(The example aswer is in the attachment)

IT TAKES A SHARP PENCIL

Montgomery Sharp Pencil Accountants Anonymous is a regional accounting firm that has offices in Troy, Mobile, Montgomery, and Dothan. Montgomery Pencil employees 125 workers in total. It has been in business 30 years and over the last five years has experienced an annual growth in business of 25%. The industry average is only 10%.

Sharon Walls has been budgeted $25000 to allocate among her nine subordinates as pay raises (high level company management rarely grant proposals above the amounts allocated). Cost of living for 2003 is expected to rise at an annual 4.0%. There have been some ugly grievances at this branch over pay raises in the past, so Sharon has been strictly advised to base all of her allocations on purely objective reasons. No increase recommendation will be granted without an appropriate justification.

Your Salary recommendation should show the total amount proposed and its % of the salary. Salary increases must be distinguished based on merit adjustments (coded M), promotional adjustments (coded P), increases for promotion may be up to 5%. Equity adjustments (coded A) while all equity adjustments must be justified (this includes any communications that you would also provide the employee when giving the increase)any equity adjustment over 10% must carry additional extraordinary justifications. Round salary adjustments for CL 20 and above to the nearest $100 and round salary adjustments for the levels below CL 20 to the nearest $50.

Name

EEO Stat

Cur Sal

Last Inc%

Ratings

PT

Job Title

CL

Serv

Hi Ed

Exp

Personal Data in file

Paul

H

58,800

7%, 2/01

E 2002

27

Sr

26

30

MA Acct

42

Nearing Retirement;has be a real help in the reorganization/transition of mgt.

AA 2001

26

Acct

A 2000

25

Adsv

BA 1999

25

Crystal

W

71,400

2%

A 2002

27

Acct

24

11

PHD Acct.

28

Single, no child, married, expecting first child,

Mar-01

AA 2001

30

Advs

male clients love her.

O 2000

30

O 1999

30

Tonya

W

36400

7%

A 2002

26

ACCT

22

2

BA

8

Pro Union, 2 yrs

Jun-01

AA 2001

26

Acct.

related experience; party’s a lot; no OT

NR

NR

Scott

W

37600

9%

E 2002

28

ACCT

23

5

BA

10

Works the most overtime,

Apr-01

E 2001

27

Acct.

2 yrs related exp; looking for another job; say his salary is too low

E 2000

26

AA 1999

Joe

B

18200

NA

2002

21

Sr ACCT CLERK

16

1

BA-MGT.

12

7 years experienced highly recommended very highly; very knowlegable but does not have a high energy level; his been in twice asking about getting a raise; has a Lexis car payment to cover; also wants to know when you are going to promote him to an exempt accounting position

Kt.

Stacy

W

386000

7%

E 2002

27

Admin &

24

16

MA

19

Loyal, hard working

Jun-01

AA 2001

27

Comp

Eng.

Not an acct, real help in automating the office continues to save $

A 2000

27

Spec

with program. Skills

A A1999

27

Heath

W

460000

9%

E 2002

29

Acct Advisor

24

6

MA

24

Transfered in from another company location to help MGR with recent business increases

Feb-01

E 2001

29

Acct.

AA 2000

28

AA 1999

28

Max

W

17000

9%

AA 2002

18

Acct Clk

16

6

NA

8

Married hard worker

Jun-01

E 2001

18

4 yrs related exp; upset that new worker makes more than her; she has let this affect her performance

E 2000

18

E 1999

18

Warren

W

17100

0%

A 2002

21

Sr Acct

16

4

BA

9

Not out going, but

May-01

AA 2001

21

Clerk

Hist.

very precise; never

AA 2000

21

makes an error;

AA 1999

5 yr related exp; goes out of his way for a for a beer on way home form work; son recently maimed in a tragic car wreck; quantity of work is way down

Best Relevant Salary Data:

2002 Regional Accounting Salary Survey

Salary Salary

Accountants Accountants

All companies Big six Firms

By experience By Experience

Avg Top Qtl Avg l

New Hire 35000 37000 38500

2-4 YRS 38000 44000 47000

5-9 YRS 35000 47000 48000

10-15 YRS 49500 56000 65500

16-20 YRS 56000 59000 70200

20 + YRS 64000 75000 83000

% Raise Given 7.0 8.0 5.5

1999 Administrative Assistants 1999 Computer Specialists Salary Survey

Salary Survey

Avg Top Qtl Avg Top Qtl

5-10 yr 23000 25000 1-3 yr 50000 60000

11-15 yr 26000 29000 4-6 yr 65000 80000

16-20 yr 29000 35000 7-10 yr 85000 95000

20 + yr 30000 38000 11-15 yr 100000 110000

Over 15 120000 130000

2001 Accounting Clerk Salary

Survey Troy

Salary all Companies Avg Avg top 3 Co.

Accounting Clerk 16000 18000

Senior Acct Clerk 18000 25000