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HEB Grocery Company’s Remuneration System

When HR directors define the company’s goal, they conduct an analysis according to the required parameters and make a management decision. One of the important elements of the analysis is the assessment of the applicants for a vacancy, and their professional and personal qualities, which will allow solving problems for the company and make it profitable. Future employees want to find a job as quickly as possible and receive decent wages for their competencies. This paper aims to discuss the algorithm for developing a model of a remuneration system for the company.

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The labor market consists of vacant positions in companies and applicants ready to change jobs, and the price for labor is formed by the ratio of supply and demand. To acquire information on market pay, the HEB company can use publicly available salary surveys published, buy paid surveys, or analyze the labor market itself (Bornstein, 2019). However, the significant shortcomings of the surveys are the inability to verify the reliability of the data, as well as the fact that many surveys contain information not about the supply in the labor market but the salaries of employees working in a particular industry.

The algorithm for developing a model of a remuneration system in a given company is a complex consulting project. A job analysis is necessary to determine the relative weights of each type of work, which makes it possible to consistently and objectively compare different positions at the level of departments or branches of the company. Positions are assessed based on the selected criteria. They can be generalized and formal, for example, education, experience, subordination, independence, the level of contacts, the complexity of work, the cost of a mistake, etc. (Koziol & Mikos, 2019). They can also be personal and specialized, such as professionalism, communicative competence, responsibility, compliance with corporate culture, leadership qualities, personal characteristics, etc.

Each of the criteria is evaluated with a certain number of points. The scale of all possible assessments is divided into a number of intervals, which are called grades. The total amount of points received for all criteria determines the value of each specific position for the company. Depending on the number of points received, a specific position falls into one or another interval that belongs to a certain grade (Bornstein, 2019). All positions in the company are grouped according to the most common position levels. Based on the assessment of groups of positions or individual positions, they are assigned certain grades.

Performance review is a formal process in the HEB company in which managers assess an employee’s performance, identify strengths and weaknesses, offer feedback, and set goals to improve performance. What concerns pay increases, every 6 months the company gives a raise that ranges from 25 to 40 cents depending on performance (MBA Skool Team, 2020). However, more companies are now moving to a performance management system using more frequent feedback, in which managers conduct reviews on a quarterly basis. This practice can contribute to the better satisfaction of the HEB employees. Moreover, the annual raise in the company should be at least a standard 3.5% pay increase.

Properly organized performance reviews and payment methods will help the HEB employees to understand better what they are doing well, what areas need improvement, how they can raise efficiency, how well the work is aligned with the company’s goals, and whether all functions are being performed as expected. Executives who use performance reviews effectively can more easily identify the top performers, fix problems before they get worse, communicate expectations, and drive growth, development, and employee engagement.


Bornstein, J. (2019). Employees are losing: Have workplace laws gone too far?. Journal of Industrial Relations, 61(3), 438-456.

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Koziol, W., & Mikos, A. (2019). The measurement of human capital as an alternative method of job evaluation for purposes of remuneration. Central European Journal of Operations Research, 1-11.

MBA Skool Team (2020). H-E-B SWOT Analysis | Top H-E-B Competitors, STP & USP | Detailed SWOT Analysis of Brands. MBA Skool-Study.Learn.Share. Web.

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