Overview of Compensation and Benefits of Southwest Airlines

Overview of Compensation & Benefits
The compensation and benefits strategy of a company determines to a great extent the productivity of employees. As noted by Weathington and Weathington (2020), the significant operating efficiencies of Southwest Airlines require a compensation program that rewards the employees for facilitating success. Southwest Airlines, Delta, and Allegiant Air, all have almost similar compensation and benefits strategies, with differences lying on their specific details. All these three airlines offer profit-sharing, 401 (k) plans, employee development, health and wellness programs, and travel privileges. Of the three airlines, however, Southwest provides on its website more information about its compensation and benefits system. A key strength of Southwest’s strategy compared to the other two is that its health benefits appear extensive as it offers vision coverage, medical coverage, dental coverage, long-term and short-term disability coverage, among others (Southwest Airlines, n.d.). Another strength is that it offers a stock purchase plan where its employees can buy its stock at a 10% discount (Southwest Airlines, n.d.). The strategy of South West Airlines also involves community outreach where it encourages and supports employees’ efforts in giving and volunteering.
Allegiant Air also has a stock purchase plan with its 401 (k) plans being company-matched and characterized by immediate vesting (Allegiant Air, n.d.). Unlike Southwest Airlines, Allegiant Air does not provide specific details of its profit-sharing or stock purchase plan. A weakness of Allegiant’s strategy is the lack of community programs. Delta offers comp...