HRM 5400 Module 1 Written Assignment: A Total Compensation Strategy for a Software Firm Example

Reviewed by Edgar Pennington, MBA Thomas Edison State University Updated October 2026

This HRM 5400 Module 1 example answers the opening written assignment in Lifestyle Benefits and Compensation in the New Millennium, a course in TESU's Master of Science in Human Resources Management. HRM-5400 opens with strategic perspectives on total compensation, asking how a company's strategy should shape what it pays, how it pays and what it offers beyond salary. The sample introduces Brightwater Systems, a composite Princeton, New Jersey, software company of 220 people whose pay program the course redesigns module by module. It defines total rewards, diagnoses the company's current pay against its growth strategy, applies the textbook's four strategic decisions and sets objectives that the job evaluation, market pricing, performance pay and benefits modules will carry forward.

CourseHRM-5400 Lifestyle Benefits and Compensation in the New Millennium
ModuleModule 1
Paper typeModule 1 written assignment: introduction to compensation
LengthAbout 597 words, 5 pages
FormatAPA 7 student paper
SchoolThomas Edison State University
ProgramMaster of Science in Human Resources Management
UpdatedOctober 2026

Free sample paper for HRM 5400 Module 1

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Paying for Growth: A Total Compensation Strategy for Brightwater Systems

Student Name

Master of Science in Human Resources Management, Thomas Edison State University

HRM-5400: Lifestyle Benefits and Compensation in the New Millennium

Mentor Name

Month Day, Year

What this page is doingThe title ties the compensation question to the company's business strategy, the starting point the course textbook recommends.
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Paying for Growth: A Total Compensation Strategy for Brightwater Systems

Introduction

Compensation is usually an organization's largest controllable cost and one of its strongest signals about what it values. Milkovich et al. (2014) describe a strategic approach to pay as one that starts from the business strategy and asks how pay can help the organization win. This assignment applies that approach to Brightwater Systems, a composite software company in Princeton, New Jersey, that sells grid analytics software to electric utilities, employs 220 people and plans to grow to 400 within three years.

What Total Compensation Includes

Total compensation includes cash pay, such as base salary, merit increases and incentives, and benefits, such as health insurance, retirement contributions, paid time off and income protection. The broader idea of total rewards adds relational returns: development, recognition, flexibility and the work itself. Benefits are a large share of the package. In private industry they made up about 30 percent of employer compensation costs in late 2023 (Bureau of Labor Statistics, 2024), which means a pay strategy that ignores benefits ignores almost a third of the spending.

Diagnosing Brightwater's Current Pay

Brightwater grew from 40 to 220 employees in five years without a formal pay structure. Salaries were set by offer negotiations, so employees doing similar work are paid differently. Engineers' base pay averages about 10 percent below what competitors in the region pay, and voluntary turnover among engineers reached 19 percent last year. Support staff are paid near the market but have no clear path to higher pay. The company offers a standard health plan, a 401(k) with a 3 percent match and equity grants made at the founders' discretion. In short, Brightwater's pay is neither aligned with its strategy nor consistent inside the company.

What this page is doingThe diagnosis names three measurable symptoms, the engineering pay gap, turnover and inconsistent offers, so later modules have a baseline to improve on.
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Four Strategic Decisions

Milkovich et al. (2014) organize pay strategy around four decisions.

The objectives follow from the strategy. Brightwater competes on product innovation, and its product depends on a small number of experienced engineers who can leave for larger technology firms. Gerhart and Rynes (2003) note that pay decisions affect both how hard employees work and which employees an organization attracts and keeps; for Brightwater, the second effect matters most. A lead policy for engineering signals that the company values that talent, while a match policy elsewhere controls cost.

Strategic decisionRecommendation for Brightwater
ObjectivesAttract and keep engineers, reward product delivery and keep total pay costs below 55 percent of revenue
Internal alignmentA single job evaluation framework with career levels for technical and managerial paths
External competitivenessMatch the market for most jobs and lead it by about 5 percent for scarce engineering roles
Employee contributionsMerit increases tied to performance and position in range, plus a company bonus tied to annual recurring revenue

Legal and Ethical Starting Points

The redesign must respect pay law. The federal equal pay rule, codified at 29 U.S.C. § 206(d), requires women and men in substantially equal jobs to be paid alike, and New Jersey's equal pay law extends that protection to other protected classes. New Jersey also requires employers with ten or more employees to include pay ranges in job postings from June 2025. Inconsistent offers make Brightwater vulnerable on both counts, which is a further reason to build a structure.

