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Walmart is going to be increasing their starting wage to $9.00 and will climb to a minimum of $10 for current hourly employees in February of 2016. In my opinion they are betting that higher wages will do three things that will ultimately make for a much better customer experience. The two biggest complaints I hear is that Walmart employees don’t know the policies and they are not nice to the customers.Higher wages should attract a higher caliber of employee, it should also really help in the retention department.

I am not positive on this number but I believe that the average turnover rate in a store is 50%+ in a twelve month period. There is no possible way to keep employees trained properly with that kind of a revolving door. A higher wage will make it much tougher for someone to just go get a new job and should also make it a lot more pleasant while they are working.

New US employees will start at $9.00 per hour and move up to $10 after a 6 month training program. I realize that no one is getting rich off of $10 per hour but that is your minimum wage within 6 months of employment. The goal is to get the average wage of an hourly employee to $13 by April of this year!

For those of you that are not aware there are hourly and salaried employees at Walmart. A salaried member of management is who you want to talk to if you are having an issue that isn’t getting resolved. Salaried employee title include Assistant Manager, Co Manager and Store Manager. The loss prevention manager is also salaried but you generally don’t see them unless you are doing something you aren’t supposed to.

Hourly employee titles include cashiers, greeters, stockers, CSM’s and department managers. Yes, that is correct a CSM is not actually a member of the management team, so if necessary you can talk to someone else.

I also can’t go a single day without a comment from someone that Walmart is terrible and I am a bad person for supporting them. It gets really frustrating for me because Walmart is also one of if not the biggest employer of jobs in the US and keep a lot of people working and with hope. This new increase will no doubt boost morale and hopefully increase the stability of personnel at a store.

Please don’t worry, I am not going to shut down the site and go work directly for Walmart, but I thought about it! I would love to hear your opinions and thoughts on this new program Walmart announce yesterday.

CEO Doug McMillon’s Letter to Walmart Employees:

As many of you know, I’m really proud to have been a Walmart associate for a long time. This company has given so many of us opportunities beyond our wildest dreams. We joined Walmart because we wanted a job but found much more than that. This company is a really special place. One of the reasons we’ve had some success is that we’ve known that every person, every voice, every idea has potential. You’ve heard us say things like our secret to success is that we’re all working together and that “our people make the difference.” While that phrase started as a meeting theme in 1979, it became a way of thinking. It’s what we believe. It’s what I believe. Our actions must match our beliefs. So today, we’re announcing a series of important changes that demonstrate our commitment to you, our associates.

After all, we’re all associates. We have different roles at different times in our career and every one of them is important. Today’s cashiers will be tomorrow’s store or club managers. Today’s managers are tomorrow’s vice presidents. Tomorrow’s CEO will almost definitely come from inside our company. During our recent Walmart U.S. year beginning meeting, I asked all of those in the arena, more than 7,000 people, to stand if they started their Walmart career in an hourly role. It felt like almost everyone stood up. It was an emotional moment. It made the word opportunity real.  In fact, our statistics show that about 75% of our U.S. management teams began in an hourly role. Every one of us is writing our own career story, and there are some powerful stories coming to life right before our eyes. So, how do we make sure that each one of you has the same opportunity, or better, as those that came before?

It starts by making sure we’re setting you up for success. We need great store managers and assistant managers who know what they’re doing, care about you and know how to teach effectively. We need stores with the right tools and environment for you to thrive. I think you feel the same way.  When I’m out in stores today, one thing I hear from associates at all levels is that you want to be freed up and empowered to serve your customers better.  You also want to know that there’s opportunity here and that your hard work will be recognized and rewarded. Our business is pretty simple when we boil it all down; sometimes we make it too complicated.

I’ve seen us change a lot over the years. We’re always trying to do the right thing and build a stronger business. We frequently get it right but sometimes we don’t. When we don’t, we adjust.  In recent years we’ve had tough economic environments, a rapidly growing company, and fundamental shifts in how customers are shopping.  We also made a few changes aimed at productivity and efficiency that undermined the feeling of ownership some of you have for your business.  When we take a step back, it’s clear to me that one of our highest priorities must be to invest more in our people this year.

Today, we’re announcing a package of changes in Walmart U.S. that will kick off a new approach to our jobs.  We’re pursuing comprehensive changes to our hiring, training, compensation, and scheduling programs, as well as to our store structure, and these changes will be sustainable over the long term.  

One of the most immediate changes is that we’ll raise our starting pay, and we’ll provide opportunities for further raises based on performance.  For our current associates, we’ll start by raising our entry wage to at least $9 an hour in April, and, by February of next year, all current associates will earn at least $10 an hour.  I’m also excited about an innovative program we’re launching for future associates that will allow you to join Walmart at $9 an hour or more next year, receive skills-based training for six months, and then be guaranteed at least $10 an hour upon successful completion of that program.  We’re also strengthening our department manager roles and will raise the starting wage for some of these positions to at least $13 an hour this summer and at least $15 an hour early next year.  There will be no better place in retail to learn, grow, and build a career than Walmart.

Sam’s Club is also making some important changes today, specifically to starting wages. Around the world, we operate with the same set of beliefs, and we’ll continue to share what we learn across countries. Every associate matters.  

As important as a starting wage is, what’s even more important is opportunity, and we’ll continue to provide that ladder that any of you can climb. If you work hard, develop new skills and care for others, there should be no limit to what you can do here. That’s what makes this place special.  I’ve seen it.  I’ve lived it.  And I want nothing more than for every Walmart associate today to feel that same connection to the company that I feel and to have the same opportunities I’ve had.  Let’s work together to serve our customers, grow our company, and take care of one another. 

Thanks for all you do.  You really do make the difference

Here are some of the major changes as released today:

• Approximately 500,000 full-time and part-time associates at Walmart U.S. stores and Sam’s Clubs will receive pay raises in the first half of the current fiscal year. Walmart hourly associates earn at least $1.75 above today’s federal minimum wage, or $9.00 per hour, in April. The following year, by Feb. 1, 2016, current associates will earn at least $10.00 per hour
• Associates will have more control over their schedules
  
  
• Walmart and the Walmart Foundation also committed $100 million over five years to help increase the economic mobility for entry level workers by advancing their careers
• Walmart is also piloting a new, comprehensive on-boarding and training program to create clear career pathways for associates, so they can earn more and seek promotions
• “We’re encouraging our associates to continue their education by providing no-cost access for them to complete their high school diploma or GED, as well as free and low-cost college credit to reduce the time and cost of earning a college degree. The skills and training that an associate receives through this program will be transferable outside of Walmart.”