Compensation and Benefits Essay

This assignment compared and contrasted compensation programs of McDonalds and Walmart Canada. It look at the Philosophy, Base pay, nearsighted name and Long Term cash incentives, indirect compensation benefits and Recognition programs. The Philosophy of McDonalds is Pay for exercise patch Walmart promises a lot of rush opportunities. McDonalds compensation program is much suited to encourage young high performance ending. While Walmart rewards more stable employees that will stay with the family for a long term. Compensation System comparison of McDonalds Restaurant and Wall-Marts (Canada) Compensation Items McDonalds Restaurant Wall-Mart(Canada) Pay and Rewards Philosophy Pay for performance philosophy. The better your results, the greater your pay opportunities.Culture rewards us. Anything is possible. Career opportunities. Base Pay Competitive payoff. The average starting hourly pay $9.97 Annual salary for Managers and wages for the crew. Competitive wages. The average s tarting hourly pay $10.55 Annual salary for Managers and wages for the sales associate. Short Terms Cash Incentives Bonuses based on one-year performance review and company strategic performance. Tar crush Incentives Pay. Bonuses based on annual performance review and company strategic performance. They always paid bonuses since 1997 horizontal there is a recession.The Comparison AnalysisThe Philosophy of McDonalds is Pay for Performance it means that if your performance is better you will get a high compensation. In contrast, Walmarts slogan is Anything is possible, meaning a lot of career opportunities are available to Walmart employees. McDonalds is encouraging high performance culture (but that is likely suited for shorter term employees) while Walmart is more suited for people who look for long term career in a company and more opportunities to grow. Both companies offer competitive base pay. The entry level the crew or sales associates get hourly wages but the senior employ ees/Managers get base salary pay. Both companies offer short term cash incentives variable bonus pay based on company performance and employee performance review.The Walmart boasts that they pay bonuses even recessions. For long term cash incentives, both companies offer profit sharing plan. However, the Walmart has Group RRSP. Whereas, the McDonalds has a savings plan. The Walmart offers the long term disability coverage, maternity leaves glide by up, while the McDonalds offers more financial assistance programs and retirement benefits which is limited to severance package. For indirect compensation/benefits, McDonalds rewards top performers with a car program, while Walmart gives 10% discount on everything purchased in their stores. Recognition program at McDonalds is more intensive and includes awards like employee of the month, while at Walmart it is yearly Star of the Year award.ConclusionThe compensation program of Walmart Canada is more tailored for long termstable employee s while the program at McDonalds is better suited for younger, likely temporary employees and encourages high performance culture.