Essay on Compensation And Benefits Strategies Recommendations

Words: 1351
Pages: 6

Benefits and Compensation Strategies Recommendations
TEAM B: Ben F. Soares, Thomas Manning, Zoua Yang, Ziad Shamma
HRM 531 David John Stocker
Benefits and Compensation Strategies Recommendations

Market Evaluation:
When constructing a benefits and compensation strategy, it is important to understand what companies in comparable markets are providing to their employees. For our company, Clayton Commercial Construction, who wants to open up operations in Arizona, it means looking at what other construction companies in and around the state of Arizona are providing as compensation and benefits. Clayton currently employees 650 people in the state of Michigan and is looking to add 130 people (20% increase in headcount)
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Total Compensation and Benefits Strategy:
It is important for Clayton to offer a competitive compensation and benefits strategy comparable to other companies in its industry. Taking into consideration an expected net income of $10,000,000 and a growth rate of 3% for the first year, Clayton Construction must structure their compensation and benefits to fit within its budget and properly manage its salary and benefits expense. To help manage these expenses, we advise that Clayton Construction take a conservative approach when constructing their compensation and benefits package. As the company grows, it can then add more benefits and incentives, as well as increased salaries. Clayton should offer salaries within the averages listed in the graph above, which would help employee recruiting and retention. Paid time off should include a mix of sick/PTO leave that would allow employees to take PTO and sick days from an accrued balance, in addition to the standard holiday pay.
On the benefits front, Clayton needs to insure that its employees are healthy. Employing healthy employees will cut down on sick pay leave and lost profits due to worker time off due to illness. Clayton should offer a basic benefits package that should include healthcare, vision, dental coverage, life insurance and disability coverage with the employee paying part of