WestJet's Compensation Management Strategies

This assignment delves into the compensation management practices employed by WestJet Airlines. It examines how WestJet cultivates a positive corporate culture through employee empowerment and engagement, highlighting their unique approach to attracting and retaining talent. The analysis explores various compensation strategies implemented by the airline, including share purchase plans and performance-based incentives, while considering the challenges posed by competition and economic fluctuations.

Running head: COMPENSATION MANAGEMENT OF WESTJET
COMPENSATION MANAGEMENT OF WESTJET
Name of the Student
Name of the University
Authors Note

1COMPENSATION MANAGEMENT OF WESTJET
In the recent years, WestJet Airlines has failed to stay stable due to rise in various factors.
This includes various unforeseen events like terrorist attacks, increase in security costs and
airport expenses that affect the travelling of passengers. The main goal of WestJet Airlines is to
enrich the lives of people all over the world by providing friendly, safe and affordable air travel.
The foundation of the organization corporate culture is having passionate and caring attitude.
Since the beginning, WestJet was established with a vision to establish a friendly workforce by
hiring efficient employees committed to customer services (YouTube., 2018). The company
delivered low ticket prices to its customers through proper operational efficiencies by reducing
maintenance cost.
From the starting, the growth of WestJet Company is depended on the high involvement
of managerial practices. The company gives freedom to its employees to do whatever they can
to develop best flying experiences for their guests. The passengers are generally known as the
employees or “WestJetters” (Westjet.com., 2018). The flight attendants are constantly given
proper training about customer services, their language and culture. WestJet has been rewarded
as the best airline with best corporate culture since several years (Long & Singh, 2018). The
employees are highly participative in the company due to the intrinsic rewards. Employees are
treated as per the company's corporate culture.
Recently, WestJet had started a share purchase plan where the employees are free to
invest up to 20 percent of the earnings in the business shares (Ingram, 2000). The company then
matches this shares with it free shares. The corporate culture may be changing due to the job
pressure in recent times. Moreover, in the ever increasing competition environment, threats from
Air Canada and other airlines is also rising.

2COMPENSATION MANAGEMENT OF WESTJET
According to WestJet CEO Gregg Saretsky, the employees are allowed to make mistake
but not at the cost of company (McCullough, 2018). Change is generally good for the company
but the organization should not be afraid for the required change. The company’s workers should
be lead efficiently and over management should not be made. WestJet culture is all about
empowerment and engagement by adopting a collaborative style. The ownership or employee
platform is very powerful in the company’s corporate culture. By launching WestJet encore, the
organization made huge change in the business model. The core to company’s success was
launching of single aircraft type.
The CEO and the mangers can’t just deliberately avoid the facts relevant for their
businesses. If certain things are ignored business environment, economic condition and general
market are doomed to fail. The management techniques should be more focused and consistent.
Customer services and quality matters the most for WestJet owners. Therefore evolving strengths
in financial resources and technology is required. Moreover, the factors affecting the productivity
of WestJet employees should be ascertained to ensure long-term prosperity of business in
dynamic corporate environment.

3COMPENSATION MANAGEMENT OF WESTJET
References:
YouTube. (2018). WestJet - Who Are We?. YouTube. Retrieved 28 January 2018, from
https://www.youtube.com/watch?v=aIkAWv-K0qo
McCullough, M. (2018). Interview: WestJet CEO Gregg Saretsky on the power of company
culture. Canadian Business - Your Source For Business News. Retrieved 28 January
2018, from http://www.canadianbusiness.com/leadership/gregg-saretsky-westjet-
interview/
Westjet.com. (2018). Culture | WestJet. Westjet.com. Retrieved 28 January 2018, from
https://www.westjet.com/en-ca/about-us/jobs/culture
Ingram, M. (2000). Culture one of the keys to WestJet's success. The Globe and Mail. Retrieved
28 January 2018, from https://www.theglobeandmail.com/report-on-business/culture-
one-of-the-keys-to-westjets-success/article4412516/
Long, R. J., & Singh, P. (2018) Strategic Compensation in Canada (6th ed.). Toronto, Ontario.
Nelson Education (page 32).