Workforce Compensation Management Strategies at 3M Canada

This report analyzes the compensation management strategies employed at 3M Canada, highlighting the need for improvements in the workforce. The report examines current practices, such as paid absences, minimum wage, and wage adjustments, and suggests areas for enhancement. It emphasizes the importance of aligning compensation with both employee needs and legal requirements, such as Bill 148 and Pay Equity Legislation. The report also recommends strategies like job rotation and skill diversification to create a more effective and motivated workforce. The analysis underscores the need for 3M Canada to regularly review and adapt its compensation policies to maintain a competitive edge and ensure employee satisfaction. The report suggests that 3M Canada should focus on the areas such as paid absences, minimum wage, wage rate adjustments, and compensation packages to improve the workforce.

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Compensation Management 2
Question 5
3M Canada is a company with diversified business operation system. The company
manufacture products in different industries so as to satisfy the demands of the market. The
company applies managerial strategy to plan most of the operations within the scope of its
operation. The managerial strategies applied by 3M involves five areas. That is their
environment, their strategy, their technology, their size and their workforce. In this paper, we
consider the workforce of 3M Canada. Therefore, compensation system needs to be applied to
improve workforce in 3M Canada. Typically, compensation refers to benefits achieved by
employees of a company as a result of extensive work. Therefore, the main aspect of a
compensation system that needs to be improved by 3M Canada is workforce. This aspect has a
perfect positive correlation towards achieving goals and objectives in the 3M organization.
In order to fully demonstrate the managerial strategy to be applied in the workforce, we
consider the present relationship between 3M Canada and the employees. From the case study, it
is very clear that 3M Canada has a close relationship with employees. There are a lot of
privileges granted to employees by the company. From the case study, the workforce in the
company is relative older with an age average of 46-year-old. For that reason, 3M employs 80%
of workers on a permanent basis. The other 20% is under contract. The company provides the
employees with career growth and development. This is achieved through annual reviews,
training and equal opportunities. 3M provides leadership training to high potential employees.
Other benefits granted to employees include improved infrastructure, retirement benefits, and
incentives plans, medical and dental benefits.
However, despite all these benefits, there are changes that need to be improved so as to
build a better workforce. The first issue relates to policy regarding paid absences. The employee
gets 3 weeks paid vacation after one year of employment. This policy needs to be improved. 3M
needs to reconsider this policy and provide equitable services to all employees (Kelly, 2014). For
this policy to be effective, 3M needs to pay employees equally on vacation regardless of years of
work. This strategy should be guided by Bill 148 of Employment.
Another aspect that needs to be improved in the workforce is minimum wage. 3M needs
to increase the minimum wage for employees. This will assist the company to maintain

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differentiation of different grades of workers. This strategy should be formulated by 3M
compensation team so to provide the best base salary for workers. The compensation team needs
to re-evaluate the budget so as to initiate a new pay grid for employees. This strategy should be
guided by Pay Equity Legislation.
Another aspect of a workforce that needs to be improved is wage rate adjustments. There
are cases of minimum wage hiking in Alberta and Ontario. 3M needs to review the minimum
wage adjustments in these areas (Senger, 2005). This requires a compensation system where
compensation team needs to initiate legislative changes in all provinces in Canada. Lastly, a
better compensation package for employees needs to be improved. This should be achieved
through job rotation, diversifying skills for workers, intrinsic and extrinsic motivation to
employees.

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References
Kelly, D. (2014). The Book on Incentive Compensation Management. Compensation Architect.
Senger, J. (2005). Designing a Not-for-Profit Compensation System. Wiley.