Walmart Boosts Wages and Benefits Amid Tight Labor Market
Walmart is increasing wages and benefits as the U.S. labor market remains tight.
America’s largest private employer announced Tuesday (Jan. 24) it is rolling out a four-pronged plan to attract and retain workers, including raising the salaries of its hourly associates.
In a memo to staff cited by several news outlets, the company said it is increasing its starting salary for associates from $12 per hour to $14 per hour. The company’s announcement said the raises would bring its average hourly wage in the U.S. to above $17.50, with employees seeing the raises in their March 2 paychecks.
The plan also shows the company putting an emphasis on more skilled laborers, including those that run its auto care centers (ACC).
“Last fall, we created a higher-paying ACC coach role,” John Furner, Walmart’s president and CEO, said in the announcement. “Now we’re introducing a higher-paying ACC team lead position and elevating the ACC tech position to a higher pay band that reflects the special skills needed for the role and its importance to our business.”
The company also announced last week that it will expand its Associate-to-Driver Program, which pays for commercial driver’s license training for its workers to let them become Walmart truck drivers.
Initially offered to supply chain associates, Walmart said the program is now available to store employees, giving them access to a position that pays up to $110,000 in its first year, according to the Tuesday announcement.
As PYMNTS noted last week, the expansion comes as retailers are facing the threat of a labor strike by UPS this summer, giving them a reason to expand their logistics operations.
Lastly, Walmart said in the announcement it is adding new college degrees and certificates to its Live Better U education program. Full- and part-time workers can take part in the program on their first day, with Walmart paying for all of their tuition and fees.
“These new options are focused on where our business is headed and will equip associates with skills to unlock new career opportunities,” Furner said in the announcement.
Walmart’s wage hike comes as unemployment in the U.S. is at a 50-year low.
The most recent employment report from the Bureau of Labor Statistics showed the retail sector adding 9,000 jobs in December after seeing a loss of 30,000 jobs the prior month. Transportation and warehousing picked up 5,000 jobs, following a 15,000-position loss the previous month.
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