Case Study: Verizon Wireless



Case Study: Verizon Wireless

Verizon Wireless is the trade name of Cellco Partnership, which owns and operates the largest mobile telecommunications network in the United States, based on a total of 89 million U.S. subscribers. Headquartered in Basking Ridge, New Jersey, the company is a joint venture of U.S. telecommunications firm Verizon Communications and London-based multinational mobile network operator Vodafone Group, with 55 and 45 percent ownership respectively. Verizon Wireless has the largest revenue of all United States wireless companies reporting $58.6 billion in 2008.

Verizon Compensation Plan

Compensation is one of the tools that allow organizations to recruit and retain top level employees. The challenge employer's face is establishing a fair and equitable compensation plan that the company is willing and able to pay for this top level talent. Executive Compensation, Sales Compensation (Base Pay plus Commission), Salary, and Hourly Wages are several compensation methods that are commonly used by companies. Each method can have different impacts on employees and organizations.

All companies with employees must determine how and what to pay their workers, and when to offer things like raises, bonuses and other incentives. Businesses of all types tend not to do this haphazardly. Rather, they evolve what is called a compensation philosophy. This is an actual plan for how employees are to be paid, when payments will rise, and when bonuses are appropriate. Such a plan is often made available to employees, so they have a sense of the organization's philosophy and can thus determine their treatment by the organization, as it relates to compensation, not just at present but also in the future.

Verizon Compensation philosophy is to “provide salary range that matches market value prices and that gives employees something to aim for.” (Verrizon Wireless Annual Report, 2008)

Base pay System

At verizon the job evaluation is a tool ...