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Compensation and Benefit Strategies

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Compensation and Benefit Strategies
HRM/531

Compensation and Benefit Strategies

In the development of a compensation and benefit strategy for Clapton Commercial Construction, the Atwood and Allen Consulting firm will research multiple factors, and provide a comprehensive recommendation proposal to the firm. The proposal includes the development of clear job descriptions and employee performance plans, a local market evaluation, market position, performance incentives, and laws pertaining to Arizona compensation, as the construction company is expanding the operation in the near future. The Clapton Company requests the recommendations allow the company to remain comparable to other Arizona construction firms and meet the parameters of their annual net revenue of $10,000,000. The primary goal of the package is to provide a fair yet competitive pay structure to employees while maintaining the financial standing of the firm.
Market Evaluation With more than 35 billion dollars in post-bid commercial construction projects currently underway in Arizona, the construction market is likely to continue to remain quite competitive (Reed Construction Data, 2013). “Nationwide, the construction industry stood at 5.83 million workers in October, up 3.3 percent year-over-year. That also was up by 11,000 from September, marking the fifth consecutive month of job gains, making the industry competitive at best” (Hansen, 2013, p. 1). Although the market is robust in the state, Arizona offers one of the lowest costs of business operation in the nation. The low operating costs, related to low taxes and a small state government, make the expansion into Arizona a smart business decision.
In a review of comparable construction companies in Arizona, the mean hourly wage for construction occupations in 2012 was $19.10 per hour. The average hourly wage for first line construction supervisors is $29 and general construction laborers, $13.91, compared to the national average of $14.42 during the same period (Construction Arizona, 2012).
Along with a comparison of wages, benefit plans are equally important. In an assessment of three of the state’s largest commercial construction companies, the findings reveal many impressive benefit options. Two of the foremost construction employers in the state offer employee’s generous compensation plans that include retirement, health care, and added perks, including wellness incentives and education reimbursement. “The Sundt Company, one of the state’s largest construction employers, has maintained a self-insured employee welfare benefit plan to provide medical benefits to its employee-owners; one plan option is offered at no monthly premium cost for employees and their dependents. It offers a great Preferred Provider Organization (PPO) network, which allows for additional cost savings on medical claims, vision coverage, and prescription coverage” (Sundt Construction, 2013, p. 1). The Sundt company also offers an employee stock ownership plan (ESOP) to employees after 1,000 hours of credited service during their first year of employment. In additional comparisons of Arizona construction firms across the state, it is apparent the development of a competitive benefit package and a similar wage structure is necessary for Clapton Construction to be a formidable contender in the commercial construction arena in Arizona.

References
Construction Arizona. (2012). Occupational Employment Statistics (OES). Retrieved from http://www.workforce.az.gov/wage-data.aspx
Hansen, K. (2013). Construction jobs rises to highest level in four years. Retrieved from http://www.bizjournals.com/phoenix/news/2013/11/08/construction-jobs-rises-to-highest.html
Hansen, K. (n.d.). . Retrieved , from
Reed Construction Data. (2013). Arizona Construction Information. Retrieved from http://www.reedconstructiondata.com/regions/arizona/
Sundt Construction. (2013). Benefits. Retrieved from http://www.sundt.com/careers/working-at-sundt/benefits/

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