Bedrock and salary survey

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PLEASE READ CAREFULLY! Bedrock Insurance (Bedrock) is a property and casualty insurance company specializing in providing insurance for businesses that struggle to find coverage. Examples of such businesses include ventures less than three years old, businesses with a history of expensive claims, or those in riskier industries.
Bedrock is headquartered in Illinois with operations in Wisconsin, Minnesota, Iowa, Missouri, Indiana, Kentucky, and Michigan. Its strategy is to create a close relationship with the customers so risks, losses, and claims can be minimized through more accurate underwriting and proactive risk management.

The table below summarizes the average annual wage for employees in Bedrock’s insurance division:

Bedrock Insurance Job Title Pay Grade Average Annual Wage Number of Employees
Actuarial Analyst 3 70,389 4
Actuarial Manager 7 226,328 1
Actuary 5 103,909 3
Claims Adjuster 2 63,789 32
Claims Clerk 1 48,502 8
Claims Manager 6 110,220 2
Customer Service Managers 2 65,721 1
Customer Service Representative 1 48,153 15
Loss Control Manager 6 113,483 1
Loss Control Specialist 2 53,693 20
Sales Agent 2 57,203 113
Sales Agent Manager 4 83,681 4
Underwriter 2 57,015 6
Underwriting Manager 4 85,938 1
As the table above indicates, Bedrock has 211 employees in the division occupying 14 different job titles that are part of a 7 level pay structure (i.e. 7 pay grades).

The human resource manager for Bedrock gathered salary data from numerous salary surveys. The salary data collected is shown in the table below:

Survey Pay Grade Average Annual Wages Survey Sample Size
U.S. Chamber of Commerce Survey 1 46,530 122
U.S. Chamber of Commerce Survey 2 59,475 126
U.S. Chamber of Commerce Survey 3 96,811 91
U.S. Chamber of Commerce Survey 4 106,492 74
Bureau of Labor and Statistics 1 34,940 14,222
Bureau of Labor and Statistics 2 47,809 26,147
Bureau of Labor and Statistics 3 69,337 21,856
Bureau of Labor and Statistics 4 76,354 17,776
Bureau of Labor and Statistics 5 98,806 9,027
Bureau of Labor and Statistics 6 101,413 12,287
Bureau of Labor and Statistics 7 151,850 3,414
Compensation Consultant Survey 5 98,336 130
Compensation Consultant Survey 6 112,478 130
Compensation Consultant Survey 7 148,992 130
National Insurance Association Survey 1 37,457 3,092
National Insurance Association Survey 2 50,453 3,092
National Insurance Association Survey 3 71,100 3,092
National Insurance Association Survey 4 82,993 3,092
National Insurance Association Survey 5 102,880 3,092
National Insurance Association Survey 6 111,443 3,092
National Insurance Association Survey 7 226,328 3,092
Home State Insurance Salaries Survey 1 32,962 1,124
Home State Insurance Salaries Survey 2 46,417 887
Home State Insurance Salaries Survey 3 65,412 902
Home State Insurance Salaries Survey 4 76,354 212
Home State Insurance Salaries Survey 5 100,822 177
Home State Insurance Salaries Survey 6 101,413 163
Home State Insurance Salaries Survey 7 150,347 88
As displayed above, 5 sources of salary data were used. Each survey source contained information for numerous job titles. The Bedrock human resources manager read through all of the surveys and selected the job descriptions in each survey that were equivalent to Bedrock jobs. The equivalencies were based on the similarity of required knowledge, skills, and abilities. The corresponding pay data for the jobs listed in the surveys were then grouped into equivalent Bedrock pay grades to form a survey average annual wage.

Directives:

MAIN QUESTIONS-Construct a line chart that displays Bedrock’s pay level relative to the external market using the Bedrock and salary survey data provided above. Be sure to use weighted averages to create your market lines.

Download the MS Excel file that contains the Bedrock and survey data shown in the tables above.
Based on the chart you created, which type of pay level policy is Bedrock executing? Explain. Provide an argument that defends Bedrock’s pay level policy.
Does any of the survey data seem suspect to you? If so, which survey and why?
Copy the directives into an MS Word file (or equivalent) and write your responses below each item. Copy and paste charts as images in the Word document.

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