Compensation and Benefit Strategies Recommendations
HRM 531
September 9, 2013
Compensation and Benefit Strategies Recommendations
To: Bradley Stonefield
From: Atwood and Allen Consulting
Hello Mr. Stonefield,
After lots of planning and consideration we have come up with a pay and benefits package that will meet all of your needs. It will keep your company comparable with other limo services, fit into the limo market in Austin, Texas, will have 25 employees, keep you around negative fifty thousand in net losses for the first year, and show at least a 5% growth rate over the next couple of years.
In order to be able to come up with a pay and benefits package we had to take a look at your estimated expenses. With the information provided, via our second conservation, we were able to estimate your total expenses for the year. The table below shows your estimated expenses, along with the estimated expenses for each type of vehicle you provided to us.
To stay comparable to other limousine companies in the Austin area we had to take a look at Salary.com to see what the average salaries are for the positions given to us during our conservation. The following table shows what the average salaries should be for each position in terms of hourly rates. The table also encompasses the 25 positions you needed for the company.
When researching other limousine services in the Austin area we found that, to fit within the market you need to be able to chuffer between 2 to 10 passengers. Your hourly rate for each vehicle should be between $70 to $115 dollars per hour depending on vehicle size. To make sure adequate profit is made with each rental, there should be a minimum hours one can rent. We set this at 2 hours to stay within market range.
The attached spreadsheet will show the entire compensation and benefits analysis we did. Under the first tab “Landslide Revenue Analysis “ shows all estimated expenses combined with all estimated profits for the...