Walmart Managers Set To Get Huge Pay Hike From Next Month: Check Details
Walmart is set to significantly boost the pay of its store managers from next month. The retail giant announced last week that US store managers will see the average salary increase from $117,000 to $128,000 a year. There will also be a bonus of up to 200% base pay for those who meet or exceed store targets and profits.
Why is Walmart Raising Pay?
As per Walmart’s official release, the adjustments to the salary and the new bonus structure come as part of Walmart's strategy to invest in its front-line hourly associates. The average hourly pay, which was $17.50 in January of the previous year, is expected to exceed $18 with this change, as per reports.
“We see an investment in you as an investment in our culture, our core values, and in the day-to-day experience of every associate in every store. Investing in you is an investment in our future,” the official release to managers stated.
With at least one Walmart located within 10 miles of 90% of the population, the retail giant has become a desirable workplace for many Americans. Due to its convenience and outstanding brand recognition, the company is thought to be a stable place for employment and advancement. Walmart CEO Doug McMillon also rose through the ranks from his first job of unloading trucks at a distribution center.
"Most of you — approximately 75% of our field management teams — began your Walmart careers in the hourly ranks. So did I," Cedric Clark, head of store operations for Walmart US, said in a note to managers that was posted on Walmart's corporate website.
Further, boosting pay could give a lift to the company's recruiting and retention efforts as well. Previously, applicant interest soared in UPS after the Teamsters union negotiated a pay package for delivery drivers worth about $170,000. These jobs have potentially become the only way to earn a six-figure income for people with no college degrees.
Who Does The Offer Extend To?
The new salary and bonus structure extends to all US store managers. The offer provides the employees with an opportunity to earn a hefty annual bonus of 200 percent. The new salary changes will take effect on February 1, Walmart told Business Insider.
Current Situation of Walmart Employees
As of 2024, Walmart employs about 1.6 million people in the US and operates over 4,600 retail locations, as per the Insider report. In the massive employee base, the store managers sit at the lowest end of the salary range. However, with the new changes, they are set to see the largest increases, jumping from $65,000 to $90,000, while the top end will remain at $170,000, the company told Insider.
Further, the existing bonus of 150% will also increase to put more focus on store profitability in addition to top-line sales. The company further said that these changes follow previous starting wage increases that are set to bring the US average hourly wage to more than $18.