Discuss how Wal-Mart’s compensation and benefits package is a key component of its strategy

Discuss how Wal-Mart’s compensation and benefits package is a key component of its strategy ?

ANSWER:

Wal-Mart’s compensation or pay systems are programmed and are formalized to attain organization motives and common motives according to which lead growth of company objectives. Initially, designing a compensation which will helps in managing and recognizing employee’s contribution and its need. Equity pay system is the basic pay method which portrays equal fair pay for a day work. This pay system ensures equal pay to the employees.

As organization adopts different policies for compensating, attracting and retaining employees so the organization has to be leader in pay than competing firms. It should designate an employer’s ability to pay and provide benefits to employees. The relative worth of jobs is determined and jobs with higher worth are paid more so organizations need to base their pay levels on the worth of the job rely and evaluation. Individual compensation and reward is linked according to its performance so appraisal data provides the input for determining employee pay levels.