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Assignment 1: Compensation and Benefits

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Assignment 1: Compensation and Benefits
Compensation and Benefits HRMT311 Sect. 841
Assignment 1: Compensation System Comparison between McDonald’s & Walmart Canada
Executive Summary
This assignment compared and contrasted compensation programs of McDonald’s and Walmart Canada. It look at the Philosophy, Base pay, Short term and Long Term cash incentives, indirect compensation benefits and Recognition programs.
The Philosophy of McDonald’s is “Pay for performance” while Walmart promises a lot of career opportunities. McDonald’s compensation program is more suited to encourage young high performance culture. While Walmart rewards more stable employees that will stay with the company for a long term.
Compensation System comparison of McDonald’s Restaurant and Wall-Mart’s (Canada)
Compensation Items McDonald’s 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 wages. The average starting hourly pay $9.97
Annual salary for Managers and wages 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 based on annual performance review and company strategic performance. Target Incentives Pay.
Bonuses based on annual performance review and company strategic performance.
They always paid bonuses since 1997 even there is a recession.
Long Terms Cash Incentives Profit Sharing and Savings Plan
Mc $ave
MC Direct Shares
Credit Union
Financial plan assistance
Retirement Benefits
Employee provident fund
Employee state Insurance
Bonus- 8.33% of base salary at retirement year.
Gratuity-severance package
Associate stock-ownership Plan
Deferred profit sharing plan (100% funded by Walmart stakeholder program (bonus based on store performance)
Group RRSP
Long term Dis ability coverage
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