Compensation and Benefits Strategies Recommendation

Compensation and Benefits Strategies Recommendation

Bradley Stonefield is seeking a compensation and benefits package to cater to the basic needs of his business. As per the conversation with Traci Goldman, Manager at Atwood and Allen Consulting, this package should include what others are offering in the Austin market. Considerations should be made that Bradley’s company is forecasted to have 25 employees with projected net annual net revenue of $50,000 for the first year of business, with hopes of making 5% revenue in the years to follow. The compensation package should be comparable and fit within the current market.

Market Evaluation Results

Talk about the existing trends in Austin. You can use the Occupational Employment and Wages site to see current pay rates.

Compensation Structure

According to the competitive nature Landslide Limousine service it is recommended they lean towards a market base pricing and internal equity.  A market-based pricing strategy is also known as a competition-based strategy. In this pricing strategy, the company will evaluate the prices of similar products that are on the market. It is important to only consider those products that are similar to the product being offered. Depending on if the product has more or less features than the competition, the company sets the price higher or lower than the competitor pricing. For example, if this product has an extra feature over the competitor’s product, the company could either decide to price it the same, therefore making it the better value or could price it slightly higher to account for the additional feature. (Smallbusiness.chron.com) Internal equity defined by Cambridge dictionary is as follows: a situation in which employees who do similar jobs within a company receive similar salaries, and the amount they are paid is related in a fair way to the type of job that they do.

Total Compensation and Benefits

In today’s work places compensation is a very powerful tool in keeping and attracting quality employees (Ron Fleisher, Catherine Meek, & Karen Jorgensen, 2014). Compensation includes more than just base pay includes some if not all of the following:

• 401k
• Retirement benefits
• Health insurance and other benefits; like life, dental, medical, accidental death insurance
• Stock
• Rewards
• Vacation
• Opportunity Income (tuition reimbursement) (Ron Fleisher, Catherine Meek, & Karen Jorgensen, 2014).

Once you set what compensation and benefits you will have talk about the frequently make sure they know that it is more than just base pay (Ron Fleisher, Catherine Meek, & Karen Jorgensen, 2014). Compensation will help the employees get the company to the point Mr. Stonefield would like it to be. Rewards for employees that help get the company noticed in the market by bringing in more guest and clients would be a good compensation plan for the company (Ron Fleisher, Catherine Meek, & Karen Jorgensen, 2014). Each employee should be either creating or supporting sales or keeping expenses to a minimum if they are doing neither Mr. Stonefield may want to figure out why they are there is there position needed (Ron Fleisher, Catherine Meek, & Karen Jorgensen, 2014).