Compensation Research - Part A

Motley Marlins
Emily Holycross, Ryan Bozek, Michael Howard, Keanu Irausquin, Tiffany Jackson

Publix:
Base wages: $9- bagger, $11- cashier, $12- customer service clerk, $12- grocery clerk, $12-
deli clerk, $14- meat clerk, $12- produce clerk, $12- baker clerk, $14- pharmacy tech, (able to
get up to $1 raise bi-annually)
Salaries: Assistant department manager: $50,000, Department manager: $70,000, Assistant
store manager: $87,000, Store Manager: $124,000, Customer Relations Manager: $80,000,
Benefits: Paid time off for full-timers, health insurance for full time workers, retirement plans for
anyone(401K), tuition reimbursement if grade is better than a C and degree relates to business
or pharmacy (12,000 per year at University), vision insurance, dental insurance, stock
ownership once you have worked over 1000 hours per year for one full year, annual bonuses,
monthly coupons for free or reduced-price on item of the month, free flu shot yearly,
bereavement leave, travel reimbursement, maternity leave
Mission: Our mission is to be the premier quality food retailer in the world. To that end we
commit to being:
passionately focused on customer value
intolerant of waste
dedicated to the dignity, value and employment security of our associates
devoted to the highest standards of stewardship for our stockholders and
involved as responsible citizens in our communities.

How does the compensation strategy support or not support the company’s strategies,
goals, and performance metrics?
Publix claims that its associates are their biggest asset. Publix hires individuals who
have high standards, deep desires to make a difference, and a keen sense of teamwork, and
then support their professional growth. According to the data that we have gathered, the
compensation system is set up to encourage employee retention and performance. They have
an initiative where if the employee works over 1000 hours in their first year, they get stock
ownership in the company. They also offer tuition reimbursement if the employee’s grades are
better than a C and degree relates to business or pharmacy (12,000 per year at University).
This, in turn, results in the employees being encouraged to perform both at work and at school
and also increases employee retention due to all the benefits that Publix offers. This goes hand
in hand with the company's mission of being dedicated to dignity, value and employment
security of their associates and devoted to the highest standards of stewardship for the
company’s stockholders.

Walmart:
Base Wages: $9- cashier, $10- stock clerk, $12- pharmacy tech, $11- Deli clerk, $10- baker
clerk, $13- meat clerk, $10- produce clerk, $10- customer service representative, $16-
Customer Support Manager, department managers paid hourly- about $12 up to $16 depending
on department and time
Salaries: assistant store manager: $50,000, store manager: $100,000, customer service
supervisor: $45,000
Benefits: paid sick leave, life insurance, paid holidays/vacations, casual dress atmosphere,
401(k), non-grocery item discount (10%), health insurance, maternity and paternity leave,
performance bonuses
-Rated a lot lower and talked poorly about in reviews compared to Publix
Mission: “We have good momentum in the business, we’re executing our strategy and moving
with speed to win with the customer, who is more connected than ever and embracing tools that
will save them both time and money,”“We’re combining the accessibility of our stores with
eCommerce to provide new and exciting ways for customers to shop. I’m proud of the team we
have in place, the work we have underway and how we are positioned for success in the
future."

How does the compensation strategy support or not support the company’s strategies,
goals, and performance metrics?
Walmart's main goal is to “save people money so they can live better.” This means that
the company is always looking to reduce their costs as much as possible so they can bring
these low prices to customers. This also means that employee compensation has to be limited
to a certain extent. According to the data that we have collected, we see that Walmart’s base
wages and salaries are lower than those of Publix. A store manager at Walmart only makes
$100,000 in comparison to the Publix store manager who makes $124,000. Walmart does not
have that much of a need for customer retention thus they don’t have to focus much on
providing benefits such as Publix that trigger an employee to stay at the company longer. They
offer paid sick leave, life insurance, paid holidays/vacations, and casual dress atmosphere
among other things to encourage their employees at work. Their compensation strategies
support the company’s goals in a way that allows them to provide lower prices to customers, but
at the end of the day, an employee at Publix is better off than an employee at Walmart.

Conclusion:
Both Publix and Walmart have compensation strategies that they follow to support the missions
and goals of the company. Publix focuses more on employee retention and satisfaction which in
turn leads to higher performance at work and better customer service reviews. Walmart focuses
on providing low prices to customers but as a result, has to provide lower compensation for its
employees. We can see that both companies approach the design and implementation of their
compensation system components differently. But after researching all the numbers of both
companies we believe that Publix does a better job of supporting its mission through their
compensation strategies.

References:

https://www.indeed.com/cmp/Publix/salaries?location=US%2FFL

https://www.indeed.com/cmp/Publix/benefits

https://www.payscale.com/research/US/Employer=Walmart.com/Hourly_Rate/Page-6

https://www.payscale.com/research/US/Employer=Walmart.com/Benefits

https://www.payscale.com/research/US/Employer=Walmart.com/Salary

https://www.glassdoor.com/Benefits/Walmart-US-Benefits-EI_IE715.0,7_IL.8,10_IN1.htm

https://www.glassdoor.com/Salary/Walmart-Retail-and-Food-Services-Salaries-
EI_IE715.0,7_DEPT1020.htm

https://corporate.walmart.com/newsroom/2017/10/10/walmart-highlights-progress-on-strategic-
initiatives-and-outlines-plan-to-win-with-customers-and-shareholders-at-its-meeting-for-the-
investment-community

https://corporate.publix.com/careers/support-areas/corporate/departments/human-resources

https://corporate.walmart.com/our-story/our-business