HRMT 200: A Detailed Review of Kruger Products' Compensation System

This report provides a comprehensive review of Kruger Products' compensation system, a leading tissue manufacturer in Canada. Founded in 1904, Kruger Products employs over 10,500 individuals and operates across North America. The analysis covers internal equity, detailing how the company establishes fair pay based on job roles, experience, and performance, and external equity, outlining processes used to align compensation with market standards. It further explores the various benefits offered to employees, including health insurance, training programs, and retirement plans, along with benefits extended to employees' families, such as educational scholarships. The report concludes that Kruger Products prioritizes employee well-being by offering competitive compensation and comprehensive benefits, supported by continuous monitoring of market trends and competitor practices to maintain a fair and attractive work environment.

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KRUGER PRODUCTS

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Contents
Introduction....................................................................................................................2
1.1 Company profile...................................................................................................2
1.2 Internal Equity......................................................................................................3
1.3 Compensation...........................................................................................................4
1.4 Benefits....................................................................................................................5
Conclusion......................................................................................................................7
Refrences........................................................................................................................8

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1.1 Introduction
Krurger Products is Canada’s leading manufacturer of tissue products for industrial,
commercial use and household. It is a leader in North America in paperboard recycling and
and paper also operates in other countries these are Newfoundland, Ontario, British Columbia
and the United States. It was founded in 1904 by the Joseph Kruger in Montreal (Kruger
Products, 2017a). The company’s work is divided into two major parts which are Industrial
products and Consumer products. The company supply its mills with containerboard and
recycled paper for the production of recycled paper products and recycled stock. It also
produces boxes for large electrical appliances. Now, white cloud is recognised the best
bathroom tissue in the United States which is the main product of Krurger products. They
change the lifestyle of the Canadian women and their families affected by cancer. They
financially support the breast cancer research, education and awareness activities (Kruger
Products, 2017b).
In this report, company functions, size, type of employees, location and the type of
benefits providede by the company to their employees will be discussed. Internal and external
equity is also analysed.
1.2 Company profile
Skill and dedication of the employees makes the company one of the leading
companies in Canada. They offer paper towels, bathroom tissue, facial tissue, paper napkins,
hand care wipers and dispensing system across North America. They provide the high quality
and cost-effective products which are ecologically sound (Kruger Products, 2017c). They
believe on Courage, dedication, excellence, Integrity and teamwork. Without compromising
product protection they work on minimize the packaging. They produce products by using
certified fibre that has been verified by the Forest Stewardship Council. They provide

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environmental friendly products which has a green seal. They focus on reducing the
greenhouse gas emissions. Krurger Productions perform the internal and external functions.
Krurger production manufacture the tissue with the new technology or improving services or
products. New product designed is more crucial factor in the survival of company. Company
advertises its product by the help of media or posters and banners. Its manufacturing
locations are aligned with natural resources and located in population centres that show 60%
of U.S. consumers and 90% of Canadian consumer (Kruger Products, 2017d). Its
headquaters in Mississauga, Ontario located across North America. Krurger Products has
grabbed the 31.5% of the total facial tissue market in Canada (Statista, 2016). It is the only
tissue product company which operates in Western Canada. They continuously exceed their
consumer and customer expectation. The company operates through three segments which is
consumer, away from home and other. It provides bathroom and facial tissues under the
embassy and esteem brands to wholesale distribution serving. Company eight manufacturing
plants, one-third of Canada’s total tissue manufacture by the Kruger products. Apart from
this, it has 38 renewable energy power plants and also 19 manufacturing or production
operations. Krurger products is selected in Toronto’s top employers. The reason behind is
that they invest in the education of children of employees and also host internal focus groups
to understand desire of millennial employees. Kruger employees are diversified in their
operations which maintains a long-term outlook and openness for new ideas and innovation.
The company have 10,500 employees in the company. Krurger products head office is
located in Ottawa, and Offices are located in Canada, Mexico, Montreal, United States, Nova
Scotia and Toronota. Power plants of the company are established in Quebec city, Detroit,
Montreal and Portland.

