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Compare and contrast compensation and benefits strategy of the “people department” of Southwest Airlines to overall strategies of two other airlines. What distinguishes each approach from the others? What are the strengths and weaknesses of each?

Compare and contrast compensation and benefits strategy of the “people department” of Southwest Airlines to overall strategies of two other airlines. What distinguishes each approach from the others? What are the strengths and weaknesses of each?

Guided Response: Be sure to include links to the companies, as well as the course text, among a minimum of five references. Respond to at least two classmates’ posts.

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I need to respond to these two student’s discussion post

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I reviewed the compensation and benefits information for Southwest Airlines, United Airlines and Delta Airlines. For the compensation piece of my research I chose to focus on Flight Attendants to establish a baseline for comparison. I did this because all three airlines utilize them and I believed it would be easier to show the data within a like career path.

Benefits Southwest (Flight Attendant) United Airlines (Flight Attendant) Delta (Flight Attendant)
Salary $25,491 – $121,942 $24,271 – $115,944 $24,705 – $105,098
Medical Y Y Y
Dental Y Y Y
Vision Y Y Y
Retirement/401K Y Y Y
Vacation Y Y Y

The chart above depicts salary range and major benefit package offerings for all three airlines (payscale.com)

The first thing that jumped out to me when comparing the three airlines was the average starting salary, Southwest Airlines starting pay is slightly higher than the other two, which tells me their compensation strategy might be a bit more aggressive than their competitors.

All three employers offer the option of Medical, Dental and Vision care plans. According to their respective company benefits websites there are multiple options to choose from within each plan, to include family coverage.

The financial awards programs for all three are comparable as well, Southwest’s 401k program is more beneficial to the employee than the other two in that they match dollar for dollar up to 8.3 to 9.3 percent of the employee’s salary, United and Delta are below that.

One major area that Southwest distinguishes itself over United and Delta is in their Training and Development program. Southwest has what they call Southwest Airlines University, “it provides technical training and personal and professional development opportunities through classroom and online formats” (southwest.com). Either Delta or United mention this type of program being offered for their employees.

As you would imagine the three airlines offer very similar compensation and benefits packages to their employees with regard to medical, dental, retirement planning, and paid time off but Southwest appears to be a step ahead in what they offer. If I were to find a disadvantage in Southwest it would be that when they began operations they only used one type of aircraft, the Boeing 737. While this strategy helped them with maintenance costs, it probably hurt them with regard to employee knowledge development given they were only familiar with one airframe (Weathington, B. L. & Weathington, J. G. 2016)

https://www.deltajobs.net/travel_and_benefits.htmLinks to an external site.

https://www.glassdoor.com/Benefits/Southwest-Airlines-US-Benefits-EI_IE611.0,18_IL.19,21_IN1.htmLinks to an external site.

https://www.payscale.com/research/US/Job=Flight_Attendant/Hourly_Rate/cbc9177c/Southwest-Airlines-CoLinks to an external site.

https://www.payscale.com/research/US/Job=Flight_Attendant/Hourly_Rate/4bf8a22a/United-Airlines-IncLinks to an external site..

https://www.payscale.com/research/US/Job=Flight_Attendant/Hourly_Rate/8220585c/Delta-Air-Lines-IncLinks to an external site.

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