Compensation Walmart- the Increase in Turnover Rates and...

Compensation: The Increase in Turnover Rates and De-motivated due to Low Compensation Name(s): Sukhraj Bhangoo, Nida Aamir, Warda Shafiq, Course: HRM2600 Date: Novemeber 12, 2010 Compensation is a form of pay and rewards received by employees on the basis of their performance. Compensation divides into two parts: direct and indirect compensation. Direct compensation includes employee wages and salaries, incentives, bonuses, and commission. Indirect compensation includes employee recognition programs, rewarding jobs, organizational support, work environment and flexible work hours to accommodate personal needs (Belcourt et.al, 370). â€Å"Wal-Mart† is the biggest retail and grocery chain in the world. Currently,†¦show more content†¦As one possible solution to achieve a fair distribution of bonus funds and to prevent turnover, Wal-Mart should implement a performance appraisal system. Performance appraisal is the process by which organizations evaluate employee performance based on preset standards. The main purpose of appraisals is to help managers effectively staff companies and use human resources, and, ultimately, to improve productivi ty. Health care incentives are a form of direct compensation. The issue raised in the article, U.S. News: Trade Group Challenges Wal-Mart on Health Care --- Federation Urges Members to Take a Stand Against Companys Support of Plan Requiring Employers to Help Pay for Insurance is that Wal-Mart requires its employees to contribute to their own health insurance, or seek other alternatives such as welfare. The month after Wal-Mart announced its support of a centerpiece of President Barack Obamas $1 trillion plan to extend health-care coverage to nearly all Americans, the action was going into a dispute (http://proquest.umi.com/pqdweb?index=71did=1784367831SrchMode=3sid=1Fmt=4VInst=PRODVType=PQDRQT=309VName=PQDTS=1289253857clientId=5220aid=2, 11/2/10). The new expensive health insurance put pressure on Wal-Mart’s profit gains and to compensate, Wal-Mart reduced labour costs: The most liberal proposal to have companies help pay for the health-care overhaul, currently under consideration in the House, would require all but theShow MoreRelatedNordstrom Versus Walmart: Differences in Compensation and Benefits and the Effect on Organisational Performance3011 Words   |  13 Pagesslightly less, around $10.75 per hour. She will make $19,000 a year, calculated over an average working week. Pat will make over $90,000. 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