Compensation And Benefits Strategies Recommendations

Topics: Employment compensation, Performance-related pay, Incentive Pages: 8 (1972 words) Published: April 5, 2015


Compensation and Benefits Strategies Recommendations
Bethany Rutschilling, Alisa Brady, Michael D Silva, Everett Pownall, Melissa Britter MGT/521
3/30/2015
Michael Osby
Compensation and Benefits Strategies Recommendations
This paper will cover the compensation and benefit recommendations we have outlined for Clapton Commercial Construction, this will address the needs for a compensation structure, the company’s position in the market, a compensation and benefits strategy, the use of performance incentives and merit pay to recognize and engage employees, and to identify the laws related to the benefits and pay program. Clapton Commercial Construction strategic plan is to provide to the employee a total compensation package. The organization’s goal is to attract employees with their compensation structure and base pay. Clapton wants to be comparable to other commercial construction business located in Arizona. Kitchell is the number one commercial construction company in Arizona. (Republic, 2014) Kitchell is 100% owned by its employees which contribute to the loyalty and low turnover rate. (Kitchell, 2015) Kitchell has a substantial compensation package consisting of a supplemental life insurance options, tuition assistance, vision insurance, 401k, adoption assistance, ten paid holidays, health insurance, profit sharing, employee assistance program, paid time off plans and employee wellness programs. (Kitchell, 2015) Just like its competitor McCarthy Building Company who is rated second in Arizona. (Republic, 2014) McCarthy is 100% percent employee owned with a similar employee compensation package. (McCarthy Building Companies, 2015) To be comparable with other construction companies in Arizona, Clapton should not differ much from the competition. Clapton Commercial Construction is planning to expand their business to Arizona and add 130 employees. With their annual net revenue of $10,000,000 and an expected -3% revenue growth, Clapton Commercial Construction first needs to set a payroll budget that is less than this amount. They then need to compare the positions with those in competitor businesses and determine the base pay for each position. I feel the most successful route will be using the internal equity method to create salary ranges for the different positions or grades within the company (Ojimba, 2004). “A company should also give each grade a spread, so that people can move within their grade as they progress in their jobs” (Ojimba, 2004, Use internal equity method to create salary ranges by pay grade). I recommend the company also assures each pay grade has a significant difference in salary, so with a promotion the employee is compensated for their higher position. It is important to have decided the compensation plan and the boundaries on the salary when hiring your employees so you can be honest with them from the beginning about salary. The employees will be compensated on the position they hold which should be based on their education and experience.

Clapton Commercial Construction is expanding its business to Arizona which is a much different atmosphere than their current location in Detroit, Michigan. Arizona is a popular state for retirement and vacationing. It would be beneficial for the business operators to market to clients looking to build condominiums or vacation homes. Offering construction plans that would benefit the people who enjoy warmer locals and those looking to build vacation homes would put the company in a great position for building business in Arizona. The total compensation and benefits strategy will have the advantages of attracting the right employees for the company that will stay for a while, and that way there is not a high turnover rate of employees. The compensations and benefits will entail a variety of benefits, which is including pay, company benefits, and rewards for the employees and their families. These will allow the company to have good...


References: Arizona, I. C. (2015, March 29). Workers ' Compensation Insurance. Retrieved from Employer 's Frequently Asked Questions: http://www.ica.state.az.us/Claims/Forms/Claims_FAQs_WorkersCompensation.pdf
Kitchell
McCarthy Building Companies, I. (2015, March 29). McCarthy Building Companies, Inc. Retrieved from mccarthy.com: www.mccarthy.com/careers/careers-at-mccarthy/total-rewards/
Republic, T
Senate, A. S. (2015, March 29). Labor Employment Laws. Retrieved from Arizona State Senate: www.azleg.gov/briefs/Senate/LABOR%20EMPLOYMENT%20LAW.pdf
Stanton, C
Ojimba, E. (2004, November 15). Salary Basics - Pay Structures. Salary.com for Business. Retrieved from
http://www.salary.com/Small-Business-Advice/advice.asp?part=par409
Cascio, W. F. (2013). Managing Human Resources: Productivity, Quality of Work Life, Profits
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Thompson, S. (2015). What is the Difference Between Merit Pay Incentives and Pay For
Performance? Demand Media
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