Compensation Plan

Running head: COMPENSATION PLAN 1
Compensation Plan
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COMPENSATION PLAN 2
Introduction
In recent years, in the face of growing competitive pressures, organizations have been making
the most of every wave of managerial innovation to reach higher levels of performance.
Some have always looked with restrictions on this succession of novelties Hoops, Brasel,
Dewey, Rodgers,Merrill, Hunter & Azarow (2018). However, we are entering a new era
where digital transformations are more complex and disruptive, requiring quick and creative
solutions.
Walmart is a leading player in the retail sector globally. The company can attribute this
success to its ability to retain and attract top talent. This paper will evaluate the
compensation philosophy that guides remuneration and other benefits at Walmart. It will also
look at how the compensation system contributes to motivation and retention of employees in
the company.
Walmart’s compensation system
For a good performance, an employee at Walmart gets an annual raise capped at 60 cents, this
plan applies to workers who work for 200 to 300 hourly. Half of Walmart’s one million
hourly associates make less than $10/ hour. For an employee who has worked over 15 years
at the organization, they get around $19/her which is a hefty amount for a worker who is paid
on hourly. The company’s compensation plan is depended on how long you’ve worked in the
company.

COMPENSATION PLAN 3
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Compensation systems and careers have always been considered strategic factors for
organizational success. However, most companies, even the most innovative ones, still use
traditional pay systems based on jobs and functions.Despite the problems pointed out, the
traditional remuneration still has its place within a mix of strategic remuneration and through
an approach that contemplates the alignment of the individual effort with the organizational
guidelines; orientation to the process and result; favoring participative practices and the
continuous development of the main competencies that connect to careers and their
development process.
There is similarity between Walmarts compensation system with other companies. The
compensation system includes bonuses and salaries, stocks, good working conditions and
other various benefits. The first element of the compensation system is the salary. The
company is one of the best paying as compared to its to the industry standards. The
compensation plan in the company has the second element is providing a good and conducive
working environment thus the employees can fully focus on working Viswanathan, John &
Narasimhan (2018). The company gives its employees free lunch as part of ensuring a
comfortable and conducive working environment.
Within the pay and career logic, the competency system is strongly influenced by the
predominant structure type. If the structure has a high degree of flexibility, with matrix
characteristics and work teams, the compensation system will tend to define specific values
for each competency or set of competencies.