Benefit and Compensation

Topics: Salary, Wage, Revenue Pages: 8 (1756 words) Published: January 26, 2015

Compensation and Benefits Strategies Recommendations

Compensation and Benefits Strategies Recommendations
Market Evaluation
Clapton Commercial Construction currently conducts business operations in Detroit, Michigan and plans to expand into Arizona. Market evaluation within these two regions will provide a comparison against businesses of similar size within the same industry. This will allow Clapton to better determine a competitive, and relevant total compensation package. One organization of similar size with operations in the Detroit area is PCI One Source Contracting. This company is a commercial contractor with annual revenue between $10-20 million dollars (PCI One Source Contracting, 2013). According to their website, PCI begins part-time general laborers at $10.50 per hour ( They offer medical benefits, vacation pay, and merit increases for full time employees. Management and project leaders are also offered a car allowance, and retirement plans ( Belfor Disaster Restoration is an international commercial construction company with operations in both Michigan and Arizona. Belfor currently creates approximately $20 million in revenue within the Detroit area (Belfor Property Restoration, 2013). They offer pay structures (depending on position) within both markets averaging from minimum wage to $100,000 per year (Belfor Group Salaries, 2014). They offer incentive programs for early completion of projects, bonuses for exceeding sales goals, and merit increases for exceeding performance or promotions. In addition, Belfor offers medical benefits, accrued paid time off, paid sick leave, retirement plans, and car allowance and travel expense reimbursement for applicable employees (Belfor Group Salaries, 2014). According to, the national average wage for commercial contractors (not including additional benefits in a total compensation package) is $65,239 (Salary: Contractor, 2014). In both markets, competitors of similar size are offering wages between minimum and approximately $100,000 per year (dependent on position). Competitors also offer compensation packages with merit increases, health insurance, paid vacations, productivity incentives, retirement plans, and are within the national average compensation of $65,239 for commercial construction contractors. This market survey and evaluation will allow Clapton Commercial Construction to better prepare a competitive and relevant compensation package for employees of the Detroit, Michigan and Arizona operations. Compensation Structure and Position in Market

Since the company wants to be comparable to other construction companies it is easier to determine the pay structure that can be used for the company. This can be achieved by using the practice of benchmarking. This can be done one of two ways. The company can take a direct approach, go around to different companies in Arizona, and see if their human resources department will give them a look at how theirs works. Another way to benchmark would be to use the internet job boards to see what current salaries in the area are going for. The best recommendation would be to grade each job on a points scale to decide difficulty and importance. From there decide which jobs have an average salary and which ones should have a pay scale based on time in service and skill level. From there the company can identify how many positions for each job title the will have and can factor in the projected payroll of the company against the projected gross value. This will allow for growth within the company as well staying competitive with other companies. For the expansion to Arizona, the company will have to look at trying to undercut prices of competitors. The positioning will be weak and should look to specialize in smaller jobs. According to (2014) the top 10 companies billing is from $500 million to $47 million....

References: BELFOR Group Salaries. (2014, January 1). Retrieved November 30, 2014, from
Belfor Property Restoration (2014). Construction Worker Salary in Arizona. Retrieved from
PCI One Source Contracting | Commercial Construction Contractor (2014). Salary Wizard. Retrieved from
Salary: Contractor
United States Department of Labor. (2009, September). Health Benefits, Retirement Standards, and Workers ' Compensation. Retrieved from
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