Walmart incentive Pay

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MANAGING TALENT: How Wal-Mart Is Setting Pay at the Top ... and Bottom 1.

MANAGING TALENT: How Wal-Mart Is Setting Pay at the Top ... and Bottom Alyssa Cash Kaplan University MT203: Human Resources Management – 02 Lisa Hone 02/15/2014

MANAGING TALENT: How Wal-Mart Is Setting Pay at the Top ... and Bottom 2.

Walmart is one of the largest retail companies in the world, raking in billions each year. Sam Walton the founder of Walmart had a vision for its store and sadly his vision for selling American made merchandise, the best customer service and home to all employees has failed miserably in recent years. I use to work for Walmart so reading this article sparked interest and a little bit of outrage at how much money the CEO is making when its employees are suffering. In this case analysis I’ll report the actual finding for what Walmart pays its employees and just what they think of it.

1. Compare the impact of incentive pay on the total compensation of Wal-Mart’s CEO and the company’s average workers. Does the difference in the way pay is structured at these two levels make business sense? Why or why not?
In this article it said “he average wage for an hourly Wal-Mart employee in the United States $12.40 per hour.”(Gerhardt, Hollenbeck, Noe, & Wright, 2009) I’ve spoken to many Wal-Mart employees and know that Wal-Mart only pays its employees barely more than minimum wage. I looked up the U.S Department of Labor “The federal minimum wage for covered nonexempt employees is $7.25 per hour effective July 24, 2009.”(USDL 2014) and states can actually make up their own wages and



References: Gerhart, B., Hollenbeck, J., Noe, R., & Wright, P. (2009). Fundamentals of human resource management (3rd ed.). New York, NY: McGraw-Hill. U.S Department of Labor (2014) Retrieved from http://www.dol.gov/dol/topic/wages/minimumwage.htm Making a Change at Walmart (2014) Retrieved from http://makingchangeatwalmart.org/factsheet/walmart-watch-fact-sheets/fact-sheet-wages/

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