Compensation and Benefits Essay

This assignment compared and contrasted pay classs of McDonalds and Walmart Canada. It explore at the ism, Base pay, Short endpointinal figureination and Long Term cash incentives, indirect compensation benefits and Recognition programs. The Philosophy of McDonalds is Pay for surgery while Walmart promises a lot of career opportunities. McDonalds compensation program is more(prenominal) than accommodate to encourage young high carrying out culture. opus Walmart rewards more stable employees that allow for stay with the company for a farsighted term. remuneration 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 improve your results, the greater your pay opportunities.Culture rewards us. Anything is possible. Career opportunities. Base Pay emulous wages. The average starting hourly pay $9.97 Annual allowance for Managers and wage s for the crew. Competitive wages. The average starting hourly pay $10.55 Annual salary for Managers and wages for the sales associate. Short Terms Cash Incentives Bonuses stall on annual performance review and company strategic performance. Target Incentives Pay. Bonuses based on annual performance review and company strategic performance. They endlessly paid bonuses since 1997 even 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 higher 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 foresighted term career in a company and more opportunities to grow. Both companies hug drug competitive base pay. The entry level the crew or sales associates get hourly wages but the senior employees/Managers get base salary pay. Both companies conjure short term cash incentives changeable 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 top 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% throw out 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 grade award.ConclusionThe compensation program of W almart Canada is more tailored for long termstable employees while the program at McDonalds is better suited for younger, likely temporary employees and encourages high performance culture.