Introduction Wal-Mart, the largest retail in the United States, receives negative attention on its offerings for employees: prohibited or halted unionization and wages below the poverty lines. This compensation analysis determines the viability of Wal-Mart’s plan, including whether the organization minimizes its risks with the compensation it offers, while attracting the best candidates for the organization to meet its goals. To effectively evaluate the compensation plan, the organization analyzes the job description, scans the environment, examines the cost of benefits, and studies policies and regulations. First, the manager decides which key positions are most important in the organization’s objectives to meet its goals. Then it looks beyond the local arena and scans the environment, evaluating other comparable positions throughout the state and nation. Third, the examination of the cost of benefits includes predicting possible increases or decreases in the next year to five years the organization considers. The last component involves policies and regulations that affect compensation and benefits. When finished, the organization …show more content…
Some examples of benefits most employees seek are health insurance, retirement plans, and day care. Wal-Mart provides health insurance, described earlier, but plans to raise the premiums by 20% for full-time employees, and concurrently eliminating access for 30,000 part-time workers due to expected rises in health care costs, amounting to over $330 million above its budgeted amount for this year (Johnston, 2014). Next year, employers predict health benefits to rise to around 4.3% per employee, averaging around $11,484 per employee (Miller, 2015). As rates continue to increase, employers reduce the benefits and pass the costs to the employee through higher out-of-pocket costs and reductions in family