Compensation and Benefits - Research Paper Example

Compensation and Benefits A case study of Best Buy INTRODUCTION Best Buy offers very attractive compensation and benefits to its employees. Rewards strategy and inspired workplace is the foundation of its compensation and benefits policy framework. It includes salary or regular pay-check, options to do work at optimal places, options to work at mutually convenient time, opportunities for professional-development, health benefits and family benefits program. The inspired workplace is related to the culture and diversity programs (Best Buy 2011)Appendix 1 shows the general policy framework of Best Buy compensation and benefits policy.

Paychecks are based on the number of hours worked by the employee after deduction of applicable taxes. Salary ranges depend upon the position and place of work of the employee. The places where employees can work are global as Best Buy has hundreds of stores in North America, European Union and Asia (Best Buy 2011)Appendix 2 shows that in North America, Best Buy has 1099 stores in USA, 71 stores in Canada and 6 stores in Mexico. Best Buy mobile has 177 stores in USA and 10 stores in Canada. Pacific Sales has 35 stores in USA.

Magnolia has 6 stores in USA and Future Shop has 146 stores in Canada. Similarly there are several stores in UK, Ireland, Spain, France, Germany, Netherlands, Portugal, Sweden, and Belgium in European Union. China has 166 stores. The quantum and size of stores give ample opportunities of employment for people all around the world (Best Buy 2011)The professional-development program provides learning opportunities through its award winning website “LearningLounge”. Appendix 3 shows that 93% of the retail employees benefited from it by spending more than one million hours participating in over 4.

3 million courses and achieving 406,000 certifications. Similarly employees received nearly 10 million dollars in tuition reimbursement (Best Buy 2011)Programs for retirement, paid-time off and health care are developed based on the world wide places where employees are employed. Through enterprise-wise surveys, continuous efforts are made to improve the Employee Satisfaction Index (ESI) by way of taking measures based on suggestions given by the employees (Best Buy 2011)The inspired work place offers clear communication amongst the employees, vendors and stake holders complying with the requirements of law.

The ethical standards and values are enforced throughout the company after clear communication. The website “Ethics at Best Buy” provides opportunities to customers, community members and employees to discuss about the Best Buy ethics (Best Buy 2011)The U.S. Best Buy Children’s Foundation provided 365 grants amounting to $ 2.0 million for programs that created opportunities for youth. The number of programs funded by the Best Buy includes Scholarship Program for 9-12 grades student, Exchange Program of teens, programs of GRAMMY Foundations for music education and awards for outstanding schools.

Appendix 4 shows that a total amount of US $ 26.1 million was given in donations and other community investments (Best Buy 2011)The voluntary programs of Best Buy employees include mentoring of children, cleaning parks, building homes and service to homeless. Appendix 5 shows that 160,000 hours were volunteered by 26,000 US Best Buy employees through Tag Team Awards that give 3.2 million US dollars to nonprofits organization. Programs such as Five Star in China that helps kids and their families and GeekSquad Summer Academy (GSSA) programs for teaching technology to kids made great impact last year (Best Buy 2011)Appendix 6 shows that more than one hundred thousand employees work full time or part-time in globally located stores and offices from North America to China.

The magnanimity of the enterprise, the number of employees and geographically spread locations create many challenges for the organization. These challenges include regional laws, culture, political stability, regulatory body’s authorities and local environment. The continuous monitoring through surveys and other business tools and strict enforcement of ethical standards and values are some of the important strategies beside the Reward strategy that are implemented that results in the outstanding performance of Best Buy.

ReferencesBest Buy, (2011). Our World Connected, Fiscal 2011 Sustainability Report, Best Buy, U.K. Retrieved from http://sustainability.bby.com/wp-content/themes/bby/inc/report-2011/BBY%20Fiscal%202011%20Sustainability%20Report.pdfBest Buy, (2011). Benefits well beyond a paycheck, Best Buy, Retrieved from http://www.bestbuy-jobs.com/content/benefits/Best Buy, (2011). What does it feel like to work at Best Buy? Best Buy, Retrieved from http://www.bestbuy-jobs.com/content/culture/Best Buy, (2011).

Community Relations, Best Buy, Retrieved from http://www.bestbuy-communityrelations.com/Appendix 1: Best Buy compensation and benefits policy framework (Best Buy 2011)Appendix 2: Geographical locations of Best Buy stores (Best Buy 2011)Appendix 3: Development programs through LearningLounge (Best Buy 2011)Appendix 4: Donations and Grants by Best Buy (Best Buy 2011)Appendix 5: Volunteering by Best Buy Employees (Best Buy 2011)Appendix 6: Employee count of people working globally (Best Buy 2011)