IntroductionMany companies consider compensation to be the main reason why people decide to work for a company. Walmart is one of the largest employers that provide compensation packages to their employees, it is helpful for them to understand the importance of compensation. This document will discuss the most appropriate compensation plan for this company. The document will also cover internal and market-consistent compensation systems, while evaluating the current compensation structure and recognition of employee contributions. Additionally, the document will recommend two ways to improve discretionary benefits while evaluating employee-sponsored retirement plans and health insurance program provided by the company. Compensation can allow some companies to motivate and satisfy employees while remaining competitive in the marketplace. Existing Compensation Plan Walmart Stores Incorporated is one of the largest retail stores in the world. It is very appropriate that Walmart has a compensation package for its employees. The company offers jobs for people of all levels, starting with an entry level position that allows an employee to move up the corporate ladder. WalMart positions range from cashier to manager, corporate positions and beyond. In addition to the location, the average full-time wage for its employees is $8.81 per hour, an employee can work full-time or part-time. Store managers earn between $50,000 and $170,000 per year, and the company promotes at least 160,000 people annually (WalMart, 2014). The company offers benefits ranging from health plans, 401k plans, educational assistance, retirement plans, and training. Walmart employees are offered cash bonus opportunities, the chance to advance within the company,… middle of the paper… is its promise. However, the company still faces challenges with compensation packages. Walmart employees continue to complain about poor compensation packages that have caused financial hardship for some employees. The challenges of maintaining the lowest everyday price are benefits for consumers, which could obviously have contributed to domestic demand. In these economic times Walmart faces many challenges to stay on top as a low price leader. Competitors have also challenged discount retailers. Companies like Target, Dollar General and Dollar Store continue to cut prices to lure families away from Walmart. Therefore, as Walmart has continued to expand its business, its core strategy has shaped the retailer's growth. This company just started with the simple philosophy “Give people more, saving money and a better life.