Limousine driver retention plays a big role in a decrease in unemployment in Austin, Texas. Austin’s unemployment rate of 5.2% for 2013 is below the national average of 7.3% and Texas average of 6.4% (Areavibes, 2013). Retaining drivers for Landslide Limousine’s will be a challenge for the company. It is important for the company to choose the right strategy for applying salaries and targeted benefits. A strategic look at benefits implies the benefits provided to employees will help attain business objectives (Casio, 2013).
Compensation in a Competitive Market
Austin, Texas has many limousine businesses that offer same types of services. Finding experienced and qualified employees may be difficult because of the competition. Landslide Limousines is a startup company with a tight budget for compensation. A federal minimum wage rate in Texas is very low and many startup companies chose to pay a base wage; however, in such competitive business compensation is a key to growing business with the best employees.
Most of the limousine drivers are independent contractors and get paid per job and not per hour. In addition to the base salary drivers also get tips from the customers. According to Bureau of Labor Statistics an average salary of a driver is around $22,820 (2014). In Texas, only a handful of companies have high ratings and are well known, and their drivers can earn up to $37,000. The most experienced drivers who have also been with the company the longest earn high pay and received merit increase based on their performance. The company’s plans must offer salaries competitive with the United States average to remain competitive and attract highly skilled and qualified applicants.
An employee’s happiness and job satisfaction relies on the systematic pay structures within an organization. Landslide Limousines goal to hire 25 new employees will be the motivating force behind the current individual employee’s...