Conclusion

Brightwater's pay grew without a plan and now works against its strategy. A total compensation strategy with clear objectives, a common job framework, a targeted lead policy for engineers and pay tied to contributions gives the company a coherent program. The next modules will build each part, beginning with job analysis and evaluation.

References

Bureau of Labor Statistics. (2024). Employer costs for employee compensation, December 2023 [News release]. U.S. Department of Labor.

Equal Pay Act of 1963, 29 U.S.C. § 206(d) (2018).

Gerhart, B., & Rynes, S. L. (2003). Compensation: Theory, evidence, and strategic implications. Sage.

Milkovich, G. T., Newman, J. M., & Gerhart, B. (2014). Compensation (11th ed.). McGraw-Hill Irwin.

What the HRM 5400 Module 1 instructions ask for

The first HRM-5400 written assignment introduces strategic compensation. Expect questions on what total compensation and total rewards include, how business strategy should shape pay, the strategic decisions a pay system must make and the role of law and ethics. Many students answer for an organization they know or a company they will use in the final project, which in this course is a compensation and benefit proposal for a new technology company. Apply the textbook's framework, use WorldatWork and other credible sources and write in APA style. Five written assignments together carry 30 percent of the grade. The company you choose here can carry through the later assignments, which makes it easier to build a consistent pay program by the final project. A diagnosis of current pay problems, with numbers where you have them, gives the strategy something specific to fix.

How the HRM 5400 Module 1 example is put together

The paper introduces the composite software company and its growth plan. A section defines total compensation and total rewards and uses federal data to show why benefits matter. A diagnosis section identifies three problems: below-market engineering pay, high engineering turnover and inconsistent offers. A table applies the textbook's four strategic decisions with a specific recommendation for each, and the text justifies the lead policy for engineers. A legal section notes equal pay law and New Jersey's pay range rule. The conclusion previews the course's later modules, which will build each part of the structure. Every recommendation in the table is tied to the business strategy described in the introduction, which is the link the module is designed to teach.

Where the marks sit in the HRM 5400 Module 1 rubric

Written assignments in HRM-5400 are graded on understanding of compensation concepts, application to an organization, critical analysis and clear, cited writing. Mentors reward answers that connect pay decisions to business strategy rather than describing pay components in isolation. Specific recommendations, such as a lead policy for a named job family, earn more than general statements. Accurate references to law and current data strengthen the answer. For the organization criterion, a table of the four decisions and clear headings make the reasoning easy to trace. Mentors also look for an awareness of cost: a strategy that leads the market everywhere ignores that compensation is the largest controllable expense. Recognizing legal requirements early, such as equal pay law, shows that the design will be workable as well as strategic.

Common HRM 5400 Module 1 mistakes, and how to avoid them

Marks slip when a paper lists kinds of pay and benefits with no tie to strategy, or proposes leading the market for every job without counting the cost. Others ignore benefits or law. Diagnose the organization's current pay before recommending changes. Apply each of the four strategic decisions. Explain why a policy fits the company's competitive position. Note the legal requirements that shape the design. Tell us about the employer you are writing on and a first sample comes back free. Write the strategy before the details, so later choices about structure and incentives have a reason. Keep the diagnosis factual and avoid blaming individual managers for problems that come from the absence of a system.

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This paper is an original model document written by our desk, not a submitted student paper and not an official Thomas Edison State University document. Read it for the moves, then write your own to the instructions in your classroom. If you want one built to your exact prompt and rubric, the first custom sample is free and arrives in 24 to 48 hours.

More HRM 5400 and Master of Science in Human Resources Management sample papers

HRM 5400 Module 1 questions, answered

Where can I find a free HRM 5400 Module 1 sample paper?

The Brightwater Systems strategy is printed in full on this page, starting with a diagnosis of its pay and ending with a choice for each of the four strategic decisions.

What is total compensation?

Everything of value an employer pays for, from wages and bonuses to health coverage, retirement contributions and time off.

What are the four strategic pay decisions?

Objectives, internal alignment, external competitiveness and employee contributions, as framed in Milkovich, Newman and Gerhart's Compensation.

What textbook does HRM-5400 use?

Milkovich, Gerhart and Newman's Compensation, eleventh edition, from McGraw-Hill.

What share of compensation goes to benefits?

In U.S. private industry, benefits made up about 30 percent of employer compensation costs in late 2023.