Compensation Philosophy
Compensation Philosophy
Amanda Cunningham
Ashford University
Compensation and Benefits
#Bus681
Instructor: Thomas Javarinis
July 15th, 2013
Compensation Philosophy
Introduction
The short term lending industry has been one of great scrutiny for many years. It has been well known the controversy of whether these businesses hurt or help the middle class. But what no one ever talks about are the employees that work in this industry. When these businesses are shut down state to state, it is not just the borrowers that are affected and left with no way to pay their bills, but also the lives and financial security of employees that are lost as well.
Current Compensation Philosophy Advance America is a leader in the payday loan and short term lending industry. Let’s look at the compensation philosophy for different levels of employment, nonexempt hourly, non exempt salary and officers and executives. Nonexempt hourly employees are nonunion and are paid above market, nonexempt salaried employees are paid at market and officers and executives are paid above market. At Advance America, all employees that are center level managers and lower are hourly employees. The Average wage for center managers is between $10.08 and $20.73 per hour (www.payscale.com). The average wage for customer service representatives is between $7.83 and $13.91 per hour (www.payscale.com). Advance America is not known for hiring part time employees due to scheduling. Advance America requires center level employees to be available from 8am-8pm everyday and provide their own reliable transportation (www.advanceamerica.net). The hourly employees have a variety of benefits, health, dental, vision, 401k, Paid time off, The next level of employment is the divisional and regional directors of operations. These employees are salaried and receive an average salary of $49,000 to $60,000 for Divisional Director and $118,000 to $126,000 for Regional Director (glassdoor.com).
Amanda Cunningham
Ashford University
Compensation and Benefits
#Bus681
Instructor: Thomas Javarinis
July 15th, 2013
Compensation Philosophy
Introduction
The short term lending industry has been one of great scrutiny for many years. It has been well known the controversy of whether these businesses hurt or help the middle class. But what no one ever talks about are the employees that work in this industry. When these businesses are shut down state to state, it is not just the borrowers that are affected and left with no way to pay their bills, but also the lives and financial security of employees that are lost as well.
Current Compensation Philosophy Advance America is a leader in the payday loan and short term lending industry. Let’s look at the compensation philosophy for different levels of employment, nonexempt hourly, non exempt salary and officers and executives. Nonexempt hourly employees are nonunion and are paid above market, nonexempt salaried employees are paid at market and officers and executives are paid above market. At Advance America, all employees that are center level managers and lower are hourly employees. The Average wage for center managers is between $10.08 and $20.73 per hour (www.payscale.com). The average wage for customer service representatives is between $7.83 and $13.91 per hour (www.payscale.com). Advance America is not known for hiring part time employees due to scheduling. Advance America requires center level employees to be available from 8am-8pm everyday and provide their own reliable transportation (www.advanceamerica.net). The hourly employees have a variety of benefits, health, dental, vision, 401k, Paid time off, The next level of employment is the divisional and regional directors of operations. These employees are salaried and receive an average salary of $49,000 to $60,000 for Divisional Director and $118,000 to $126,000 for Regional Director (glassdoor.com).
References: Martocchio, J.J. (2011) Strategic compensation: A human resource management approach (6th Edition). Upper Saddle River, NJ: Prentice Hall. ISBN: 9780136106401. www.payscale.com www.businessweek.com www.advanceamerica.net Advance America, Cash Advance Centers Inc, (2012). United States Securities Exchange Commision. Washington, D.C. 20549. Form 10-K/A. Amendment No.1 retrieved from: http://www.faqs.org/sec-filings/120430/Advance-America-Cash-Advance-Centers-Inc_10-K.A/#Item11_ExecutiveCompensation__192559 Hodak, M. (2011). What 's your compensation philosophy? Directorship, 37(3), 66-69,4. Retrieved from http://search.proquest.com/docview/873824666?accountid=32521