen when starting salaries for new employees in

a particular job title are set too close to the wages of your existing workers. In really awful

circumstances, the starting salaries exceed what your current employees are earning, even if

your tenured employees have more skills and experience.

Skill audit:

The Job Skill required My skills

Financial Analyst Strong Microsoft office and excel Has some good skill using Microsoft

skills, experience using ERP office and excel.

system

Strong problem solving and From my current Job I have

analytical skills. acquired some good problem-

solving skill

Excellent interpersonal and From my job experience I got some

communication skills. good communication skill.

Reference:

https://open.lib.umn.edu/humanresourcemanagement/chapter/6-3-types-of-pay-systems/

https://www.payscale.com/compensation-trends/what-is-pay-compression-and-how-do-

you-address-it/

https://www.salary.com/passages/eight-factors-that-can-affect-your-pay/2/

https://resources.careerbuilder.com/recruiting-solutions/how-to-build-employee-

compensation-programs

https://hr-guide.com/Compensation/Compensation_Overview.htm

https://online.adelphi.edu/articles/male-female-sports-salary/