Compensation Plan Outline Essay Example | Topics and Well Written Essays - 1250 words

Compensation Plan Outline - Essay ExampleHence, companies try to adopt different requital broadcasts as per prevailing industry standards, work environment and employee expectations. Wal-Mart Stores Inc., under the brand name Wal-Mart is an American multinational retail corporation. Being one of the largest retailers in the world, it runs chains of departmental stores and discount stores with large discounts. It can be declared as the worlds biggest private employer with 2.2 million associates worldwide. Hence, they ought to have a well planned compensation plan so as to motivate each associate to give their best. The competitive compensation package of Wal-Mart touched $5.2 billion last year in the United States. The employee wages are classified and structured depending on experience, skill set, problem-solving abilities and job accountability. Every associate is qualified to receive a performance bonus, based on the performance of their stores. A full - time employee is eligible to receive bonuses up to $1,800 at Wal-Mart per year. Also, the beau monde is known to reward hourly associates and associate managers who have completed 20 years of service in the company, thus motivating employees to give their long term service to the company. It is vital for a company to develop a broad minded outlook while making compensation plans for its employees. It is essential to consider health benefits and various saving plans for the associates apart from their continual weekly / monthly wages. These health benefits include the spouse and all children of the associates, hence taking care of the employee and his family. They also provide varied coverage, ranging from $5 per month to $8 per month depending on the region of work. Wal-Mart provides various Profit share plans and Stock purchase plans to help their employees earn money in a faster flair (Wages and Benefits, 2007). However, Wal-Marts compensation strategy has been widely debated and severely criticized f or its dispirited workers compensation, which is believed to be influential in its ability to sustain its low prices. There is no doubt that the low product prices greatly benefit Wal-Marts consumers, especially from lower to middle class families. Wal-Marts strategy has been discovered to focus on opening stores in lower income areas. This indicates the companys intention to minimize on worker compensation, along with other factors such as retail and merchandizing. The opening of Wal-Mart stores in a new locality is seen to lower the general wages on an average by 0.5 0.8% per worker in the merchandizing welkin and by 0.8 0.9% for grocery workers (Bernstein, Bivens and Dube, 2006). The compensation plan has been slammed for charges that female employees are paid less than their male counterparts despite their achievement of greater performance ratings. The compensation plan at Wal-Mart is structured in such a way that hourly jobs are paid less while management positions are pa id better. The move of promotion is defined in such a manner that an employee must complete a Management Training Program in order to be appraised to the position of an Assistant Manager. It has been noticed that the other big retailers are found to pay more wages compared to that of Wal-Mart. There have been reports of employee grievances that show wage increments of as low as 20