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Internal Equity
Comparison of positions within the business to ensure fair pay is called internal
equity. In this, if two person perform the same task then they earn same wages. Krurger
Products pays differently according to the post of the employees (Terera, & Ngirande, 2014).
The impact of rewards on employee retention and job satisfaction. Kruger pays the same
salary to employees who perform the same task. Kruger pays equally even the job title of the
employees is different but the performance of the task is same. Similar tasks are important at
the time of setting employee wages (Ou, & Haynes, 2006). At the time of setting salary,
education and experience of the employee is also consider. Kruger also consider the
education and experience of the employees at the time of hiring. Kruger set employees salary
by divide them in three categories which is higher level, middle level and lower level. Lower
level of employees perform same task and earn same salary but the salary of higher and
middle level are different or high as compared to the lower level of employee. Middle or
higher level of employees have different salary according to their position and task. As per
there positions or tasks, Kruger set pay scale of their employees. By adopting a straight and
honest payment system, the company selected as Toronto’s top employers (Kruger Products
L.P., 2018). Kruger products pay hourly approximately $17.79 per hour for line operator to
$40.08 per hour for Journeyman Electrician. The company give opportunities to all
employees to get bonuses. Bonuses based on the employee performance or the traditional end
variety which create the competencies for employee. Supervisor or director set a target for
their employee at the beginning of the year. Employee get the reward after met their targets, it
is not counted in the salary (Baumgarth, & Schmidt, 2010). Company give the bonus to the
employees as a thank you for work done during the year.

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1.4 Compensation
Compensation is an extra benefit which is given by the company to an employee in
exchange for the performance which they do for the business. It is biggest expense for every
company because it is more than the employee’s noraml paid wages. Kruger Products
determines an employees compensation as per their performance (Hansen, 2007). Kruger
products make the budget before paying the compensation to the employees for their services.
The company has appointed a person in charge for overseeing the entire process of
compensation. It has a department which is responsible for paying compensation to the
employees with an accurate amount. It means they are in charge of the budget and have to
make sure that employee get the compensation with an accurate amount instead of relying on
HR (Bryant, & Allen, 2013). Apart from all these, before paying the compensation
management of the Kruger Product analyses the job title of the employee. Worth of the job
duties and position is also analysed by the company before paying the money to the
employee. The company collects the data through the survey within the industry.
Compensation given by the company after completing the task which is assigned by the
supervisor or director. Therefore, employee will be required to complete the task. After the
completion of the task, company decides the compensation for each position by research on
other tissue companies in the market and determines employees salary as well. They also
determine the basic salary of the employee by comparing with the other company. Kruger
product have different levels of employees, it has new hires, executives, management, as
well. They have a pay range according to the levels. Kruger decides the amount of
compensation after research or analysis of all the data. At the time of new hiring company
analysed the compensation amount in the market. Kruger Product appointed the someone as
the market researcher who research the market rates and conditions. Kimberly-Clark Inc. is
the competitor of Kruger products in the tissue market (Kimberly-clark, 2018). Kruger

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attracts the employees of the competitor company. Kruger appoints the employee of the
competitive company who resigned that company which is easy way to know the
compensation scheme of the opposite company. Kruger appointed an in charge for the
compensation amount. Incharge gives the compensation amount without any fault and
according to the policies. Kruger pays the compensation amount to the employees from the
fund which is established for the compensation money. From these processes, company
ensures that the compensation amount is at competitive rates within the marketplace.
1.5 Benefits
Kruger Products gives many benefits to the employees excluding salary. It gives the
compensation after completing targets. It also gives an opportunity to all the employees to
earn incentives and rewards by performing excellent work. Bonuses are also provided by the
company on the basis of performance and traditional year ending. Kruger Products believes
that a happy empolyees is a lifelong asset (The Globe and Mail, 2018). Therefore, a wide
range of benefits are given by the company to the employees for their life. The company
takes care of the employees health by group insurance or life insurance. Employees develop
with the development of the company, they provide training through ongoing in company
training programs or by developing activities. Kruger Products also think about the families
of the employees. They invest in the education or offering academic scholarship of their
children. They recently extended their support for employees who are new fathers or mothers
by providing them maternity leave up to 17 weeks and parental leave to 5 weeks. The
company provides the benefits to the employees for long-life even after the retirement. After
the retirement of the employees, company offers pension plan as well as health benefits
which extends with no limits. They believe in giving the employees the space to grow within
a dynamic, stimulating environment for nurturing their development, appreciate their

