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Walmart Employee Benefit Package4/25/2021
As this is as much as some local competitors accomplish in a year, its clear why Wal-Marts SuperCenters must devote the majority of their key departments to keeping the supply chain, logistics, and fulfillment processes moving rapidly to rapidly turn inventory and also aggressively manage pricing, a point of contention in many of the Wal-Marts management teams as the focus on being the loss-leader is difficult to reverse once fully in place.Wal-Marts Compensation And Benefits The logistics, marketing, and supply chain processes that Wal-mart relies on to obtain such drastic cost and time efficiencies relative to competitors forces its Associates to have multiple job descriptions, work varying shifts, and often fit within a part-time work schedule.The intent of this paper is to evaluate Wal-Marts employee compensation and benefits programs.As Wal-Mart operates using the SuperCenter as the center of their approach to organization and staffing, this analysis is presented from the standpoint of a typical super store location.
Extrapolating these results across the approximately 550 stores in the U.S. Get full access for only 8.97. Central to the compensation and benefits programs at Wal-Mart is the increasingly reliance on having stores open 24 hours a day. It is thought by senior management that this type of around-the-clock availability is a major differentiator in terms of service. ![]() With 36 of any given SuperCenters employee base dedicated to keeping their supply chains moving but also being given the tasks of assisting with logistics and order management, the remaining 64 of the employees must be distributed across many departments. As a key assumption of Wal-Marts financial planning and forecasting for any given SuperCenter, the assumption is that made the majority of employees will work full-time yet have multiple roles through the store, from supply chain tasks to retailing. This equates to significantly less in compensation and benefits expenses as each employee has multiple roles, which as a result leads to greater pressure to keep payroll and benefits costs as low as possible (Adamy, 2008). Walmart Employee Benefit Package How To Distribute WorkersStaffing Strategies Define Compensation and Benefits Costs Thesis on Walmarts Compensation and Benefits Employee Benefits Assignment Wal-Mart specifically focuses on how to distribute workers across departments so that compensation and benefit costs can be minimized. Paradoxically Wal-Mart staffs those departments that get the most in-bound shopper traffic with the least employees and instead concentrates on having up to 120 overnight associates who unload trucks and stock shelves. This illustrates the point of Wal-Mart relying on their workforce to both contribute to the last mile of their supply chain, or the fulfillment, stock and replenishing of its stores. In effect Wal-Mart is paying these 120 overnight associates to have dual roles, that of warehouse worker as they unload trucks and semis, retail detailer, as they stock shelves with products, and 247 support for supply chain coordination to the store level. Table 1 compares the size of the store, average annual sales, operations expense and of workforce that is full-time. Table 1: Comparing Store Statistics Store Type Division Average size (in Square Feet) Annual Sales per Store (U.S.Millions) Operations Expense ( of Store Sales) Average Number of Employees (Estimate) of Workforce full-time Discount Stores Division One Wal-Mart SuperCenters Division One SAMs Club SAMs Loal Markets Division One Sources: Wal-Mart Annual Reports; SEC Filings from discount chains Table 2 provides insight into the number of associates needed by department, supervisors needed, associate and supervisor wages as well. This further underscores the point of how critical it is to have employees in multiple roles. Table 2: Staffing and Wage Levels by Department WAL-MART DEPARTMENTS ASSOCIATES NEEDED BY DEPARTMENT SUPERVISORS REQUIRED BY DEPARTMENT ASSOCIATE WAGES PER WEEK BY DEPT (40 hrs x avg. For 89 Supervisors and Managers at an average rate of 11.68 per hour the cost for a 40-hour week is 41,580. Table 2 provides a department by department analysis of both Associate and Supervisor wages and provides the foundation for calculating what level of Sales the SuperCenter must attain to accomplish the target of 60 per square foot for the 190,000 square foot store, or 11,400,000 (SEC, 2009). Taking the weekly Associate labor cost of 209,520 and multiplying by 52 weeks yields a yearly figure for Associate salaries alone of 10,895,040 with an additional 2,162,201 for the annual salaries of Supervisors and managers. With both of these goals in mind - paying the Associates, Supervisors and Managers even the median levels of hourly wages and accomplishing the profit objective of 60 per square foot taken together sets the goal of 24,457,241 just for these two objectives. This translates into a run rate of 470,331 per week just to cover these two objectives.
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