External Job: Alignment and Benefits, Essay Example

Looking at the information provided in part 1 of the job case study, the person interviewed was Bill Packer, an inventory management specialist from Wal-Mart. In collecting information on the job description and importance in Wal-Mart, this paper used several techniques including, internet searches that led to Wal-Mart’s Career website, job descriptions from other sources such as Jobing.com, Ehow.com, and other sources. The main source used however came from Mr. Packer himself that provided an overview of what his position is at Wal-Mart. The interview with Mr. Packer provided the best and most credible source for collecting information on his position, because it is his perspective as an employee of Wal-Mart for over 10 years. The other sources that primarily included internet sources were also credible and the most effective in supporting a proper job analysis of the position of inventory management specialist.

Looking at the organizational structure of Wal-Mart, the company tries to provide department managers that closely follow a matrix structure in which each employee from whichever department is able to respond to the needs of the customer. In determining the position in the external job market, this paper uses information gathered from Glassdoor.com that provides salary information, as well as other sources that examine the wages of Wal-Mart’s workers compared to the rest of the market. In doing so this paper has painted a clear picture, that even though Mr. Parker’s job is high up in the individual Wal-Mart organizational structure, compared to the market, he is not adequately compensated.

The external market for Wal-Mart is a major determinant for their higher level positions. Although they have a minor impact on the external environment of Wal-Mart. Wal-Mart is a billion dollar corporation that is driving by productivity and improvements in technology. However, Wal-Mart does not compensate their workers. According to several published reports, Wal-Mart’s employees are some of the lowest when compared to the national average wage of $15 an hour. Wal-Mart on the other hand pays, “an average $8.48 an hour, versus $8.80 an hour.” (Banjo, 2014) Additionally, “still, Whole Foods and Costco’s cashiers make a 20% to 40% premium to Wal-Mart cashiers, with average hourly wages of $10.31 and $11.59, respectively, according to the NBER paper.” (Banjo, 2014) According to Glassdoor, Inventory Management Specialist jobs at Wal-Mart make on average, $48,000 to $52,000 a year, with stock bonuses, profit sharing, and commissions on sales. (Glassdoor, 2014)

This information coincides with other reports that those in management position are paid much better than those that are entry level positions such as the sales associates that make roughly about $19,000 a month. (Glassdoor, 2014) Other information on where their job stood in the external market is looking at similar stores that hire inventory management specialist. Compared to the position of inventory management specialist at Home Depot, the average salary is $20,583, making roughly over $10 an hour. (Glassdoor, 2014) In more beneficial jobs such at the Department of Defense, the U.S Army, and companies such as Alcoa, the average is over $80,000 a year. This is exceptional cases in which the individual needs to hold more educational degrees, more experience, and requires a lot of training in the specific field. For the rest of the Wal-Mart company, the sales associates make on average $8.28 an hour, an assistant manager would make $44,269 a year, and an assistant store manager would make $45,027. (Glassdoor, 2014) The highest paying position at Wal-Mart reported by Glassdoor is the senior vice president, international that makes on average $455,000, while the lowest paying reported was the stock boy position at an average $7,321 a month. Wal-Mart has begun to hire several temporary positions which has cut into the wages of their workers, and has drew a fair amount of additional criticism to how they compensate their workers. According to information taken from Making Changes at Wal-Mart, “Wal-Mart’s wages not only hurt its workers, it hurts our economy. Wal-Mart can do better and Americans must demand they do better.” (Making Change at WalMart, 2013)

The benefits provided for his position includes, stock options that are valued for the position at between $4,808 and $5,245. Also profit sharing bonuses between $2,071 and $2,225, and commissions on sales for upwards of $7,302. (Glassdoor, 2014) Wal-Mart’s Career website also provides additional information on the benefits that each employer receives, such as health and well-being benefits. According to Wal-Mart, “our benefits team works hard to offer associates comprehensive and affordable benefits to help you stay healthy.” (Wal-Mart, 2014) This includes Health Reimbursement Accounts (HRA), and a Health Savings Account (HSA), that provides health care coverage and free access to health care professionals. The HMO plans, dental and vision plan, mental health plan, life insurance paid by Wal-Mart, and accidental death and dismemberment insurance (AD&D). Wal-Mart also provides disability insurance for short and long term, business travel accident insurance, and sick time. The financial benefits are the matching contributions to the 401K, discount card for Wal-Mart associates their spouses and dependents, and exclusive discounts on cars, wireless, travel, and over 375 other services. (Wal-Mart, 2014) Based on the position in the company, the more benefits including vacation time is available.

In getting a better perspective on their job in the market, it is best to ask Mr. Packer again on what he thinks of his role in the company. While locations may vary on the position pay and benefits provided, his position places him high in the organizational structure for the Wal-Mart store, so his pay and benefits would be better than entry-level associates. Questioning Mr. Packer’s benefits and pay mix, he provided information regarding his store benefits.

