Landslide Limousines Case Analysis

Compensation and Benefits Strategy Recommendation

Atwood and Allen Consulting are working for client Bradley Stonefield, owner of Landslide Limousines, to put together a compensation and benefits strategies recommendation plan. The plan developed is for the anticipated twenty-five employees based in Austin, Texas that includes a market evaluation on what other companies are providing employees from a total compensation perspective, recommendations for a compensation structure and position in the market, total compensation and benefits strategy, performance incentives and merit pay, and laws related to the benefits and pay program.

Market Evaluation

Market evaluation can be costly and require time and methodology to accomplish; some companies

As a small start-up company the owner of Landslide Limousines will manage the company’s operational functions; however, employees must perform some administrative function. For those positions, the company’s plans must consist of starting the company with expected positions in the same common value and grouped at the same pay grade with management and operation functions. In evaluating market compensation comparisons, a recommendation Landslide Limousines is to maintain a small workforce and offer potential applicants the above market standards in fixed income rates. This will attract applicants above the competition. After allocating a point system and support roles to driver positions the company can minimize and maximize pay rate and award based on experience and performance (Cascio, 2013). This is a systematic approach that will allow the company to streamline performance evaluations and compensation

Considering the needs established by Mr. Stonefield for his new business, Landslide, the recommendation is that the business begins with a traditional job-based compensation model. The compensation strategy will be divided into the jobs of the organization. Each position will receive compensation comparable to the market standard of the job. The median annual wage for chauffeurs was $22,820 (tips included) in May 2012 (Bureau of Labor Statistics, 2014). The lowest ten percent earned less than $17,050 (tips included), and the top ten percent earned more than $37,200 (tips included) (Bureau of Labor Statistics, 2014). Austin Texas limousine chauffeurs average salary is $23,000 (Indeed, 2015). At Landslide, the recommendation will be to have both full and part-time positions available this will allow Landslide to tailor schedules according to the need of clients. Drivers should be of age 25 or older. In addition, Landslide will consider the experience of each driver related to pay, experience that will include prior hospitality experience, strong knowledge of the area (Downtown Austin, frequented sites visitors often visit). As chauffeurs gain experience and during their annual employee assessment eligibility for incremental pay raises may be an option. These raises will have a set ceiling of no more than $35,000 a