Compensation and Benefits Strategies Recommendations

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Compensation and Benefits Strategies Recommendations

By | September 2013
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Compensation and Benefits Strategies Recommendation
HRM 531

Compensation and Benefits Strategies Recommendation

Providing a first-rate benefits package for employees can be an important part of the recruitment and retention puzzle, especially for small businesses. Benefits matter. Small businesses like the limo service Bradley Stonefield is establishing has many challenges. Nowadays, companies are running on leaner budgets. There is competition in attracting good employees between companies. The most popular cafeteria plans that may have multiple options for health coverage, vision coverage and other benefits are what many employees desired. Employees have the ability to use a fixed amount allotted to custom-design a package. Small businesses must keep looking in order to be able to offer plans that are competitive with those offered by larger firms. Small companies must look at which benefits are used than the others. For example, if hospitalization is used by very few they should not offer it or just offer it on voluntary basis. This could bring down the cost tremendously. About compensation that the United States Department of Labor, (2013), minimum wage rate in Texas is $7.25 per hour. This is absolute minimum wage. This rate may not be attractive to retain and recruit licensed drivers; however, it is used to clerical or cleaning staff, according to Bureau of Labor and Statistics (2013). National mean of hourly pay rate in limousine industry is $13.30, with annual income of $27,670. Texas data shows the following statistics: $10.88 hourly mean wage and $22,620 annual mean wage, which are approximately 19% lower than national average. The pay rate should be negotiated individually with each driver; however, general policy of how the salary or pay rate should be calculated is between organization and its employees. Once committed, it represents a legal agreement between the parties. For example pay rate could be based on...

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