Compensation Manual-

Viso Energy Drink

Project Description

Compensation Administration is the systematic approach to determining the forms of pay that an employee should receive. A strategic pay strategy helps employers in recruitment, employee retention, and creates the perception of a fair and equitable workplace among employees. A Compensation Manual is the comprehensive documentation of the process used to create the pay strategy. 

Compensation Manual 

Creating a Pay Structure for VISO Corporation 

For this project, I assumed the position of an HR Manager to develop a pay structure for VISO, a nutraceutical energy drink company. I followed a series of steps that were guided by research, theory and best practices in the industry. The result is an internally aligned pay structure. Please see below for the methodology. 

Company Overview


Energy Drink

The first step in creating an appropriate pay structure is to get an in depth understanding of the organization and its industry. This includes familiarizing yourself with the company's history, business strategy, and the industry it is in. The target consumer audience should be identified, along with the most significant competitors in the relevant labor market. 

The Job Evaluation Process

The Hay Plan Method

The job evaluation process systematically compares jobs to one another to determine the relative worth of each position. The Hay Plan Method was used to establish the 5 compensable factors most relevant to Viso's strategy. Each position within the company was analyzed and given a score based on how much of each compensable factor they possessed. Each position was then compared to one another to establish their relative value. 

Pay Strategy

The Hay Plan Method

After establishing the relative value of each position within the company, the external market was then analyzed to determine their worth in the industry. Three sources of pay data were consulted: O*Net,, and After carefully considering external market data and the results of the Hay Plan Method, the following pay strategy was created.


This manual was my first exposure to Compensation as a discipline. Developing a pay structure helped me strengthen my intellectual flexibility by challenging me to explore new methods of data collection, analysis and reporting than I was used to. As a Psychology major, I am used to reporting in APA style, so it took me out of my comfort zone to create such a robust project outside of this style. By doing so, I feel that I have strengthened my flexibility, reliability and integrity. 


This project was completed within the confines of a strict 16 week deadline. In order to successfully do that, I had to quickly familiarize myself with the discipline, including prominent theories, terminology, and best practice. The flexibility to adapt to imposed deadlines is a great skill to posses in the workforce. 


I dedicated a great amount of time to conducting research on theories, case studies, and best practice to learn the proper terminology and background information to make informed decisions. As a result, I am confident in the recommendations I made to Viso Corporation. 


As previously mentioned, this project was given a strict deadline. In order to ensure quality results, no shortcuts were taken. I spent the time consulted a number of resources to make sure I had the most accurate and up-to-date information.