A blog for graduate business students taking ECON 610 or similar courses at VCU. The opinions here are mine. No one at VCU reviews or approves what I post.
Thursday, September 9, 2021
Walmart to End Quarterly Bonuses for Store Workers
This report (WSJ, Sep 2021) raises an important question: "Which compensation scheme better aligns interests or employees and owners, quarterly bonuses based on store performance or higher wages?"
A higher wage will attract better talent and provide more incentive for the store employees to perform well. Tying part of their pay to store performance, when there are so many variables outside of their control that will affect performance, is not a good motivator.
A higher wage will attract better talent and provide more incentive for the store employees to perform well. Tying part of their pay to store performance, when there are so many variables outside of their control that will affect performance, is not a good motivator.
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