HRM 531 Week 3 Compensation and Benefits Strategies Recommendations
Compensation and Benefits Strategies Recommendations
In modern business different types of resources are used to accomplish company goals and compete in the marketplace. None of the other resources are as diverse and difficult to control as the human resource. Humans are needy and greedy. They need benefits and desire compensation. This makes it hard to control and maintain a stable workforce. This is why companies offer benefit packages and compensation to employees. Landslide Limousines is no exceptions to compete in the transportation marketplace they must maintain their employees and hold their skill personnel. In this paper, several recommendations benefits and compensation packages shall be made for Landslide.
Results of a Market Evaluation
On account of tight competition, hiring qualified and experienced limousine drivers in Austin, Texas for a small start-up business is challenging. Austin has a large number of competing limousine businesses operating in or near the Austin area. 441 competing companies in Austin create a number of issues when it deals with human resources. Among the problems one could expect in this market is high employee turnover because to low wages. Another factor to consider is the tightening of the US job market in current years. The number of qualified applicants is decreasing as the US economy improves and employment in US job market pick-up. The Bureau of Labor Statistics published the newly released, November 8, 2013, Government figures from the Bureau of Labor Statistics. It shows that total nonfarm payroll employment rose by 204,000 in October, 2013. “Employment increased in leisure and hospitality, retail trade, professional and technical services, manufacturing, and health care,” (Bureau of Labor Statistics, 2013). As this trend continue into the months ahead it is expected that wages and benefits will rise as companies compete for fewer and fewer available, qualified applicants.
Recommends a compensation structure
Recommend the following compensation structure for Landslide Limousine with considerations given to a tightening labor market. The recommended pay structure is the traditional job-based compensation model, which include the following pay-system mechanics:a written and up-to-date job description for each position that the company has. This is an important tool in the design a pay system, it identifies important characteristics for each position so that each characteristic can be, defined, andweight with compensable factors (Cascio, 2013).
Job evaluation is a process to evaluate and rank jobs in terms of their overall importance to the organization and create a job hierarchy. It also supports the organization structure and pay differences between jobs, ranging from managers at the top to junior, entry-level employees at the bottom. Position of hierarchy is determinedby the weight factor (awarded points) (Cascio, 2013). External survey to identify pay rates in relevant labor markets. Relevant labor market would include direct competitors operating in the same or similar business environment and location(Cascio, 2013). Total the point awarded each position during the job evaluation process, and use point totals to establish pay grades relevant to job positions in the hierarchy. Assign a dollar value to each job position in the hierarchy. For examples of pay structure we have included a table for you to view.
|Min Rate of Pay||Max Rate of Pay||Position|
|1||30 – 50||40||$7.50||$9.50||Entry