Essay About Bureau Of Labor Statistics Website And Compensation Structures

Compensation and Benefits Strategy Research
Compensation and Benefits Strategies RecommendationsAugust 18, 2014Many companies today are turning towards pay for performance program to motivate the employees to meet the objectives of the company. The idea seems perfect to bring enormous growth for the organization. Studies have shown time and again that pay represents one of the most-important aspects implicated in maintaining qualified personnel; it is little wonder that there has been a great deal of attention focused on how best to compensate employees for their performance in recent years (Glickman, S. (2011).   Moreover, because employee performance and efficiency are inextricably associated to organizational productivity, these concerns have new significance and importance in the existing financial environment. Along with that companies are also focusing on certain compensation structures including occupation structure and assessment system, salary structure and salary equity. These kinds of structure will direct the company into different competition mode through which they can grab efficient resources and retain the performance for longer duration. However, the merit pay is one of the major criteria through which the organization can identify efficient resources and utilize them for long term strategy (Teece, David J.; Pisano, Gary; Shuen, Amy (1997).Pay and Compensation Market EvaluationEstablishing correct level of pay and compensation for positions within a new business requires research into what is nationally and regionally accepted.  When designing pay and compensation for employment positions within the business, market research is an important step to understanding what levels of pay are needed to acquire and retain quality employees. Conducting market evaluation may be a painstaking exercise.  According to Cascio (2013), “this can often be a complex task because employers must pay attention not only to labor markets but also to product markets” (e.g., level of demand and degree of competition) (Chap.11, pg. 431, par. 6).  However, the time spent understanding how pay and compensation measures across multiple areas such as national, regional, and local averages should help determine fair and competitive wage scales.Market evaluations were conducted using the Bureau of Labor Statistics website to determine national, industry, and region averages for limousine services occupation.  Additionally, occupations related to running a Limousine Service were evaluated to determine pay and compensation averages for the Austin, Texas area.  According to “Bureau Of Labor Statistics” (2014), “Data gathered from the Bureau of Labor and Statistics shows the national hourly pay mean in May 2013 for Limousine Services was $12.12, and annually was $25,200 (Table 1). The national percentile wage estimate mean (50%) for May 2013 was $10.98 and annually $22,840 (Table 2). Using the average of both national hourly wage and percentile of the wage estimates results in an hourly wage of $11.55, and annual wage of $24,020.