Many businesses consider compensation the primary reason that people decide to work for a company. Walmart is one of the largest employers that provide compensation packages for their employees, it's beneficial for them to understand the importance of compensation. This paper will discuss the compensation plan that most appropriate for this company. The paper will also cover internal and market consistent compensation systems, while evaluating the current pay structure and recognition of employee contribution. Furthermore, the paper will recommend two ways to improve discretionary benefits while evaluating the employee- sponsored retirement plans and health insurance program provided by the company. Compensation can empower some companies to motivate and satisfy employees while remaining competitive in the market.
Existing compensation plan
Walmart Stores Incorporated is one of the largest retail stores in the world. It is most appropriate for Walmart to have a compensation package for its employees. The company offers jobs for all levels of people, starting at an entry level position that allows an employee to climb the company ladder. WalMart’s positions range from a cashier to a manger, corporate positions and beyond. In addition to the position the average full time wage for its employees is $8.81 hourly, an employee can work full time or part time. The store managers earn between $50,000 and $170,000 a year and the company promotes every year at least 160,000 people (WalMart, 2014).
The company offers benefits ranging from health care plans, 401k plans, educational assistance, and retirement plans and training. Employees at Walmart are given cash bonus opportunities, a chance to move up through the company,...
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...t its promise. However, the company still faces challenges with compensation packages. Walmart employees still raise a complaint in regards to poor compensation packages that have caused economic hardship for some employees. The challenges of keeping the everyday lowest price are consumer benefits, which may have obviously contributed to internal demands.
In these economic times Walmart faces many challenges with staying on top as a low price leader. Competitors have also been challenging the retail discounter. Companies like Target, Dollar General and Dollar stores continue to cut prices to lure families away from Walmart.
Therefore, since Walmart has continued to expand their business, its basic strategy has shaped the retailer's growth. This company just started off with the simple philosophy “Offer people more, saving money, and a better life.
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