Compensation Philosophy

The piteous term lending industry has been one of great scrutiny for umpteen years. It has been wellhead kn give the controversy of whether these businesses hurt or help the mediate class. But what no one ever talks about atomic number 18 the employees that work in this industry. When these businesses atomic number 18 shut down state to state, it is non just the borrowers that atomic number 18 affected and left with no way to dedicate their bills, but also the lives and financial security of employees that are lost as well. Current Compensation Philosophy Advance the States is a attraction in the payday loan and short term lending industry.Lets look at the payment philosophy for different levels of employment, non p totallyiate hourly, non exempt salary and officers and executives. Nonexempt hourly employees are nonunion and are paid above securities industry, nonexempt salaried employees are paid at market and officers and executives are paid above market. At Advance th e States, all employees that are center level managers and lower are hourly employees. The Average lease for center managers is between $10. 08 and $20. 73 per hour (www. payscale. com). The average wage for guest service representatives is between $7. 83 and $13. 91 per hour (www. ayscale. com). Advance America is not known for hiring part time employees due to scheduling.Advance America requires center level employees to be available from 8am-8pm everyday and provide their own reliable transportation (www. advanceamerica. net). The hourly employees have a variety of benefits, health, dental, vision, 401k, paid time off, The next level of employment is the divisional and regional directors of operations. These employees are salaried and receive an average salary of $49,000 to $60,000 for Divisional Director and $118,000 to $126,000 for regional Director (glassdoor. om). The executives, like many organizations, see the biggest increase in wage, CEO, washbasin Patrick OShaughness y for 2011, received a total compensation package of $2,992,791, $1,080,673 of which as core and premium compensation (www. businessweek. com). Mr. OShaughnessy also received derivation options, legally required benefits and discretionary benefits. At the core of our compensation philosophy, our programs were designed to attract, motivate, reward, and retain way talent in order to achieve change magnitude stockholder value within a highly hawkish industry.Our compensation philosophy was also focused on aligning the financial interests of management with our stockholders (Advance America, SEC, 2012). Ways to Enhance Current Philosophy (Key Factors- Internal and External committee and strategic focus, financial and cultural resources) The Primary principle of a well defined compensation philosophy is the objective of compensation externalises that enhance stockholder value (Hodak, 2011). The specific goals that satisfy this basic objective are fundamentally the same for every c ompany (Hodak, 2011) 1. ) To attract and retain the talent postulate by the company to create value (Hodak, 2011) 2. To reward, and thereby motivate, that talent for sustainable value creation and (Hodak, 2011) 3. ) To meet the companys attraction and junction objectives at the lowest reasonable cost to the shareholders (Hodak, 2011). Advance America potty meet these goals through conducting a strategic analysis and compensation canvass (Martocchio, 2011). External key factors include industry profile, information about competitors, and long-run growth prospects (Martocchio, 2011). Internal key factors include financial condition and operational capabilities through marketing and human resources (Martocchio, 2011).All core compensation plans and bonus compensation plans are exertion found (Advance America, SEC, 2012). Compensation at all levels within Advance America is unspiritual primarily on a qualitative assessment of performance and long term variables, such as title and associated responsibilities, tenure with us, compliance with our Code of Business Conduct and Ethics, maintaining regulative compliance objectives, maintaining and upholding our commitment to responsible industry practices and customer satisfaction, and managements assessment of market levels of ompensation. Our incentive programs had maximum incentive opportunities that were consistent with competitive market practices (Advance America, SEC, 2012). Conclusion Advance America operates on a performance based commission and bonus plan structure. Advance America does not sell customer write ups or customer information to 3rd parties unless the account is severly overdue, because of this, the majority of originated customer advances result in a performance based compensation.More specifically for the center level hourly employees, their performance based compensation is tied to the center volume for which to operate, this compensation results in their base pay and multiple bonus o pportunities. This performance based compensation plan allows Advance America to attract, motivate, reward, and maintain valuable employees.