In the competitive industry of luxury transportation, investors enter and exit the industry due to various reasons such as crowded and competitive market, underperforming employees and lack of experienced employees. Holding on qualified employees is quite a task and the management must ensure they are treated well to stay; employees working for a profitable company have a greater chance of earning higher than the workers earn in a less profitable business. Workers in a construction company receive a full wage for a prescribed output. Workers in service jobs such as clerks have incentives programs based on organizational wide, department based and individual measurement. In this paper, several recommendations shall be made for a small limousine company (Adler & Ghiselli, 2015)
Recommend a compensation structure
According to Adler & Ghiselli (2015). The best recommendation pay structure is using job-based compensation model, which requires the employees to fill and update the job description of their position in the company. Job description helps determine how demanding the job is, how the particular job relates to the others and the standing out factor for each task. A job description defines the real weight in compensable aspects. Job evaluation is the systematic determination of the value or worth of a job about the other jobs in the same organization. The primary objective of job evaluation is to have external and internal consistency in wage structure in the company; it aims to fix a floor and a ceiling of salaries throughout the organization. Job evaluation ensures that same wages paid to all qualified employees in the same job grade. It aims to reduce the recruitment costs.
Job evaluation aims at introducing objectiveness and simplifies union negotiation on wages and solving wage controversies, which might lead to protest, and go-slows. An external survey is crucial as it identify how the relevant labor market pays rates due to direct competitors operating same business in the same locality (McGraw, 2015).
Recommend the position in the market
In every market, there must be competition, and knowing your main competitors gives a view of who might poach your employees. Small Limousine Company has some large competitor in the area and to keep up with the competition; it must offer comparable benefits package so as to keep its best employees from joining the rival businesses and also lose those that it had invested time and training in them. Small Limousine Company will have the least percentage of the marketplace and cannot compete with the other bigger competitors regarding offering comparable benefits and packages (McGraw, 2015).
Total compensation and benefit strategy
The compensation strategy involves three key components and is base pay, experience, and skill level and customer satisfaction. In many organizations, the base pay is determined by the government rules and regulations and should be evaluated accurately with due consideration both internally and externally. Besides, for fair employee compensation, it is essential to include overtime and other related wages. Such benefits add to the base pay, which employees rely on and are considered as attractive to retain and attract new employees. The compensation strategy should divide the jobs of the company and each position to receive compensation comparable to labor standards. The second component is experience and skill level, as the staff gain experience and maintain a good degree of performance are entitled to a substantial pay raise. The raise should have a limit to keep the whole system in check. (McGraw, 2015).
Customer satisfaction is a crucial part of growing the business retaining and attracting new customers. Rewards and performance bonuses are a must to encourage high performance. The reward system should set attainable targets, as this would encourage employees to work hard to attain it compared to when the target is too high and unattainable. As small limousine company grow, it would be necessary to put in place a benefits plan to retain and attract employees. (Biller & McEvoy, 2012).
The use of performance incentives and merit pay
When small limousine company applies performance incentives and benefits package it will achieve different benefit as part of the results; one is the loyalty and motivation, which translate to business growth and more customers. The next one is inspired the new employee to join in and offer fresh ideas as they believe the company cares for them and their profession. Some package should suit teamwork, as it would encourage employees to be brothers keep and foster togetherness. Merit pay rewards employees based on individual performance, it links pay to performance in line with the business growth. Merit pay should reward the best individual in different fields and should show the performance growth and in a case of a slump, it would be noted. If small limousine company management offers these options, it will attract, retain, and motivate performance. (Bullet & McEvoy, 2012).
Laws related to benefits and pay programs
Reference
Adler, H., & Ghiselli, R. (2015). The Importance of Compensation and Benefits on University Students’ Perceptions of Organizations as Potential Employers. Journal Of Management And Strategy, 6(1). http://dx.doi.org/10.5430/jms.v6n1p1
Buller, P., & McEvoy, G. (2012). Strategy, human resource management and performance: Sharpening line of sight. Human Resource Management Review, 22(1), 43-56. http://dx.doi.org/10.1016/j.hrmr.2011.11.002
McGraw, P. (2015). Changing patterns of compensation and benefits in multinational and Australian companies 1996-2009. Asia Pacific Journal Of Human Resources, 53(1), 59-82. http://dx.doi.org/10.1111/1744-7941.12040
