Walmart launches bonus program for nearly 700,000 US hourly employees! In a strategic decision aimed at valuing and retaining its employees, retail giant Walmart announced this Wednesday that it will grant bonuses to its hourly workers in the United States, including those employed in its pharmacies and opticians. The measure has the potential to benefit around 700,000 of the company’s frontline employees.
As detailed by John Furner, CEO of Walmart in the US, during a conference with journalists, both part-time and full-time associates will be able to receive an annual bonus of up to US$1,000. The initiative comes as a response to feedback received from workers at the chain’s stores.
This new bonus policy follows the company’s announcement in January that it redesigned the bonus system for its US store managers, allowing them to achieve an annual bonus that can reach up to 200% of their salaries.
“It is essential to be competitive in relation to base salaries”, stated Furner, highlighting the importance of the measure for the company. The bonus announcement came just hours before the company’s annual meeting, where investors voted on seven shareholder proposals, including one that calls on Walmart to establish a compensation policy that guarantees workers the minimum income needed to support their families.
To be eligible for the bonus, an hourly worker must have been with the company for at least a year and the bonus is calculated based on achieving certain store performance goals, Furner added.
Walmart is one of the largest employers in the United States, with around 1.6 million workers, the majority of whom work in its 4,700 stores across the country.
Criticism emerged from the activist group The Shareholder Commons, highlighting that the wages offered by Walmart are significantly below what is necessary for a dignified life, in addition to not addressing the economic damage resulting from this practice.
The proposal also criticized the fact that Walmart’s CEO, Doug McMillon, earns 933 times more than the average salary of the company’s employees. It is worth noting that the minimum hourly wage offered by the company starts at US$14, below the starting salary of US$15 offered by Amazon.com and Target.
Despite the board’s recommendation that shareholders vote against the aforementioned proposal, it received around 4.4% of the votes at Wednesday’s meeting.
The U.S. job market remains challenging, with recent reports from the Department of Labor indicating a slowdown in job growth in April and annual wage increases below 4% for the first time in nearly three years.
Additionally, aiming to promote the professional development of its employees, Walmart launched an Associate to Technician certification program to facilitate the transition to better paid technical roles in areas such as refrigeration maintenance and automation.
“These roles offer salaries between $19 and $45 per hour and represent opportunities to build a meaningful career,” highlighted Lo Stomski, head of talent at Walmart.
This set of measures reinforces Walmart’s commitment to its employees and highlights the importance of strategies focused on the well-being and professional development of workers in the current corporate scenario.
