Walmart Inc. is raising the starting base pay for store managers, while redesigning its bonus plan that will put more of an emphasis on profits for these leaders.
The moves, announced Thursday, will be effective Feb. 1. They come as the nation’s largest retailer and largest private employer seeks to retain qualified managers and make clear to hourly workers that there’s a path for upward mobility in a still highly competitive labor market. Roughly 75% of its store management started out as hourly workers, Walmart said.
Walmart said that the store managers’ new starting annual base wage ranges will be from $90,000 to $170,000. Previously, the range was from $65,000 to $170,000. That means that the average base pay for store leaders will go to $128,000 from $117,00, according to Cedric Clark, executive vice president of store operations at Walmart’s U.S. division.
The Bentonville, Arkansas-based retailer, which has more than 4,700 namesake stores in the U.S., is also redesigning its store manager bonus program, which had placed a bigger emphasis on sales over profits. With the new bonus plan, profits will play a bigger role in calculating manager’s annual bonus. If the manager hits all targets, the bonus could now be as much as double the leader’s base salary, said Clark, who started out as an hourly worker. Previously, it was up to one and half times the manager’s base salary.
“They’re at the forefront of everything we do,” he said. “We’re trying to create opportunities where they can continue to aspire.”
Clark also noted that driving profits to that store allows the company to continue to invest back in price, back to its workers.
Meanwhile, Walmart also said that average wages for hourly workers would exceed $18, up from $17.50. The increase is due to Walmart introducing some higher-paying hourly roles in its Auto Care Centers last year, among other changes, the company said.
Walmart announced in January 2023 that U.S. workers would getpay raisesthe following month, increasing starting wages to between $14 and $19 an hour. Starting wages had previously ranged between $12 and $18 an hour, depending on location.
Anne D’Innocenzio reports for the Associated Press.
Roughly 75% of its store management started out as hourly workers
hourly workers
An hourly worker or hourly employee is an employee paid an hourly wage for their services, as opposed to a fixed salary. Hourly workers may often be found in service and manufacturing occupations, but are common across a variety of fields.
, Walmart said. Walmart said that the store managers' new starting annual base wage ranges will be from $90,000 to $170,000. Previously, the range was from $65,000 to $170,000.
1. Base pay for Walmart store managers will increase from $117,000 to $128,000 a year, and depending on a store's profit, annual bonuses could reach up to 200% of a store manager's salary.
We're increasing our commitment to you with an investment in store manager wages and a redesigned bonus program. As you know, your pay is made up of two parts: base pay and annual bonus.
Walmart lays off hundreds of employees and requires others to relocate. Shoppers exit a Walmart store, on Feb. 21, 2024, in Englewood, Colo. Walmart on Tuesday announced layoffs affecting several hundred jobs at the retail giant's campus offices.
The retail giant announced a new average annual salary of $128,000 this month. High-performing Walmart managers now have the ability to earn more than $400,000 a year after the retail giant announced it is offering the ability for some managers to earn $20,000 worth of stock grants starting in April.
Starting in April, all US store managers will receive as much as $20,000 in Walmart stock every year, as the world's largest retailer seeks to attract and retain staff.
This year, US hourly and OTR driver associates will be eligible to receive a holiday bonus payout, depending on the length of time they've been with Walmart and whether they're full-time or part-time. The bonus payout will appear on eligible associates' regular paychecks on Dec. 7, 2023.
The estimated total pay range for a Team Leader at Walmart is $40K–$54K per year, which includes base salary and additional pay. The average Team Leader base salary at Walmart is $43K per year. The average additional pay is $3K per year, which could include cash bonus, stock, commission, profit sharing or tips.
The Biden Administration has worked to reverse these trends, providing federal employees a 4.6 percent pay raise in 2023 and a 5.2 percent raise in 2024. Nonetheless, federal employee pay increases have failed to keep pace with rising labor and living costs.
According to Walmart's standard policy, you will get your paycheck on a biweekly basis (an update from the weekly basis before 2023). However, once you subscribe to Instapay, a feature from the “Even” app, it is possible to request a partial advance payment once a week!
You can start using the PTO you earn beginning on your 90th day with Walmart, and can use PTO as soon as you earn it. Your paid time off is divided into two buckets: regular PTO and Protected PTO. Regular full-time and part-time associates receive both types. Temporary associates only receive Protected PTO.
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