Hrm 531 - Compensation and Benefit Recommendations

Compensation and Benefit Recommendations

NAME

HRM/531

AUGUST 2014

Compensation and Benefit Recommendations

Any business needs a clear-cut compensation and benefit program. By having certain programs and incentives in place, retaining employees will be easier in a difficult, competitive world. Learning Team A has researched recommendations regarding Mr. Stonefield's Limousine business. The recommendations for compensation and benefits for Mr. Stonefield are outlined throughout this document.

Market Evaluation

Austin Texas has a very tight market for hiring qualified limousine drivers. This tight market will make it challenging for a small start-up business to bring in the qualified applicants. There are over 400 competing limousine companies in the Austin area, which can generate a number of human resource concerns. Landslide Limousine can face a number of concerns. Among those concerns are high employee turnovers due to significant amounts of competition and increasing wages for drivers. Austin Texas is also seeing a decrease in the number of unemployed workers in their metro area. “The Austin/San Marcos area has a 4.4% unemployment rate which will make it difficult to find qualified unemployed individuals to fill 25 open spots” (Bureau of Labor Statistics, 2014, p. 1). Landslide Limousine will also notice unemployment rates come with higher wages to stay balanced with competitors within the same business.

Recommended Position in the Market

In an effort to gain market share in Austin, Texas, Landslide Limousine must design a compensation and benefits package that is both competitive with its main competitors and offers incentive those working in the industry to make a move to a new employer. Gaining knowledge of the labor force within the Austin market is directed related to understanding a company’s direct competitors and what their current relationship is with the direct labor poo. Landslide largest competitors, Texas Limousine Service and Austin Black Car Services, currently dominate the Austin market and if Landslide wishes to gain market share, it must be prepared to offer greater incentive without sending itself in to the red. Additionally, if Landslide wishes to maintain potential gains in market share, it must be attracting skilled and knowledgeable employees that will achieve value and grow Landslide’s brand and presence. The design, market appropriateness and value of Landslide’s compensation and benefit package will distinguish them in the Austin, Texas market for better or for worse. Once Landslide establishes a clear understanding of its market, it must structure the package appropriately so that it can be implemented effectively.

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