Walmart's Compensation Strategy

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Walmart’s compensation strategy is mostly using base pay that follows the market rate. Employees get paid by hours they worked. Pay rates are different and depend on the job position and working department relative to the organizational structure. Walmart uses job evaluation systems to provide internal equity and determine the basis for wage rate. They evaluated the worth of each job in terms of its skills, knowledge, responsibility or duties required and converted into an hourly, daily, weekly, or monthly wage rate. It significantly affects employee productivity and the achievement of organizational goals. Similar to Walmart’s mission statement “We save people money so they can live better.", its human resource management approaches for…show more content…
For instance, the wage for a cashier is now $11.55 which is only slightly higher than the minimum wages of $11.40 in Ontario. This causes high turnover rate as a lot of staffs are working as part time and frequently quite due to the low pay. A recommendation for Walmart is to develop a formal human resource program and fair performance review process to manage employee compensation. When employees perform at a higher level, their pay rate may be justified according to their performance appraisals. Providing faster promotions is another way to keep people motivated and improve their performance. Employees can feel being trusted and excited to move in to the new position. Walmart uses employee recognition as part of their pay-for-performance compensation strategy. Walmart offers many incentives for its workers. Awards are used to recognize productivity gains, special contributions or achievements to the organization. For example, Walmart offers personalized gifts, vacations, theatre or sports tickets or gift cards to reward employee-of-the-month. These nonmonetary awards are very effective because it can make employees feel appreciated for their effort and contribution while underscoring a company value at the same…show more content…
Part of the comprehensive benefits plans cover medical plans, vision plans, dental plans, company-paid life insurance, accidental death and dismemberment insurance, accident insurance and free access to nurse care managers and health care advisors. The associates at Walmart can receive an 10% associate discount on fresh fruit, vegetables and specific merchandises at Walmart stores. They can also receive exclusive discounts on travel, cell phone services, entertainment and other goods and services not available in Walmart stores. These benefits reflect the goal of human resource management is to retain and motivate
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