Cost-of-living | Walmart make drastic bonus change for 700,000 frontline workers

Walmart make drastic bonus change for 700,000 frontline workers

Walmart announced a significant change to its bonus structure, aiming to boost wages for approximately 700,000 of its hourly store workers, including those in its pharmacy and Vision Center stores.

This move, inspired by feedback from employees, is part of an annual bonus program, Walmart US CEO, John Furner, revealed.

During a call with reporters, Furner emphasized the importance of maintaining competitive base wages, especially ahead of the company’s annual shareholder meeting on June 5.

The new bonus initiative will be available to both part-time and full-time associates, provided they have been with the company for at least a year and their stores meet certain performance targets.

Walmart employs around 1.7 million workers across the United States, the majority of whom work in its 5,000 stores.

Despite its minimum hourly wage starting at $14, which is lower than the $15 starting wage at competitors Amazon and Target, Walmart is striving to improve overall compensation for its staff.

Alongside the bonus program, Walmart has already increased the annual average salary and bonus for its US store managers as of February 1.
This comes as the US labor market remains tight, with the latest Labor Department report indicating slower-than-expected job growth in April and a decrease in annual wage increases below four per cent for the first time in nearly three years.

Furner noted a decrease in store worker turnover, attributing it in part to the improved compensation packages.

Additionally, Walmart has introduced an 'Associate to Technician' certification program designed to help workers transition into higher-paying technical roles in areas such as refrigeration and cooling maintenance, facilities maintenance, and automation.

Walmart's Chief Talent Officer, Lo Stomski, highlighted the significance of this program, aiming to address a projected demand for around 2,000 technicians within the next two years, up from the current 450.

These technician roles offer wages ranging from $19 to $45 an hour and ‘present substantial career advancement opportunities’.

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