DeVry University
Nicole Runyon
HRM 430: Compensation and Benefits
Course Project
May 18, 2014

Red Lobster is having issues with keeping salaried managers within its organization. Seeing it first hand, as being a manager for one year there is proof of why Red Lobster has issues keeping salaried managers in their organization. Taking a strong look at their benefits and compensation package is a great place to start.
There are many problems in the compensation and benefits area when working for a company such as Red Lobster. The main problem with working in a restaurant as anyone who ever has can relate to, is the demand. When he or she is a manager, it is very demanding and demands so much personal time. They are basically working fifty to fifty five hours but are being paid on a rate of forty to forty five hours. When anyone is a salaried paid manager they are paid a rate for the total year and the amount of paychecks is exactly the same, because the rate of pay is based on forty hours, no more no less. When a person is a salaried manager, they are not eligible for overtime. That being said in itself, one can imagine how hard it is to find long-term reliable manager, who wake up everyday and cannot wait to go into work that day. They are away from their families for so much more time than they are getting paid, the workload is outrageous and the pressure is constantly through the roof. Besides not being compensated 100% correctly, another problem with this organization is there are no benefits. A lot of other restaurants offer their managers bonuses once a quarter, and red lobster simply does not. Red Lobster expects a lot out of their managers, but when good things happen they are not rewarded properly. There is no employee incentive, bonus, or increase in pay. After six and twelve months, the store General Manager writes a review for the manager, and unless the manager get a five they do not receive an increase in pay. Some people will argue that this system is rigged, and it may be just that. Knowing that the only way to receive an increase in pay is to get a five out of five on your review, suggests that the company expects the manager to be perfect and wont accept mistakes or less than perfect.
Chipotle has a good reputation as being one the “Top 100