Walmart Raises Pay And Adds New Tech Positions

Suddenly Walmart
WMT
is raising wages for store associates and is adding new tech positions. The move, initiated by Walmart’s US president and CEO John Furner, is an effort to give associates an improvement in the quality of their lives.

At the same time, there is also an effort to elevate the positions in the Auto Care Center (ACC); elevating the ACC tech-led positions to a higher pay level reflects the special skills that are required in those roles, especially with new electric cars on the horizon. Furner said that “we are proud to continue investing in Walmart’s legacy by introducing new job opportunities and raising pay. No matter where you are in your journey, getting your start here can open doors – the first step into jobs that become careers and better lives.” The company said that the average worker will earn more than $17.50 an hour.

The current wage at Walmart is $12.00 to 18.00 an hour and will rise to $14.00 to $19.00 an hour on March 2, 2023. It should be noted that certain states already have a minimum wage of $16.00 an hour, including Connecticut, California, Massachusetts, and Washington. New York City, Long Island, and Westchester County in New York state have a minimum of $15.00. It was also noted in the Sourcing Journal that Amazon
AMZN
and Target
TGT
have a minimum rate of $15.00 an hour, and Costco bumped its minimum to $17.00 as early as October 2021. On the other hand, Dollar General
DG
has employees at the $7.00 to $12.00 starting range according to Payscale.com. About 20 states do not have any minimum wage laws, and the Federal minimum wage law right now is only $7.25. In this competitive frame, Walmart will be very well positioned.

Walmart is going to have a number of lay-offs because of slower business as we fight inflation, so giving raises at this time is a boost to the morale of associates who remain. It is a recognition of the impact the inflation rate has racked on all workers since the pandemic started. At the same time, Walmart has tried to keep retail prices as low as possible, with special value promotions every week. By giving raises to associates now, Walmart hopes to retain a strong selling staff that will be able to keep sales growing.

Is Walmart optimistic that it can ride out a recession with dedicated associates who will sell one extra item to customers they serve? As the largest retailer in the US, the company has a lot of power through its marketing of its everyday low price policy. Encouraging associates to sell more, incentivizing them with raises and staff promotions, and creating a greater customer base with the Walmart+ program are encouraging steps. Customers are likely to shop Walmart first for price and value and keep coming back if the service is good.

POSTSCRIPT: I believe in John Furner’s leadership. Raising the pay of 360,000 associates is a bold move at a time when many tech companies are furloughing thousands of their loyal employees. Today, Walmart has wanted brands and the ability to make shopping a pleasant experience. John Furner is leading the charge to a stronger future.