Walmart (WMT) has announced it will pay annual bonuses to its U.S. hourly store workers for the first time, a move expected to benefit 700,000 front-line employees, including those in its pharmacy and Vision Center stores. Both part-time and full-time associates will be eligible for the bonuses, which are based on store performance targets. This initiative, driven by feedback from employees, aims to make Walmart more competitive in base wages. CEO John Furner emphasized the importance of staying competitive as the company prepares for its annual shareholder meeting.
Walmart employs about 1.7 million U.S. workers, most of whom staff its 5,000 stores. The retailer's minimum hourly wage starts at $14, which is less than the $15 starting wage at competitors Amazon (AMZN) and Target (TGT). Despite this, Walmart has raised the annual average salary and bonus for its U.S. store managers as of February 1. The U.S. labor market remains tight, with job growth slowing and wage increases falling below 4% for the first time in nearly three years. Walmart has seen a decrease in store worker turnover, a positive sign amid these challenging conditions.
Market Overview:- Walmart to pay bonuses to U.S. hourly store workers for the first time.
- Both part-time and full-time associates will be eligible for the bonus program.
- The move aims to make Walmart more competitive in base wages.
- Walmart employs about 1.7 million U.S. workers, with a minimum hourly wage of $14.
- The U.S. labor market remains tight, with slowing job growth and wage increases.
- Walmart has seen a decrease in store worker turnover.
- Walmart's 'Associate to Technician' program aims to address technician shortages.
- The program will help workers transition to higher-paying roles.
- These technician roles offer wages between $19 and $45 an hour.
Walmart has also introduced an 'Associate to Technician' certification program to help workers transition to higher-paying roles in areas like refrigeration, facilities maintenance, and automation. This initiative aims to bridge the gap between the current technician headcount of about 450 and the projected demand for 2,000 technicians in the next two years. Chief Talent Officer Lo Stomski highlighted that these jobs, which pay between $19 and $45 an hour, offer significant career-building opportunities. The program is part of Walmart’s broader effort to invest in its workforce and improve employee retention.
