Popular retail chain, Walmart has kicked off the year by making all sorts of moves — some well received, others not so much. The latest in the company’s plan of action for the year is pay raises. Is there more to the matter than meets the eye? Is this a strategic move to remain relevant in an industry where the employees of competitors have to consider striking for better pay? Will the average employee benefit from these pay raises or is it reserved only for those in the top?
What kind of raise are we talking about?
In a statement made to Axios, the retailer announced that it is increasing pay, bonus and stock awards for market managers that can bring their total annual compensation to more than $600,000. The decision to implement these raises comes as an attempt to retain and reward employees.
As of February 1, the nation’s largest private employer and retailer will be increasing the starting base pay for the market manager position from $130,000 to $160,000, according to Anne Hatfield, spokesperson for the retailer. Market managers will also enjoy an increased annual stock grant which will go up from $75, 000 to $100, 000. Hatfield also noted that a market manager’s bonus potential increases from up to 90% of their base salary to up to 100%.
Why focus these raises on market managers specifically?
The retailer employs more than 400 market managers nationwide and it is the responsibility of each manager to oversee around a dozen stores. In a statement made to Axios, the retail chain shared that “this role — which oversees multiple stores — is key for our business and for serving our customers however they shop”.
When the new raises come into effect, market managers who earn their full bonuses will be going home with between $420, 000 and $600,000.
Who else will be a recipient of a raise?
The company has highlighted that “this is the latest in a series of investments in hourly and salaried roles across Walmart U.S”.
In the previous year, the retailer had made the decision to increase pay for its store managers as well. In addition, a new bonus program was launched both for store managers and for store hourly associates. The new program would mean store managers will now get a bonus of up to 200% of their base salary. Another big change for the employees of the company included stocked grants being given to store managers for the first time.
Spokesperson, Anne Hatfield also noted that market managers and store managers who are getting bonuses will get their payout with the new, higher percentages some time in March.
Where does this leave floor workers?
Being a big box retail store, Walmart would simply not be able to function without its “lower-level” floor employees and yet it seems no mention has been made regarding any type of wage increase for them. Not to mention that the retailer is already currently under fire for its decision to discontinue diversity, equity, and inclusion policies and as a result is ending several of its initiatives related to the policy.
Costco, competitor to Walmart, is currently facing a potential worker strike amidst contract negotiations. Employees of the warehouse chain are demanding better working conditions and higher pay. They are backed by worker union, Teamsters, who has voted to go ahead with a strike if demands are not met by January 31, when their current contracts end.
This raises questions about Walmart’s true intentions behind these raises. This is not to take away from the hard work put in by the market managers, but it does seem imperative to note that big corporations do have an inclination to favor upper management over regular employees. Let’s hope the coming days will bring good news for floor workers as well.