Mr. Packer: “I have been an employee of Wal-Mart for over 10 years and have worked in the position as an inventory associate to the manager’s position. In doing so I was compensated differently in each position. For the position as an hourly worker, I only earned $7 an hour at the time, slightly getting an increase to $8.50. Once promoted to the manager’s position as one of the department heads, I feel that I am fairly compensated. My salary is over $42,000 a year, which compared to the average is a lot higher. I think it is based on the locale, and the amount of revenue that this store garners. Compared to the cost of living, the pay is more for the skills required also. The benefits received, includes choosing the health care plan coverage; for example we are able to have money given on a flex card that pays for doctor visits and tests if needed to be run. However, the prescriptions, you still need to pay $4, and it often covers the minimum requirement, which they still take out of your paycheck.”

Well do you feel that Wal-Mart’s insurance plan is better compared to industry standards?

“Well in my opinion it is a yes or no answer. I have friends that also work in higher level positions for other companies that provide better coverage. It has just now recently improved from just providing the most minimum to actually offering more affordable plans, and quality health care services. Compared to Obamacare it is highly regarded. The plan choosing from HSA or HRA covers my entire family at roughly $150, and that is full-service coverage. I think it is better than market standards.”

What about vacation time, retirement plans, or other benefits that are offered by Wal-Mart?

“Well Wal-Mart offers a lot of services and incentives to employees, particularly those in higher positions such as managers. They have setup a good retirement plan, a 401K plan which matches up to 6 percent of my salary, which is a mixture of the profit-sharing component, and ESOP component. The retirement plan is only available to full-time workers however, so those that are temp or part-time do not qualify, and there is grace period before getting on for 90 days when first hired. The union does have a problem with this retirement plan however, as before Wal-Mart offered just profit sharing in the retirement plan, because it paid more into workers 401K. The 6 percent match is only available if the worker also puts in 6 percent of our salary. As you can see I do have a lot of trepidation with some benefits of Wal-Mart where I do side with the unions. Most lower level employees don’t make that much a year, and cannot afford to put in an additional 6 percent in their 401k, so I think that is where a lot of criticism comes from. More importantly those that work in these lower level jobs are younger, and do not plan on retiring at Wal-Mart. For other individuals however, it can be a problem when you’re older and the retirement package is not enough.”

Based on the information provided from Mr. Packer and a good amount of information provided from other sources, Wal-Mart has improved on their benefits but only to full-time workers, while also changing their retirement plans to take more time in seeing the benefits. Based on external information, Mr. Packer’s position places him a level where he can reap the benefits of putting up 6 percent of his salary to contribute to his 401k while many in Wal-Mart cannot, he can afford to pay $160 a month in health care coverage, although Wal-Mart has raised their premiums, and he has acknowledge that in some areas Wal-Mart does fall behind the market in terms of pay mix, and benefits to other employees. Other information collected details that Wal-Mart highly discourages unions in their company, and have gone out their way to employ anti-union tactics to avoid having to answer for their insurance and wage compensations. Other information about Wal-Mart’s increase in hiring part time and temporary workers, which Mr. Packer has acknowledge cuts into the wages of other full-time workers, these workers do not qualify for retirement plans or health care coverage.

References

Banjo, Shelly. (2014). Pay at Wal-Mart: Low at the Checkout, But High in the Manager’s Office. Wall Street Journal. Retrieved from http://blogs.wsj.com/corporate-intelligence/2014/07/23/pay-at-wal-mart-low-at-the-checkout-but-high-in-the-managers-office/

Opportunities and Benefits. (2014). Wal-Mart. Retrieved from http://corporate.walmart.com/our-story/working-at-walmart/opportunity-benefits

Pollack, Richard. (2014). Surprise! Wal-Mart Health Plan is Cheaper, Offers More Coverage Than Obamacare. Washington Examiner. Retrieved from http://washingtonexaminer.com/surprise-walmart-health-plan-is-cheaper-offers-more-coverage-than-obamacare/article/2541670

The Home Depot Inventory Management Specialist Hourly Pay. (2014). Glassdoor. Retrieved from http://www.glassdoor.com/Hourly-Pay/The-Home-Depot-Inventory-Management-Specialist-Hourly-Pay-E655_D_KO15,46.htm

Wal-Mart and Workers. (2014). Making Changes at Wal-Mart. Retrieved from http://makingchangeatwalmart.org/walmart-and-workers/

Walmart Inventory Management Specialist Salary. (2014). Glassdoor. Retrieved from http://www.glassdoor.com/Salary/Walmart-Inventory-Management-Specialist-Salaries-E715_D_KO8,39.htm

Wal-Mart Salaries. (2014). Glassdoor. Retrieved from http://www.glassdoor.com/Salary/Walmart-Salaries-E715.htm?sort.sortType=BP&sort.ascending=true

Working at Wal-Mart. (2014). Wal-Mart. Retrieved from http://careers.walmart.com/about-us/working-at-walmart#benefits-accordion