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Compensation and Benefit for Landslide-Limousine

In: Business and Management

Submitted By umangmehta
Words 883
Pages 4
Compensation and Benefits Strategies
Anthony Montes, Dima Gammoh, Leah Osmena, Umang Mehta, Zachary Hoferitza
HRM/531
05/08/2014
Dr. Victoria Wintering
University Of Phoenix

MEMORANDUM
To: Traci Goldeman
From: Anthony Montes, Dima Gammoh, Leah Osmena, Umang Mehta, and Zachary Hoferitza
Subject: Compensation and Benefits Strategies for Landslide-Limousines
Date: May 08, 2014
Thanks for forwarding Mr. Stonefield phone message to us. We understand Mr. Stonefield likes our recommendation for pay and benefits strategies. He likes to have pay and benefits comparable to other limousine services in Austin, TX market. He likes to plan for 25 employees. He is also projecting annual revenue for first year in red (-$50,000) but he is expecting revenue to grow at 5% rate over next couple years.

In today market, not just base pay but, complete benefit package is very important to attract new employees and keep them. Managerial attitudes and organization ability to pay have a major impact on wage structure and levels (Cascio, 2013). We have taken following steps in order to come up with our recommendation for compensation and benefits strategies for Landslide-Limousines.
Market Evolution of Austin, TX • Position in the market • Total limousines company in Austin – if lots of company then high employee turnover ratio. • Total limousines drives in Austin – Market Base pay and benefit package. • Why and why not limousines service will do well in Austin Market?

PAY:
To meet the needs of the business we recommend market based pay when selecting a pay structure. This method is best because it allows us to review surveys in the Austin area on what the business should be paying for salaries. Benchmarking will be used when comparing the pay scale to other limousine services. Therefore we are using the relevant labor of Austin, Texas and not Houston which is many hours away. We are lucky enough that Austin does have its own airport which will be helpful in the business in obtaining clients. We also recommend a pay structure be put in place in supporting the business. This allows the business to put the various job titles into different pay grades and ranges. In addition to market based pay, we recommend performance base pay as well for obtaining the company’s goals. So every quarter, there is a chance a bonus type pay will be given to employees if those goals are met. Based on data from the national compensation survey in 2010 for the Austin area, a chauffeur would make a medium of $10.97 an hour (Solis & Hall, 2010). When looking at Salary.com, the average current pay is $14.00 an hour ("Salary.com", 2014). So by offering a rate at the $14.50 amount and by also providing a bonus program, we should be able to obtain quality drivers for the business.

Competency-Base Pay
Performance Incentives and Merit Pay
Law related to Pay – repeat of last week
Benefit Structure
We need to explain each Benefit structure and pick for him and explain why our chosen one is best for him – need to link to market data and base of his projection of revenue
Law related to Benefits -- repeat of last week
Security and Health Benefits
Group Life Insurance
Workers Compensation:
If an employee is injured on the job while being a service to you, this process is handled by workers compensation. Anytime an employee has a work related injury, they’re provided payments for lost wages, medical treatment and rehabilitation to name a few. During the time the employee not working, they cannot lose their job. If they are no longer able to perform the junction, the employee must be offered a position of a similar instance. In the state of Texas, an employee can file workers compensation claim within one year of the injury or from the date the employee had known about the injury. The state also has workers compensation on occupational diseases. This is when a work related injury has damages to the body as the result of repetitive activities the employee did over the period of the job. Workers compensation is handled by the Texas Department of Insurance. Employers are required to notify the worker’s compensation insurance carrier no later than the eighth day after the notice of occupational disease or the employees first day of absence from work due to injury or death. Penalties maybe assessed if not complied or reimbursement of voluntary benefits even if a penalty is not assessed (“DWC Form-001,” 2014). The state of Texas is one of the few states where workers compensation insurance is not mandatory. Obviously if an employee wants to take the business to civil court, then the business is taking a risk by not having insurance.
Disability Insurance
Medical Coverage
Sick Leave
We can write about Obamacare – There are specific law about more 20 but less then 50 employees. We can recommend 6 part time employees and 19 full time). So don’t have to provide.

Conclusion:

Regards,

Anthony Montes, Dima Gammoh, Leah Osmena, Umang Mehta, Zachary Hoferitza

References
Solis, H., & Hall, K. (2010, May). Austin-Round Rock-San Marcos, Tx. National Compensation Survey, September 2010.
Salary.com. (2014). Retrieved from http://swz.salary.com/salarywizard/Chauffeur-Hourly-Salary-Details-Austin-TX.aspx
DWC Form-001. (2014, January 2014). Employer's First Report of Injury or Illness…...

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