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Proposed compensation

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Write an article on proposed compensation and benefits of wal-mart Paper must be at least 2250 words. Please, no plagiarized work! Employees should be allowed to join unions while the security of tenure should be provided to all full-time employees. Proposed compensation and benefits of Wal-Mart Introduction Although Wal-Mart offers its employees with various benefits and compensations like “health plan benefits”, “profit-sharing plans” and “ stock purchase plan”, there are certain challenges facing the organization since compensation procedures have not addressed the numerous employee complains (Wal-Mart Watch, 2007). A recent case happened in Oklahoma in 2007 when employees complained of compensation policies that included “cutting hours” and not hiring the employees in designations where they have proved competent and skilled (Wal-Mart Watch, 2007). The employees also complained that a number of them had been fired without any apparent reason. The above reasons are just some of the challenges which Wal-Mart employees. The employees are currently unsatisfied thus lowering their work productivity in the organization. The management should establish compensation and benefits policies that maximize employee productivity and motivation in the organization (Wall Mart, 2008). According to the current benefits and compensation plan, Wal-Mart claims that the package is competitive relative to other industries and organizations. The benefits package includes health benefits, profit sharing, retirement savings and stock purchase programs. All associates are eligible for health benefit for as little as $ 5 per month to a maximum of $ 8. . Wal-Mart contributes 2 percent of all eligible Associate’s annual salary or wages to the 401 (k) Plan after a one year waiting periods. Wal-Mart also contributes about 2 percent of each eligible Associate’s wages to the profit-sharing plan provided they have worked in the company for at least 12 months. In the stock purchase plan, the company contributes only 15 cents for each dollar of the company stock purchased by the employees through deductions in the payroll up to $ 1,800 of stock purchases in each plan year (Wall Mart, 2008). Wal-Mart compensation and benefits policies are inadequate since the company has engaged in “cutting hours” and employees are not hired in designations where they are talented. The company has also fired numerous employees without any apparent reason and explanation. Employee work motivation and productivity has declined thus leading to poor job performance and total productivity of the organization. Wal-Mart Stores Inc which is the largest private employer in North America has been accused of scaling down the health benefits offered to part-time employees and increasing the premiums deducted from most of the full-time employees’ salaries. Wal-Mart has engaged in cost-cutting measures to offset the slowdown in consumer spending which has affected the company revenues in the last few years (Wal-Mart Watch, 2007). The company has reversed the eligibility of part-time workers by requiring them to cover their children healthcare and reduced the co-payments for prescription drugs. Wal-Mart has denied most of its employees from working full-time thus reducing the health care benefits to the employees. .


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