Compensation benefits and strategies
One of the most important considerations for a business or a company is the motivating factor for the decision making process. The assertion implies that, all through the business’s lifetime, there are goals and missions that need to be in completion in order to achieve desired success. It is for this reason key strategic decisions come in handy for the limousine business that seeks to be profitable at the end of the day. The first step is to select a viable position or location for the business in order. The selection is a rigorous process since in most parts of the country; there are several existing and thriving businesses of a similar nature. According to Porter’s five-force theory on the perspective of a rising business, it is important to consider the external factors and forces such as market and competition. Austin-Bergstrom International Airport provides a unique opportunity for the location of such a business. By the virtue of the ranking worldwide of the UK business and executive travels, it is understood that the best possible location for the business is at this point.
Compensation is one aspect of employee and management motivation that stands out as a unique link between the successful completions of goals and the average revenue accrued by the organization. The strategy to have in mind during this process entails the use of long-term performance compensation plan. The reason for this is the fact that this strategy and plan not only has the ability to effect long term benefits on the business, but also bears the methodology and theory which can be easily tenable. It also allows the business to begin with the available capital with the promise of advancements and progress in terms of asset increase and development as well as workforce efficiency.
For instance, the average hourly pay for a driver or chauffeur with a lot of experience in the work is approximately $10.85 in Texas and the national mean wage is about $12.12. This means that the average annual amount to be used for compensation purposes ranges between $22,570 to 25,200. The fact that the first year revenue expectation is roughly $50,000 means that there is need to employ twenty-five employees of good experience and conduct in order to minimize risk and maximize the prospects of the business.
Planning on an annual basis involves long-term performance compensation plan that will demand a managerial position. For the plan to work, it is important to form a framework that the performance of the worker, the management and the outcome of revenue are strongly tied and linked. The plan enables and compels the manager’s decision-making processes to bear in mind the importance of the success of the day-to-day running of the business and, consequently, the compensation at the end of the day. Annual appraisal of performance based on individual worker output and results of short-term analysis is an activity that contributes to merit-based compensation among the employees.
Constant communication on the state of the work as pertains to revenue collection, services and other types of costs plays an important role in the accounts and performance evaluation. Therefore, the best strategy for this is to engage in an annual analysis as a way of establishing if the link between performance, revenue and management effort is as strong as intended by the stakeholders. If it is, the following illustration should be an indicator of a graph of revenue in accordance to the average 5% annual growth.