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involvement and enriching their professional lives. Apart from all these, employees get the
allowances or work benefits. Employees receive paid vacations of 3 weeks o specially new
employees and they get the individual reviews in every 6 months. It has good work
environment like flexible work hours, health benefits and if any employee work after the
office hour then they earn extra incentives (Terera, & Ngirande, 2014). Company works like
a family, and they encourage teamwork and supporting employee initiative which contributes
in their success.

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Conclusion
In this report, Kruger Products compensation or benefits to the employee was
analysed. Kruger Products is Canada’s tissue manufacturing company. It was founded in
1904 by the Joseph. The company sets the salary by dividing the staff into three levels which
are higher, middle and lower level and also on the basis of their education and experience.
Compensation is also provided by the company to their employees excluding salary. It is the
biggest expense for the company. Kruger Products has appointed an in charge for paying the
compensation with the accurate amount by analysing the market and competitor’s
compensation amount. There are various benefits which are provided by the company. Not
only for employees, they also provide the benefits to the employees families. Group
insurance, investment in the education of their children. They also provide the trainee through
training programmes. They believe in employees happinees that is why it provides the
benefits after the retirement by registered pension plans.

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Refrences
Baumgarth, C., & Schmidt, M. (2010). How strong is the business-to-business brand in the
workforce? An empirically-tested model of ‘internal brand equity’in a business-to-
business setting. Industrial Marketing Management, 39(8), 1250-1260.
Bryant, P. C., & Allen, D. G. (2013). Compensation, benefits and employee turnover: HR
strategies for retaining top talent. Compensation & Benefits Review, 45(3), 171-175.
Hansen, F. (2007). Currents in compensation and benefits. Compensation & Benefits Review,
39(3), 5-27.
Kimberly-clark, (2018). Trusted Brands. Retrieved from:
https://www.kimberly-clark.com/en-us
Kruger Products L.P., (2018). Recognized as one of greater toronto's top employers.
Retrieved From: https://content.eluta.ca/top-employer-kruger-products
Kruger Products, (2017). Our Story. Retrieved From:
http://www.krugerproducts.ca/about.php
Kruger, (2017). Our business sector. Retrieved from: http://www.kruger.com/products-
services/
Kruger, (2017). Our Locations. Retrieved From: http://www.kruger.com/contact-us/location/
Kruger, (2017). Why Work at Kruger. Retrieved From: http://www.kruger.com/careers/why-
work-at-kruger/
Ou, C., & Haynes, G. W. (2006). Acquisition of additional equity capital by small firms–
findings from the national survey of small business finances. Small Business
Economics, 27(2-3), 157-168.

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Statista, (2016). Leading facial tissue brands based on market share in Canada as of
September 2016. Retrieved From: https://www.statista.com/statistics/754086/market-
share-of-leading-facial-tissue-brand-in-canada/
Terera, S. R., & Ngirande, H. (2014). The impact of rewards on job satisfaction and
employee retention. Mediterranean Journal of Social Sciences, 5(1), 481.
The Globe and Mail, (2018). Bonuses that are available to all motivate staff. Retrieved from:
https://www.theglobeandmail.com/report-on-business/careers/top-employers/bonuses-
that-are-available-to-all-motivate-staff/article5434755/
Tomczak, T., Reinecke, S., & Kuss, A. (2018). Introduction. In Strategic Marketing. New
York: Springer, pp. 1-18.