Compensation and Benefits Strategy
Compensation and Benefits Strategy
Landslide Limousine (LL), a small business in Austin, Texas, hired Atwood and Allen Consulting (AAC) to conduct a market evaluation and provide recommendations for the following: a position in the market, a compensation structure, a total compensation and benefits strategy, and performance incentives and merit-based pay to recognize and engage employees. This will help to identify applicable laws related to pay and benefits. This paper includes citations from one peer-reviewed book, three government websites, four commercial websites, and one University of Phoenix online course material. Market Evaluation
Atwood and Allen’s market evaluation found the average salary for a limousine driver in Austin, Texas, for 2012 was $23,550 or $11.33 per hour. The 50th percentile of pay for a limousine driver in Austin, Texas, was $22,140 or $10.64 per hour ("United States Department of Labor," 2013). The average limousine company allocates 25% of its budget for salary and benefits (Limousine, Charter, & Tour, 2012). The recent economic recovery and increased consumer demand for limousine service resulted in 61% of limousine services increasing revenue in 2012 (Romjue, 2013). Business and professional clients comprise 61% of the customer base for limousine services (Romjue, 2013) and should be the target customer base for the company.
Compensation Structure The compensation structure should reflect the company business plan and goals by placing a priority on customer service, repeat business, new client referrals, and safety. What the company can afford to pay and implementing programs to reward performance that align employee compensation with the success of the company should be the basis of the compensation structure (Cascio, 2013, p. 419). The compensation structure should keep fixed labor costs low and place emphasis on benefits, incentives, and merit based-pay. The correlation between employee compensation and the
Landslide Limousine (LL), a small business in Austin, Texas, hired Atwood and Allen Consulting (AAC) to conduct a market evaluation and provide recommendations for the following: a position in the market, a compensation structure, a total compensation and benefits strategy, and performance incentives and merit-based pay to recognize and engage employees. This will help to identify applicable laws related to pay and benefits. This paper includes citations from one peer-reviewed book, three government websites, four commercial websites, and one University of Phoenix online course material. Market Evaluation
Atwood and Allen’s market evaluation found the average salary for a limousine driver in Austin, Texas, for 2012 was $23,550 or $11.33 per hour. The 50th percentile of pay for a limousine driver in Austin, Texas, was $22,140 or $10.64 per hour ("United States Department of Labor," 2013). The average limousine company allocates 25% of its budget for salary and benefits (Limousine, Charter, & Tour, 2012). The recent economic recovery and increased consumer demand for limousine service resulted in 61% of limousine services increasing revenue in 2012 (Romjue, 2013). Business and professional clients comprise 61% of the customer base for limousine services (Romjue, 2013) and should be the target customer base for the company.
Compensation Structure The compensation structure should reflect the company business plan and goals by placing a priority on customer service, repeat business, new client referrals, and safety. What the company can afford to pay and implementing programs to reward performance that align employee compensation with the success of the company should be the basis of the compensation structure (Cascio, 2013, p. 419). The compensation structure should keep fixed labor costs low and place emphasis on benefits, incentives, and merit based-pay. The correlation between employee compensation and the