Compensation and Benefits Strategy Essay

Words: 1021
Pages: 5

Compensation and Benefits Strategy
Landslide Limousine (LL), a small business in Austin, Texas, hired Atwood and Allen Consulting (AAC) to conduct a market evaluation and provide recommendations for the following: a position in the market, a compensation structure, a total compensation and benefits strategy, and performance incentives and merit-based pay to recognize and engage employees. This will help to identify applicable laws related to pay and benefits. This paper includes citations from one peer-reviewed book, three government websites, four commercial websites, and one University of Phoenix online course material. Market Evaluation
Atwood and Allen’s market evaluation found the average salary for a limousine driver in Austin,
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Less than one-third of limousine companies currently offer health insurance to their employees and pay part of the premium (Limousine, Charter, & Tour, 2012). LL should provide health insurance to employees as part of a managed care plan and pay part of the premium. The company should join the National Limousine Association (NLA), which will provide employees discounts on phone service, prescription drugs, and other services. LL should provide a 401K Plan with matching contribution up to 2.5% of an employee’s gross salary. The company should vest the 401K for five years as an incentive to reduce turnover (Mayhew, 2013). The company should provide employees two weeks of paid vacation, 10 days of sick leave, pay time and a half on recognized federal holidays, and build in a 15% gratuity on charted limousines.
Performance Incentives and Merit Pay The company should value client feedback and make it the cornerstone of the organizational reward structure. The company’s organizational reward structure should incorporate financial and nonfinancial rewards (Cascio, 2013, p. 423). LL should provide customers with a comment card that rates driver services in 10 areas, including the cleanliness of the vehicle, how the customer chose the company, and will the customer recommend the