Hrm 531 Week 3

Hrm 531 Week 3

  • Submitted By: jalvarado4
  • Date Submitted: 12/09/2013 12:57 PM
  • Category: Business
  • Words: 1337
  • Page: 6
  • Views: 3

Compensation and Benefits Strategies

Compensation and Benefits Strategies
The compensation structure recommended for a start up business to be comparable within the limousine industry and within the market this business is aiming for would be a traditional job-based compensation where Mr. Stonefield would identify the important job characteristics and compensable factors such as driving record and history, as well as the ability to receive tips which can be included as part of the base pay. If the company averages the amount of tips and wages within this industry to the base pay – this should equal to the minimum wage set for the state or higher. The compensation should be market based as drivers typically receive a base salary for their time either per hour or an annual salary. Because driving positions often have flexible hours, the team suggests the company provide an hourly rate for front line employees with the ability to work overtime.

Conduct a market evaluation
After conducting a market search on current job openings in the Austin area for limousine drivers compensation the benefits for Mr. Stonefield should offer are limited. Most companies in the current market offer dental and some medical insurance. However this could be a costly venture for Mr. Stonefileds company in the first year it would be advisable to come up with a plan to include medical insurance for the employees to stay competitive in the market. The larger companies offer a 401k plan, but most of these companies work in the executive market. The market search also showed some companies offering vacation days or certain amounts of days off a week (example 3 days a week off) and signing bonuses. In order for Mr. Stonefield to find the employees he would like to become a market leader he should think about these types of benefits as well. To be competitive in the Austin market...

Similar Essays