WALGREEN’S PROFIT-SHARING

Walgreen’s Profit Sharing
Author
Institutional Affiliation

Walgreen’s Profit Sharing
Walgreen Co is the second largest pharmaceutical company in the USA, with 8175 stores in the whole country. With a worth of $117 billion, it is easy to see how profit sharing in the company plays a huge role in providing retirement plans for its employees. The retirement plan is considered one of the best around and offers both a profit sharing and 401kfeature. The program has a net value of $9 billion, with nearly 257000 participants contributing to the scheme (“Walgreen Company 401k Rating by BrightScope”, 2018).This means that almost every participant has a balance of $68000 if they use the scheme for their retirement plans.
There are many benefits in the company, but none as significant as the 401k plan offered. An insurance cover is provided as a good option, albeit it gives benefits based on the number of hours someone has worked (“Benefits at Walgreens,” 2018) The profit sharing plan only focuses on the employment status of an individual and the amount of money they should contribute annually. The 401kplan is also crucial in helping people retiring to buy the company’s stocks, another benefit provided. With gains not being taxed once someone is retired and withdrawing the money, the company offers options for employees to buy shares and become part of the business for life. The profit sharing plan also helps employees in a big way since the company offers to contribute a certain amount to them every year (Tang et al, 2010).

This contribution usually leads to a certain amount being gained the next year, and someone working in the company for long will have additional perks every year on the plan. Despite the increment being a small value, its overall effect in the long term makes the profit sharing plan by Walgreens an excellent tool for ensuring employee satisfaction in the workplace.
 
References
Benefits at WALGREENS. (2018). Jobs.walgreens.com. Retrieved 6 February 2018, from https://jobs.walgreens.com/benefits
Tang, N., Mitchell, O. S., Mottola, G. R., &Utkus, S. P. (2010). The efficiency of sponsor and participant portfolio choices in 401 (k) plans. Journal of Public Economics, 94(11-12), 1073-1085.
Walgreen Company 401k Rating by BrightScope. (2018). Brightscope.com. Retrieved 6 February 2018, from https://www.brightscope.com/401k-rating/164814/Walgreen-Company/167347/Walgreen-Profit-Sharing-Retirement-Plan/