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Walmart announced a new bonus program designed to raise wages for approximately 700,000 of its hourly workers across the United States.
This new initiative includes employees at pharmacy and Vision Center stores and shows how the largest employer in the U.S. is addressing employee compensation and performance rewards across its vast network of stores.
Reuters reports that on Wednesday, just hours before its annual general meeting, Walmart revealed that both part-time and full-time associates could earn up to $1,000 annually if their stores meet specific performance targets.
The new bonus plan is a direct response to feedback from store workers and arrives amidst broader conversations about fair compensation and living wages in the retail industry.
At Walmart’s annual meeting, investors are slated to vote on a proposal advocating for a compensation policy that ensures workers can meet their family’s basic needs.
Despite this move, some critics argue that wages still fall short of what is necessary to support a living wage. The proposal has also raised questions about CEO Doug McMillon’s salary, which is reported to be 933 times more than the company’s median employee.
Walmart has also introduced its “Associate to Technician” pipeline program. This initiative aims to help store workers transition to higher-paying technician roles in areas such as refrigeration and cooling maintenance.
According to Walmart’s announcement, “With the country facing a shortage of skilled trade workers, we’re creating pathways for our own associates to fill these critical jobs in our stores and supply chain facilities. We’re piloting a new Associate to Technician program with 100 associates in the Dallas-Fort Worth area that will help hourly store and supply chain associates move into facilities maintenance, refrigeration and HVAC, reliability and automation technician roles. These jobs make between $19 and $45 an hour and offer opportunities to build a meaningful career while meeting a business need for the company. This program is part of our Walmart Academy, one of the largest training ecosystems in the country.”
By incorporating worker feedback into its compensation strategy, Walmart is not only working to improve its front-line workforce’s earnings but also aiming to reduce turnover and build a more stable and motivated team.
As the U.S. labor market remains tight, with the latest reports showing slowed job growth and below-expected wage increases, such initiatives could play a big role in attracting and retaining talent. While this bonus program is a step in the right direction, there remains substantial discourse around the adequacy and fairness of wages in the retail sector.
