Compensation Strategy of Walmart

Business law

Table of Contents
Introduction of Walmart..............................................................................................................3
Compensation strategy.................................................................................................................3
Compensation challenges............................................................................................................4
Positive and negative impact of compensation to the company and stakeholders......................5
Impact of the laws, regulations, and market factors on the compensation practice of company 7
Effectiveness of traditional bases for pay....................................................................................7

Introduction of Walmart
Walmart Company was initiated by the Sam Walton in the year 1962, incorporated in 1969. It is
based on United States of America. Further it has expanded its operations across the world and
owns a series of grocery stores, supermarket stores, and discount department stores. It is one of
the largest retail store of the world and the economy of the United States significantly impacted
by the company. Further, the company possesses major human resources; around 2.2 million
workers are working in the company.
Compensation strategy of Walmart
Compensation strategy of the company is related with management of the pay and benefit of
employee. The strategy clearly defines the approach of the company connected with managing
employee compensation (Wang, Qiu, Gao, & Wang, 2017). The compensation strategy of the
Walmart is constructed on internal equity compensation approach. In this approach, the company
offers the compensation to employee on the basis of relative value to their working within
company. Instead, in case of market based compensation approach, the compensation to
employees is based on market pay data. In this case, the company utilizes the information of
market data and then determines the employee compensation. Walmart Company offers an
impartial compensation to its workers on the basis of their performance and effectiveness of
working. There are several elements, which are considered by the Walmart, for determining the
compensation planning, consisting of knowledge of employee, effectiveness, working
environment, and many other connected factors, which impact on the performance of company
(Greene, 2018). Along with this, company also emphasis on the internal equity based
compensation to offer fair compensation to employee, management, and officers. This approach
motivates the employee to carry out their task in the best manner and assist the company to cope