Running head: COMPENSATION AND BENEFITS STRATEGY RECOMMENDATIONS

Compensation and Benefits Strategy Recommendations Sabrina Brown, Tamara Kelly, Tierney Kennedy, and Shaina Tyler HRM/531 December 16, 2013 Karin Wagner

COMPENSATION AND BENEFITS STRATEGY RECOMMENDATIONS

Compensation and Benefits Strategy Recommendations Introduction-Shaina Market Evaluation Compensation Structure It is important to follow several steps when creating the compensation structure. The first step is to identify job and describe each position. The company should make sure that job descriptions reflect the essential functions of the position. Once descriptions are establish, each job is evaluated based on worth of the company. To evaluate job positions, the company should rank each job in order of importance. Third, the company should benchmark each job positions for fair pay and ensure competiveness. Some benchmarks resources that can be used is private surveys and market rates. Using the job evaluation and benchmark, the company has an idea of salary ranges. Therefore, these steps ensure that an employee is not getting underpaid or overpaid.

Market Position When re-locating the business, it is important to become aware of competitors. Becoming aware of competition will give firms a perspective on why employees may want to stay or leave the company. Landlines main competitions in Austin, Texas are large competitors. Two limousine company, in particular, are Big as Texas Limousine Service and Austin Black Car Services. These companies offer an attractive compensation and benefits package to employees. Landline need to offer comparable compensation package to keep or attract employees from pursuing careers at other large companies.

COMPENSATION AND BENEFITS STRATEGY RECOMMENDATIONS

Compensation and Benefits Because Bradley Stonefield wants to have comparable compensation for his employees in Austin, Texas, he will need to pay his drivers in accordance to what other limousine companies in the area pay. The comparable wage package will need to be in accordance to the position and credentials that the employee has. Out of his 25 employees, Bradley will need roughly 5-8 drivers with the proper licensing to operate the vehicles. To ensure he has the best drivers he will need more than comparable wage, he will need a benefits package that draws employees to him without costing more than his startup company can afford. To achieve these goals, Bradley will need financial compensation in the form of hourly wages that is in comparison to the other two major limousine services in the area. Bradley will need to set himself apart by offering non-financial compensation. He will need to make his company a fun place for employees to work so they want to come to work for him. Internal equity, external equity, and individual equity will influence the financial compensation (Cascio, 2013). The benefits package will need to be comparable to other companies in the area which should include a medical plan and retirement plan. These are the bare essential packages for employees, but for a startup company they can be its demise. Performance Incentives In addition to the benefits and compensation programs, Bradleys limousine service will need to offer a performance incentive to recognize employees performance. Unlike many companies, the limousine companys performance incentives are more from the customers. The customers give the driver a tip for the services they provide. To improve the services of this company though Bradley has the clients fill out a survey on the driver. These surveys will help Bradly and his dispatcher decide on who has the more desirable clients and routes. The more

COMPENSATION AND BENEFITS STRATEGY RECOMMENDATIONS

desirable clients and routes usually tip better and should go to the driver who has the highest rating with customers. Laws By law, the employers have some benefits and pay programs they are required to provide. Employee benefits and pay programs play an essential part in the lives of workers as well as their families. The assistances you offer can be a crucial factor for a prospective employees result to work at your business. The Fair Labor Standards Act (FLSA) is the major law that is enforced throughout the United States and US Territories. It requires employers to pay covered employees who are not otherwise exempt at least the federal minimum wage and overtime pay of one-and-one-half-times the regular rate of pay (United States Department of Labor, 2013). The law for minimum wage in Texas requires that an employers pay their employees a minimum of $7.25/per hour. Under FLSA, overtime is also a requirement for those not exempt and states that you must pay your employees overtime after they have worked 40 hours in a work week. That would be there full wage plus half of their full wage an hour for any overtime that occur in that 40 hour work period. Another benefit that you are required to provide to your employees is Unemployment Compensation. The Federal Unemployment Compensation Act (FUCA) with state unemployment systems provides for payments of unemployment compensation to workers who have lost their jobs (Texas Administrative Code, 2007).There are three main requirement areas set by the law are as followed: your previous earnings, your job departure, and ongoing accessibility and work quest. You must meet all of the requests to collect assistances.

COMPENSATION AND BENEFITS STRATEGY RECOMMENDATIONS

Conclusion

COMPENSATION AND BENEFITS STRATEGY RECOMMENDATIONS

References Cascio, W. F. (2013). Managing Human Resources: Productivity, Quality of Work Life, Profits (9th ed.) Boston, MA: McGraw-Hill/Irwin. University of Phoenix. (2013). Atwood and Allen Consulting. Retrieved from University of Phoenix, HRM/531 website. United States Department of Labor. (2013). Wages and Hours Worked: Minimum Wage and Overtime Pay. Retrieved from http://www.dol.gov/compliance/guide/minwage.htm Texas Administrative Code. (2007). Retrieved from http://info.sos.state.tx.us/pls/pub/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p _tloc=&p_ploc=&pg=1&p_tac=&ti=40&pt=20&ch=815&rl=20