Business Problem Paper

1372 Words6 Pages
Running Head: BUSINESS PROBLEM PAPER AND PRESENTATION Business Problem Paper and Presentation University of Phoenix MBA 510 - Managerial Decision Making Professor Daniel A. Puente University of Phoenix Faculty Due April 28, 2008 Business Problem Paper and Presentation In the following pages, discussion will take place on the Wal-Mart Corporation, more specifically issues that have arisen with employee retention within the company. This work will illustrate both statistically and comprehensively the problems that Wal-Mart is facing with employee retention, including a list of optimal solutions for the problem. Dependent and independent variable will be identified, the null and alternative hypothesis, primary and secondary…show more content…
318). Wal-Mart employees receive wages that are lower than the average for the industry. In 2004, associates n California earned an average of 31% less than the industry average. Wal-Mart employees received an average of $9.70 per hour compared to $14.01 at large retailers (Dube & Jacobs, 2004). Such low wages cause Wal-Mart associates to receive government assistance. The families of Wal-Mart employees use an estimate 38% more non-healthcare related public assistance than the average of families for large retailers (Dube & Jacobs, 2004). After reviewing numbers as drastic as these one can easily understand why Wal-Mart employees would leave Wal-Mart to pursue better opportunities elsewhere. On top of low wages Wal-Mart employees pay an exuberant amount for basic healthcare. In January 2006 only 46% of Wal-Mart’s associates were covered by healthcare (Wal-Mart Watch, 2005). Wal-Mart employees also have to wait long periods of time to qualify for healthcare. Full-time employees must wait 6 months, and part-time employees must wait for one year, before they qualify for benefits (Wal-Mart Watch, 2005). Not only do employees have to wait a long time to qualify for benefits they pay 41% of the insurance premium costs (Wal-Mart Watch, 2005). The combination of low wages and high priced healthcare is the reason that so many of its associates receive public health assistance. Research has shown that Wal-Mart employees across 24 states some form of
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