Compensation and Benefits

Topics: Incentive, Health insurance, Employee benefit Pages: 7 (1765 words) Published: June 9, 2014

Compensation and Benefits Recommendations

HRM 531

No matter the size of the business, there is a need to evaluate an individual business’ compensations and Benefits. Each business will be unique; rarely will two businesses have the same benefits. These benefits will show employees, and future employees, what it is worth to work for the company. In this recommendation, it will outline various parts of the compensation and identify the pay act that this package will follow. Market Evaluation

Creating attractive compensation package is a difficult task when entering new markets. After reviewing the benefits and compensation for Turner Construction Company, Ames Construction, Inc., and DPR Construction which are located in Arizona, the companies have these benefits in common: Medical, Dental, Retirement/Pension/401K plan. Turner Construction Company does offer more such as vision insurance, health club reimbursement, life insurance, accidental death and dismemberment, short term disability, long term disability, tuition reimbursement program, and professional certifications and licenses (Turner Construction, 2014). The compensation package offered by DPR Construction includes additional benefits like vision insurance, adoption assistance, personal time off, holidays & holiday shutdown, Flexible Spending Accounts, and Critical Illness Insurance. DPR construction has noted that employees must be non-union and full time employees to receive the full benefits package, but part time employees are eligible for medical, dental, and vision coverage (DPR Construction, 2014). The compensation package offered by Ames Construction, Inc. does not include extra benefits that Turner Construction and DPR Construction offer (Ames Construction, Inc., 2014). With the information provided, an attractive compensation and benefit package that is tailored to the area can be created for your employees in Arizona. Recommended compensation structure

As commercial construction organization entering a new market you will need to have a compensation structure that is comparable or higher to others in the area. When entering a new market, it will be essential to offer a structure that attracts experienced employees that will provide creditability to the new market. It will be essential to have these people in place and show your customers that your organization is committed to being their primary choice for new projects. When determining a compensation plan there are steps that should be considered. The first step is to determine what type of pay structure you are going to use. For your business a pay grade system is the best option. This type of system allows for your organization to compensate employees based on their years of experience and knowledge of the field (Martocchio 2011). The next step is determining the market baseline for the positions. In Arizona, a commercial foreman (salary/exempt) earns about $35,000-$92,000 per year, an estimator/project (salary/exempt) manager receives about $32,000 - $98,00 per year, and a general laborer (hourly/nonexempt) receives about $8.71-20.55 per hour ("May 2013 State Occupational Employment And Wage Estimates Arizona", 2014). The next step is to identify pay grades. This will allow an employee with more experience to receive more income. Below are examples of the three positions listed above: Foreman I – 0-5 years’ experience as a foreman for a commercial construction. Foreman II – 6-10 years’ experience.

Foreman III – 10+ years’ experience.
Project Manager I – 0-2 years’ experience, bachelor’s degree, no project management (PMI) certificate. Project Manager II – 3-5 years’ experience, bachelor’s degree in project management, PMI certificate. Project Manager III – 6+ years’ experience, experienced interaction with customers, PMI certificate and a bachelor’s or higher degree in project management. General Laborer I – 0-3 years’ experience, high school diploma or GED and...

References: Ames Construction, Inc. (2014). Benefit Package. Retrieved from
DPR Construction
Turner Construction. (2014). Benefits, Compensation and Rewards. Retrieved from
Heathfield, S
Hislop, R. D. (1993). Developing a safety incentive program. Professional Safety, 38(4), 20. Retrieved from
Cost Estimators. (2014). Retrieved from
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Compensation and Benefits Essay
  • Compensation and Benefits project Essay
  • compensation and benefit Essay
  • Compensation & Benefits Essay
  • Compensation and Benefits Essay
  • Compensation and Benefits Essay
  • Compensation and Benefits Essay
  • Compensation and Benefits Essay

Become a StudyMode Member

Sign Up - It's Free