Walmart employee turnover rate 202012/28/2023 Those wage increases can make a big difference in the lives of the working poor. Veteran employees also saw modest pay increases, and the company made sweeping changes in how vacation and sick pay were calculated. In April of that year, it raised starting pay for store workers, some of whom were making the federal minimum wage of $7.25, to at least $9 an hour, and bumped them up to $10 an hour the following year. In 2015, Walmart committed to spending $2.7 billion over two years on increased pay and better training. Just as the company forced competitors to hold the line on wages, increasing its pay is now pressuring rivals to match it. Walmart employs one in 10 US retail workers, and one out of every 100 US private-sector employees. Raising wages can have an even bigger impact. The company also has used its massive buying power to eliminate waste in packaged goods and to drive down the cost of energy-efficient light bulbs, speeding their widespread adoption. ![]() Its enormous size warps the US economy, whether by driving vendors overseas to produce the cheaper goods it demands, steering consumers into strip malls and away from Main Street shops, or pushing down wages for retail workers across the industry as rival chains try to match its low prices.īut Walmart’s size isn’t only a malign force. With 1.5 million employees in the US (and 2.3 million globally) it’s the largest private employer in 19 states. Walmart is the world’s biggest company by revenue, selling more stuff than Apple and General Motors, combined. We’re seeing Walmart’s impact on wages already In the process, McMillon’s insistence that better pay is smart business is potentially reshaping a national debate over income inequality. The news especially shocked Wall Street, where concern about the potential impact on earnings pounded the stock price-more than two years later, Walmart’s shares still haven’t recovered.īut CEO Doug McMillon draws a straight line from the decision to boost pay to the stark need to start countering the threat from Amazon, the online retailer poised to dismantle Walmart’s brick-and-mortar empire. Given the history, many of its critics were surprised in 2015 when Walmart pledged to give more than 1 million of its workers a raise. ![]() It’s not a new strategy, but until now it’s mostly been confined to a few outliers, like Starbucks and Costco, easily dismissed as niche companies with unusually progressive leaders or business models that are hard to replicate.īut now there’s a new company lifting wages to improve its bottom line, and one that’s impossible to ignore.įor decades, Walmart has been among the most vilified corporations in America, if not the world, for its labor policies, its supply chain practices, and its impact on small-town merchants everywhere.
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