Compensation and Benifits Strategies Recommendations Wk3 Team A
Compensation and Benefits Strategies Recommendations
Angela Garrett, Bessie Fuller, Catherine Spivey, Chandell Tyghter, Janell Jernigan
HRM/531 Human Capital Management
December 8, 2014 Doreen Lawrence
Compensation and Benefits Strategies Recommendations
In this scenario, Team A has agreed to work with a small business, Landslide Limousine. Bradley Stonefield is our client whom we must develop some compensation and benefit recommendations. Landslide Limousine is a small business with approximately 25 employees that is located in Austin, Texas. First, Team A will conduct a market evaluation by researching what companies in the relevant market are providing to employees from a total compensation perspective. Second, recommend a compensation structure. Third, recommend the position in the market. Fourth, create a total compensation and benefits strategy. Fifth, consider the use of performance incentives and merit pay to recognize and engage employees. Lastly, identify laws related to the benefits and pay program.
Market Evaluation
On account of the tight competition in Austin Texas, it will be challenging as a small business owner starting out to be competing with the larger companies in the market. Luckily, Austin’s average pay for a limousine driver is 6% lower in this city than the national average which will be a benefit to Landslide Limousines. Austin has over 400 different competing companies in the area so having an upper hand on the total compensation of its employees will be highly beneficial. When looking at the area of competitors many do not offer health insurance or offer very little coverage to its employees. Between these companies very few allow the drivers to take all of their tips or compensation for these services. Along with these lacks of benefits, problems that could also occur in this market is the high turnover rate due to low wages. By offering these additional benefits that other competitors are not, it allows
Angela Garrett, Bessie Fuller, Catherine Spivey, Chandell Tyghter, Janell Jernigan
HRM/531 Human Capital Management
December 8, 2014 Doreen Lawrence
Compensation and Benefits Strategies Recommendations
In this scenario, Team A has agreed to work with a small business, Landslide Limousine. Bradley Stonefield is our client whom we must develop some compensation and benefit recommendations. Landslide Limousine is a small business with approximately 25 employees that is located in Austin, Texas. First, Team A will conduct a market evaluation by researching what companies in the relevant market are providing to employees from a total compensation perspective. Second, recommend a compensation structure. Third, recommend the position in the market. Fourth, create a total compensation and benefits strategy. Fifth, consider the use of performance incentives and merit pay to recognize and engage employees. Lastly, identify laws related to the benefits and pay program.
Market Evaluation
On account of the tight competition in Austin Texas, it will be challenging as a small business owner starting out to be competing with the larger companies in the market. Luckily, Austin’s average pay for a limousine driver is 6% lower in this city than the national average which will be a benefit to Landslide Limousines. Austin has over 400 different competing companies in the area so having an upper hand on the total compensation of its employees will be highly beneficial. When looking at the area of competitors many do not offer health insurance or offer very little coverage to its employees. Between these companies very few allow the drivers to take all of their tips or compensation for these services. Along with these lacks of benefits, problems that could also occur in this market is the high turnover rate due to low wages. By offering these additional benefits that other competitors are not, it allows
References: Bureau of Labor Statistics. (2013, May). Retrieved from Occupational Employment Statistics: http://www.bls.gov/oes/current/oes533041.htm Cascio, W. F. (2013). Managing Human resources (9th ed.), New York, NY the McGraw-Hill Companies, Inc. Experienced Limo Driver Salary in Austin, Tx. (2014, December 6). Retrieved from Indeed: http://www.indeed.com/salary/q-Experienced-Limo-Driver-l-Austin,-TX.html Health Information Privacy. (n.d). Retrieved from http://www.hhs.gov/ocr/privacy/ Laws Affecting Benefits. (2011). Retrieved from http://www.case.edu/finadmin/humres/benefits/laws.html#hippa Strategic Plan for Employee Compensation and Benefits. (2014). Retrieved from http://smallbusiness.chron.com/strategic-plan-employee-compensation-benefits-15613.html Summary of the Major Laws of the Department of Labor. (n.d). Retrieved from http://www.dol.gov/opa/aboutdol/lawsprog.htm