Compensation and Benefits Strategies
Team B
MGT/521
March 20, 2014
Krista Dickerson
Compensation and Benefits Strategies
Providing a competitive compensation and benefits package is the key to attracting and retaining quality employees. This is especially important to small business owners who have smaller budgets to work with and have to work hard to attract and retain quality employees in a very competitive job market. Small businesses are challenged with creating compensation and benefits that are attractive to employees and allow them to compete with larger companies for the good employees. Benefits are expensive and small businesses must find ways to fund the benefits with less cash flow than the larger companies. Making this a part of the company strategic plan will ensure that the company objectives are met while offering benefits that are needed by the employees. Compensation and benefits packages can include many different options such as health insurance, pension/401k, time-off and of course, a competitive base salary. The value of the compensation and benefits to an employee can both negatively and positively affect moral as well as motivation. (www.inc.com, 2014) While direct pay or base salary make up a larger portion of the total package, that alone does not guarantee a productive, motivated employee. Compensation that is not necessarily monetary, often leads to higher job satisfaction. In today’s job market employees are looking for items in the package that increase their quality of life and are often happy with packages that are flexible so that they can pick and choose what works for them.
While the current minimum wage in Texas is $7.25 per hour according to the United States Department of Labor, (2014), attracting and retaining quality employees at that rate would be difficult. The average salary for Limousine Driver/Chauffer is $30,197.00 in Austin, TX. (www.salary.com, 2014), and to be competitive, salaries...