Walmart Compensation Case Study

1182 Words 5 Pages
Today humans are considered as one of every company’s most important assets, so they efforts need to be efficiently and effectively rewarded. Compensation is a main factor for organization to attract, retain and motivate its workforce. Individuals look for jobs that not only suit their abilities and talents, but compensate them accordingly in terms of salaries and other benefits. "The term employee benefits refer to compensation other than an hourly wage or salary. Examples of specific employee benefits include paid vacation, medical insurance coverage, and tuition reimbursement, but the number of employee benefits can be staggering” (Martocchio, 2014). The compensation strategy is an extremely important piece of the overall running inside …show more content…
Ignoring to compensate and reward employees for their service demoralize and generates turnover among employees which translates to decreasing in productivity. This week’s case study discusses this problem and shows how Walmart compensation system can be aligned to the organization culture and practices. “In 2013 Walmart brought in revenues of $469 billion in 2013 and generated profit of $27.8 billion over the same period. Despite this, the average Wal-Mart salary for its lowest-paid workers for a 40-hour week is about $18,720, which would be the figure for a five-day week if the employee worked 52 weeks a year and didn’t pay any tax” (Harres, 2013). There is a clear unbalance between Walmart’s pay policy and their enormous revenues. The organization is not treating their employees fairly, which means rewarding their contribution properly and …show more content…
Compensation issues can be alleviated by providing better training, promotions preparing employees to escalate in their positions towards helping them to earn higher salaries. To achieve this, organizations must have leaders that are honest, trustworthy, considerate, and possess a sense of responsibility to its employees and overall organization. Walmart’s leadership is showing lack of social justice when it comes to compensate their employees. The organization main interest is profiting while their employees are living under the poverty line due to the low wages they receive. Walmart’s has to step it up and implements positive changes in the way employees are paid for their service. Every successful organization must have an effective compensation system in place, which will motivate employees to have a strong goal to work

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