Walmart is one of the largest retailers in the globe. The company is a giant in its industry. Being one of the highest grossing retail enterprises in the globe, the company is always in the limelight. Founded in 1962 by Sam Walton, Walmart holds stakes in discount department stores, hypermarkets, grocery stores and the like. Initially operating only in the US, the company’s continuous profits have propelled Walmart from a national company to a multinational retail corporation with billions of sales annually. One of the peculiar things about Walmart is its pay structure. The corporation’s pay structure differs significantly from pay structures of other multinationals like Google. Although the companies operate in different industries, their structures mirror each other’s. However, there is a huge difference between the pay structures of the two companies. This paper will explore the differences between the pay structures.
Motivation is an essential element in the functioning of any employee. An employee devoid of motivation is bound to underperform. The greatest source of motivation for many employees is the payment package. Motivation plays a vital role in the performance of Walmart and Google. The salary package that accompanies the employees at Google increases their performance compared to the salary package at Walmart. The companies’ organizational strategies although different are both effective. Also, both companies generated huge profits. However, workers’ opinions of Walmart illustrate dissatisfaction with many unhappy with the pay package(Monarth, 2012). On the contrary, workers talk highly of Google and its pay packages. The communication strategies of both companies are also different with Google opting for an open approach with 97% of employees claiming communication at Google caters for all employees(Google inc., 2016). On the other hand, Walmart uses an approach that isolates millions of its staff with campaigns and protests launched by current and former employees. As briefly described earlier, the companies use different pay structures. Walmart’s pay structure seems to cater for higher employees with the lower employees underpaid. The lowest employees in Walmart make approximately $30,000 annually with incentives while the CEO makes above $15 million depending on the incentives he receives annually(Jamieson, 2013). Google’s pay structure caters favorably for every employee with the lowest paid intern earning approximately $5000 per month. Research and Surveys have indicated that Google employees are satisfied with their pay structures. Google ranks highest among companies that offer the most attractive compensation packages. On the contrary, Walmart’s employees are not satisfied with the salary structure, and this is illustrated by the protests that the company faces. Google’s attractive pay structure may be partly influenced the competitiveness of its industry. The tech industry has many companies, and the labor pool is limited. The companies must offer attractive pay packages to attract new talent. On the other hand, Walmart is an industry giant with a global force of employees. The company pay structure is influenced by the large labor pool which forces the company to reduce its pay to cater for the many employees. Of the two companies, Google seems to provide more incentives to its employees. Its pay structure, environment and general ethical standards provide motivation to its employees(Lynley, 2012). On the other hand, the constant protests from Walmart’s employees illustrate an uncomfortable working environment. Also, Walmart’s pay package is unattractive and considered unfair compared to the pay packages of the highest employees. As an employee is given an opportunity to work for one of the companies, I wouldchoose Google as its incentives as more attractive. Also, Google cares for its employees on all levels.
Looking at both companies, as a human resource manager at Walmart, it would be wise to look at Google’s management. If I were the HRM at Walmart, I would start by increasing the pay package of the lower employees to coincide with the work done. Also, I would introduce new channels of communication that would cater for the many employees.
Google Inc. (2016). Retrieved from Great Place to Work:
Jamieson, d. (2013, October 24). Most Walmart Store Workes didn’t earn $25000 last year.
Lynley, M. (2012, May 29). The Highest Paying Jobs At Google [Ranked].
Monarth, H. (2012, November 21). Wal-Mart and the Perils of Ignoring Staff Complaints.