Benchmark - Global HRM Presentation

Staffing and Compensation Plan

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Staffing and Compensation Plan

Walgreens continues to command a huge market share in the industries where it operates. To continue keeping abreast of other competitors, the company must develop a robust staffing and compensation plan geared towards attracting and retaining talented employees. Such a plan should reflect the desires of employees at the management/executive level as well as those on the subordinate level. In order to be successful, Walgreens must address a number of staffing needs that warrant immediate attention. The company also needs to rethink its compensation package and benefits offered to employees in order to increase the motivation and job commitment (Bailey, Mankin, Kelliher, & Garavan, 2014). The purpose of this report is to identify some staffing needs at Walgreens and propose a compensation plan that can help the company to sustain its competitive advantage.

Staffing Needs

Walgreens is currently short of certified pharmacy technicians particularly in the brick-and-mortar retail stores. These professionals contribute the success of the company in various ways. They work directly under the pharmacist’s supervision to deliver excellent customer service and dispense quality patient care (Bacon, 2014). They also assist pharmacists in accomplishing various responsibilities that include filling prescriptions, stocking shelves, inventory control, bookkeeping tasks as well as administrative tasks. In most stores, the company also lacks experienced business systems analysts who are responsible for infusing technological solutions and aligning IT with organizational goals to solve business-related problems.

Hiring professionals qualified in the abovementioned fields and providing them with periodic in-the-job training can go a long way in addressing the staffing needs of the company (Massachusetts Rehabilitation Commission, 2016). In this undertaking, the company should prioritize hiring a diversified workforce. Currently, Walgreens disproportionately hires non-Hispanic whites or Caucasians in a majority of its top leadership positions. Women executives are also few in the company’s management team (Bacon, 2014). In the contemporary world, the society is increasingly becoming multicultural in aspects such as race, gender, socioeconomic status, religious orientation, physical ability, and immigration status among many other personal attributes. Hiring diverse employees to meet the staffing needs can go a long way in fostering a culture of inclusivity within the organization (Bailey et al., 2014).

Compensation Plan for the Organization

The compensation plan for Walgreens will vary depending on the seniority and position held by the employees. It will reflect compensation for directors, senior managers, and other employees at the firm. Phillips and Gully (2015) contend that the overall objectives of the compensation packages should include attracting and retaining talented employees including executives, rewarding outstanding performance by the employees, and aligning or linking the interests of employees to the overall strategic goals of the company. For executive compensation, the overall plan will include a base salary of $1,295,833 yearly, an annual performance bonus of $1,150,052 and long-term incentives of $8,918,921. Key elements of the executive compensation program also encompass long-term equity incentives that comprise of 40% stock options, 35% performance shares, and 25% restricted stock units.

Compensation is also an important consideration for lower level employees including certified pharmacy technicians, on-site pharmacists, pharmacy cashiers, business system analysts, and distribution centers staffs among other employees similarly enjoy a lucrative compensation package. For many of these employees, the hourly pay will range between $12-23 depending on factors such as years of experience, position held, and shift schedules (Phillips & Gully, 2015). When factoring in additional compensation and bonuses, these employees can expect to make a total pay of $35,000-45,000 annually. They are also eligible for other incentives including stock options. Employees who work for at least 30 hours per week are additionally eligible for paid time off, using funds slashed from executive compensation to cater for the remuneration of subordinates (Schencker, 2018).

Description of Benefits Offered

Providing an assortment of benefits is critical for improving employee morale and reducing turnover intentions (Bailey et al., 2014). Some of the most notable benefits provided to employees include paid time off (PTO) including holiday and disability PTO, profit sharing plan through the 401K packages, employee stock-purchase plan, voluntary personal accident and life insurance, dental, health, and vision insurance, and company paid health insurance. Other benefits offered by Walgreens based on factors such as position, team member level, and length of employment include flexible spending accounts (FSA), employee purchase program, employee discount, child care, transportation benefits, and free flu shots/travel consultation (Walgreens, 2019). The company additionally offers and aspires to continue offering on-the-job training and other professional development opportunities for all employees at the organization.

Conclusion

Staffing and compensation are important components that all organization must take into account when formulating their strategic plans. Even though Walgreens has continued to register exponential growth and increased revenues over the decades, it nevertheless has some staffing needs that it should address in order to cement its position as industry leader. Moreover, the company needs to come up with a robust compensation plan and a responsive benefits program, as all of these contribute directly to improving the morale, commitment, and satisfaction of employees.

References

Bacon, J. (2014). America's corner store : Walgreens' prescription for success (3 ed.). Hoboken, N.J.: Wiley.

Bailey, C., Mankin, D., Kelliher, C., & Garavan, T. (2014). Strategic human resource management (3 ed.). Oxford: Oxford University Press.

Massachusetts Rehabilitation Commission. (2016, July). Meeting the staffing needs of your business. Retrieved from https://www.mass.gov/files/documents/2016/07/py/mrc-employer-brochure.pdf

Phillips, J. M., & Gully, S. M. (2015). Strategic staffing (3 ed.). London: Pearson Education.

Schencker, L. (2018, November 18). Walgreens cuts manager bonuses following employee benefit changes. Chicago Tribune. Retrieved from https://www.chicagotribune.com/business/ct-biz-walgreens-cuts-bonuses-1110-story.html.

Walgreens. (2019). Benefits & Total Health. Retrieved from https://jobs.walgreens.com/benefits