Mapping Compensation
Mapping Compensation
Joyce Nebrida
Regis University
Compensation Policy and Employment Law
BA 467
January 7, 2015
Mapping Compensation
Microsoft’s compensation strategy is one that is very focused on pay as a reward for employee performance. There is not as much of a work/life balance within Microsoft’s compensation policy, because it is more concerned with the prominence and competitiveness of its company. It seems to be a “work now, figure out your life later” type of company. Wal-Mart has a lot of these things in common with Microsoft, although Wal-Mart tries to soften the blow at times by cushioning their employment strategy with a discount card or special privileges. Most of the employees at Wal-Mart start at around $8.80 an hour, but that is just the base pay. If an employee does well within the company, over time, Wal-Mart will steadily increase the employee’s paycheck, depending on his or her performance of their duties that year. That is where the performance-based pay that is similar to Microsoft’s strategy comes into play. If an employee does well, he or she will get a raise. If not, then the raise will not happen. A lot of people who try to work at places like Wal-Mart expect instant gratification for their accomplishments, but they will not receive it. An employee must work hard to earn the raise given to him or her at their time of the year.
In Figure 2.8 in the text, Microsoft and SAS are compared and contrasted in a compensation map. On Microsoft’s side, there seems to be a very low focus on work/life balance, and the same can be said for Wal-Mart. If an employee accepts a shift at Wal-Mart, he or she had better show up, or risk being fired. Wal-Mart is very strict in this area and does not accept a lot of excuses as far as frequent “family emergencies” or problems. From personal experience, if there is a death in the immediate family, Wal-Mart will ask for a copy of the death certificate as proof that the employee is not
Joyce Nebrida
Regis University
Compensation Policy and Employment Law
BA 467
January 7, 2015
Mapping Compensation
Microsoft’s compensation strategy is one that is very focused on pay as a reward for employee performance. There is not as much of a work/life balance within Microsoft’s compensation policy, because it is more concerned with the prominence and competitiveness of its company. It seems to be a “work now, figure out your life later” type of company. Wal-Mart has a lot of these things in common with Microsoft, although Wal-Mart tries to soften the blow at times by cushioning their employment strategy with a discount card or special privileges. Most of the employees at Wal-Mart start at around $8.80 an hour, but that is just the base pay. If an employee does well within the company, over time, Wal-Mart will steadily increase the employee’s paycheck, depending on his or her performance of their duties that year. That is where the performance-based pay that is similar to Microsoft’s strategy comes into play. If an employee does well, he or she will get a raise. If not, then the raise will not happen. A lot of people who try to work at places like Wal-Mart expect instant gratification for their accomplishments, but they will not receive it. An employee must work hard to earn the raise given to him or her at their time of the year.
In Figure 2.8 in the text, Microsoft and SAS are compared and contrasted in a compensation map. On Microsoft’s side, there seems to be a very low focus on work/life balance, and the same can be said for Wal-Mart. If an employee accepts a shift at Wal-Mart, he or she had better show up, or risk being fired. Wal-Mart is very strict in this area and does not accept a lot of excuses as far as frequent “family emergencies” or problems. From personal experience, if there is a death in the immediate family, Wal-Mart will ask for a copy of the death certificate as proof that the employee is not
References: Milkovich, G. T., Newman, J. M., & Gerhart, B. (2011). Compensation (10th ed.). New York, NY: The McGraw-Hill Companies, Inc.