Hrm 531 Case Study

Compensation and Benefits Strategies Recommendations
HRM/531
January 26, 2015
Janis White
Compensation and Benefits Strategies Recommendations
One of the most important elements that stood out is Ms. Luther’s commercial construction business is expanding from its base of operations in Detroit, Michigan into a new market, Arizona. Clapton Commercial Construction has a ten million dollar annual net revenue along with an expected growth of twenty percent in their workforce with a consistent three percent drop in revenue growth this year. In order to provide Ms. Luther with recommendations for pay and benefits, we will provide a market evaluation of Arizona, recommendations for compensation structure and position in the market, develop a
The mean hourly wage for construction occupations in 2012 was $19.10 per hour. The average hourly wage for first line construction supervisors is $29 and general construction laborers, $13.91, compared to the national average of $14.42 during the same period (Construction Arizona, 2012). During a market evaluation of the commercial construction companies located in Arizona it was found that most companies offer: Safety bonuses, competitive pay rates, 50-70 hours per week, long-term work, completion bonuses, local & travel expenses, paid vacation, major medical and dental insurance coverage. By offering the benefits listed above it will ensure the organization attraction to quality employees with more experience. Also providing rewards for performance encourages the employee to strive for higher production. Benefits offered by a company are not mandatory and should be viewed as an advantage in addition to the wages paid by the employer (Cascio,
Such things as "pay scales, reward programs, benefits packages, company perks, allow a business to compete in the market for best employees in the industry (Lister, n.d.). It will be up to the HRM department to conduct pay salary surveys in areas of business and be competitive in their pay scales. These surveys or scales should be reviewed annually to adjust for any necessary changes. According to the budget information received from Marylee the revenue will stay the same as well as the -3% revenue growth, therefore it is essential for Clapton will have to remain within in the their boundaries to remain in business. Organizations are only as successful as their approach to hiring the right people, setting clear expectations, managing performance and recognizing and rewarding employees for a job well done (Lotich,