CompensationandBenefitsStrategiesRecommendations Upload
Compensation and Benefits Strategies Recommendations
University of Phoenix
HRM 531
March 24, 2015
Compensation and Benefits Strategies Recommendations
Introduction
Providing a first-rate compensation and benefits package for Mr. Stonefield and Landslide Limousines employees can be an important part of the recruitment and retention of top notch customer driven limousine drivers, especially since Landslide Limousines is organized as a small business in Austin, TX, and seeking to employee about 25 drivers and support staff. My function here is to conduct an analysis of the relevant market by determining what companies in this market are providing to employees from a total compensation perspective. I will then recommend a pay structure. From that analysis I will design and cobble together a total compensation and benefits strategy that Landslide Limousines can afford. Next, I will consider the use of performance incentives and merit pay to recognize outstanding employees and keep them fully engaged with their employer. Lastly, I will determine which employment laws are applicable to Landslide Limousines as they organize and do business in Texas.
Market Evaluation
Small start-up businesses like the limo service Bradley Stonefield is establishing has to face many challenges. The current unemployment rate in Austin, TX is 3.5%, well below the national average of 5.5% (BLS, 2013). Despite the relatively low unemployment rate, based on the Bureau of Labor and Statistics the average limo driver in Austin, TX makes between 6 – 10% less than the national average of $27,670, or $13.30 per hour. A Texas limo driver averages $22,620 per year, or $10.88 per hour (BLS, 2014). This standard includes both tenured and new drivers. This is well above the Texas minimum wage of $7.25 per hour, as of 2014 Bureau of Labor and Statistics.
Due to the tight competition for labor in Austin, TX, hiring qualified and experienced limo drivers for a small start-up business will be
University of Phoenix
HRM 531
March 24, 2015
Compensation and Benefits Strategies Recommendations
Introduction
Providing a first-rate compensation and benefits package for Mr. Stonefield and Landslide Limousines employees can be an important part of the recruitment and retention of top notch customer driven limousine drivers, especially since Landslide Limousines is organized as a small business in Austin, TX, and seeking to employee about 25 drivers and support staff. My function here is to conduct an analysis of the relevant market by determining what companies in this market are providing to employees from a total compensation perspective. I will then recommend a pay structure. From that analysis I will design and cobble together a total compensation and benefits strategy that Landslide Limousines can afford. Next, I will consider the use of performance incentives and merit pay to recognize outstanding employees and keep them fully engaged with their employer. Lastly, I will determine which employment laws are applicable to Landslide Limousines as they organize and do business in Texas.
Market Evaluation
Small start-up businesses like the limo service Bradley Stonefield is establishing has to face many challenges. The current unemployment rate in Austin, TX is 3.5%, well below the national average of 5.5% (BLS, 2013). Despite the relatively low unemployment rate, based on the Bureau of Labor and Statistics the average limo driver in Austin, TX makes between 6 – 10% less than the national average of $27,670, or $13.30 per hour. A Texas limo driver averages $22,620 per year, or $10.88 per hour (BLS, 2014). This standard includes both tenured and new drivers. This is well above the Texas minimum wage of $7.25 per hour, as of 2014 Bureau of Labor and Statistics.
Due to the tight competition for labor in Austin, TX, hiring qualified and experienced limo drivers for a small start-up business will be
References: (2014). Austin-Round Rock-San Marcos, TX - May 2013 OES Metropolitan and Nonmetropolitan Area Occupational Employment and Wage Estimates. Retrieved from HTTP://www.bls.gov/oes/current/oes533041.htm Cascio, W.F. (2013). Managing Human Resources: Productivity, Quality of Life, Profits (9th ed), New York, NY: McGraw-Hill Irwin. Experienced Limo Driver Salary in Austin, TX. (2014, December 6). Retrieved from Indeed: http://www.indeed.com/salary/q-Experienced-Limo-Driver-]-Austin,-TX.html Health Information Privacy. (n.d). Retrieved from http://www.hhs.gov/ocr/privacy/ Occupational Health and Safety Administration. (2006). All About OSHA,OSHA 3302-06N. Washington, DC. US Department of Labor. Shields, J., & Campbell, D.C. (2001). A Study of Non-Subscription to the Texas Workers Compensation System. Retrieved from http://www.iaiabc.org/files/public/Texas Summary of the Major Laws of the Department of Labor. (n.d). Retrieved from http://dol.gov/opa/aboutdol/lawsprog.htm