Compensation and Benefits Strategies Recommendations Essay
Compensation and Benefits Strategies Recommendations
As we put this paper together, let’s make sure we cover all the requirements: Conduct a market evaluation by researching what companies in the relevant market are providing to employees from a total compensation perspective.
Recommend a compensation structure.
Recommend the position in the market.
Create a total compensation and benefits strategy.
Consider the use of performance incentives and merit pay to recognize and engage employees. Identify laws related to the benefits and pay program.
A. Cody – Comparable to other businesses in the Area (what should the client choose as a benefit package)? Austin, TX average salary for a driver with experience is 38k. Other services are hiring in new drivers with clean credentials for $15 an hour plus tips. Austin drivers make about 6% less then the national median. This data was collected from indeed.com
B. Patricia – Depending on the location check the Market or Strategy to see if it will work there. Landslide Limousine must take a close look at all competitors before building any benefit and compensation package. Once Landslide Limousine has pin point what the other competitors are offering their employees Landslide then can have a clear view of the market and how they can possibly influence potential employees to come and work for the company. Currently there are 122 limousine services in Austin, Texas according to the yellow pages, and they all offers the best service at an affordable price. Landslide Limousine will have to offer an excellent benefits package if it desires to bring aboard experienced recruits and retain any recruits. Landslide Limousine will have to be patient in the beginning of their business and allow the business to flourish to be able to meet the expense of similar packages that would compare to competitors.
Landslide Limousine business will be at the lower end of the market until the business picks up. The company will have to create a creative way to attract and retain skillful employees. Our recommendation is for Landslide to use a strategic plan that will separated themselves from the competitors by using an old fashioned marketing way. To bring the finest and positive employees to work for a small business the company will have to demonstrate that their mission is to inspire and implement great values to the company that will benefit the community. Landslide should consider marketing themselves out in the community by advertising the positions that will be available and at the same time introduce their company and what it has to offer. The marketing plan should include information on what the new recruits can attain, what expertise are required and what opportunity they can develop. What attracts employees to compensation package differ for each employee. A higher wage may appeal a younger generation that is single, however an older generation with a family may contemplate on having a job that offers flexible hours.
We recommend for Landslide Limousines to include monetary and non-monetary components. The business must be competitive with the salary and benefits, such as health insurance, retirement plans and bonuses. The company may want to incorporate compensation for client satisfaction by rewarding employees with bonuses. Every business recognize that keeping client satisfied is a major part of developing a successful business. When deciding what wage to start an employee the company may want to separate employees by experience and skill required for the position. All open position will be given compensation similar to the marketplace average rate. The salary rate according to Simply Hire starts with the minimum wage of $15.60, but not exciding$ 20.65 according to Pay Scale Human Capital.
Landslide Limousine may want to consider if their budget permits it to start their wage in between the minimum and max making the start wage at $18.00 this amount will defiantly help the new company stand out from the rest of the competition. Limousine chauffeurs average $30,000 a year in Austin, Texas while limousine chauffeur averaged $18.22 an hour making $35,000 annually in Houston, Texas. By creating and attractive compensation packages will ensure a successful recruitment rate, retention rate and employee satisfaction. The process of creating a benefits package for 25 employees will feel as a sensible expense, but the bottom line will be that at the end of the day the company will not make a profit. The company must acknowledged that the benefits package will not be a reasonable expense.
C. Jose – Based on the number of employees what is the best plan? And will the company add to the plan?
D. Seneca – Based on the annual net revenue of the company we chose does the plan work for the employees and Company? Based on Landslides plan to have 25 employee’s and a net revenue of -50,000, the focus should be on having an incentives plan in place. Knowing that Landslide Limousines plans to operate with a negative budget, and will not be able to offer any benefit compensation packages to it workers, having a strong incentives program in place is very pivitol to retain it’s employee’s. Holding quality employees involves a tactical plan for benefits that rewards personnel for business devotion. This inspires new staff to make a pledge to build a profession with your business and prevents traditional employees from leaping to other corporations. These incentive systems should be easy for workers to understand and achievable enough at its lower levels to reassure employees to work tougher to reach their goals.
A compensation system with performance levels that are too high for employees to reach early on in the process won’t encourage harder work because employees will simply ignore it. Making this syestem Merit based will be the simplest way to operate and reward individuals for there work. In order for this system to be effective, the merit pay program must certify that rewards provided to the best personnel will be noticeably better than growths given to normal or below-average worker. The theory of performance-based compensation for employees is that they should be compensated generously for out performing their co-workers, but if a worker performance is ordinary, that worker compensation should show that
E. Michael – Finally each company is expecting the Revenue growth to stay the same for either the 1st or 2nd year does the plan we chose for them accommodate these percentages.
Whatever we will conclude with our paper.
http://www.payscale.com/research/US/Job=Chauffeur/Hourly_Rate http://www.simplyhired.com/salaries-k-limousine-driver-l-austin-tx-jobs.html http://www.yellowpages.com/austin-tx/limo-service?s=relevance http://smallbusiness.chron.com/advantages-teambased-incentive-pay-plans-21693.html http://www.sibson.com/services/performance-and-rewards/pay-for-performance/incentive-plan-design/