NEW YORK — Walmart is making a big move by increasing the average salary of its store managers to $128,000 a year. This significant raise comes as the retail giant aims to attract and retain more workers, reduce turnover rates, and address labor organizing efforts at big box stores.
The company’s decision to boost the average pay of its store managers by just over 9% is a bold step in the right direction. With the new pay structure, store managers will now have a pay range between $90,000 and $170,000, based on the store format they oversee.
But that’s not all. Walmart is also revamping the managers’ bonus program to focus more on store profits, which will now play a bigger role in calculating their bonuses, in addition to sales. According to Walmart, if managers hit all targets, their bonus could now be up to 200% of their base salary.
Additionally, Walmart’s U.S. average hourly wage is set to exceed $18, following last year’s increase in starting pay for hourly associates and upcoming annual raises. This investment in its workforce is a testament to Walmart’s commitment to its employees.
While Walmart is making significant strides in compensating its managers, it’s important to note that the company also made adjustments to the starting pay for some new hires in response to the cooling labor market. This move reflects the dynamic nature of the retail industry and the need to adapt to changing market conditions.
As Walmart takes these steps to enhance its workforce, it’s worth mentioning that the company employs about 1.6 million workers in the U.S. and operates close to 5,000 stores nationwide. The retailer also highlighted that as many as 75% of its managers began their Walmart careers as hourly workers, emphasizing the opportunities for growth within the company.
Walmart’s decision to increase the average salary of its store managers is a strategic move that aligns with the company’s efforts to remain competitive in the retail industry. By prioritizing its workforce and adapting to market changes, Walmart is positioning itself for continued success in the future.
Disagree
Walmart’s decision to increase the average pay for store managers after a decade seems like a desperate attempt to improve their tarnished reputation. This sudden change might not fix the underlying issues that the company needs to address, such as poor working conditions and low wages for other employees.