Walmart is slowly increasing hourly wages to $12 but just as a test

Walmart has close to 5,000 stores within the United States and is one of the most well known retailers in the entire world. Another interesting fact is that Wal-Mart employs roughly 1.5 million people in the United States alone, but in recent years, they have been accused of paying some of the lowest wages in North America.

Walmart

Walmart has devised a test to raise their wages in 500 of their stores, with an innovative plan related to managing workflow in each store. But at the moment the only ones who will expect a pay increase to $12 are those who will form a select team of associates. The new team of associates will have a diverse set of jobs throughout the store such as stocking shelves, deli workers, even cashiers.

But before you run to Wal-Mart to drop off your resume, Wal-Mart made a statement that they have no plans to increase the wages for all of their 1.5 million employers. The raise increase is only for the elite team of associates.

Walmart’s goal is to create a team of associates that has a team sprit or desire to collaborate with each other. At the moment, each department within a store has limited tasked and is unwilling to help in other departments, which requires more staff.

The new team of associates provides the opportunity for low-level employees to acquire more responsibilities. Plus, it will replace old-fashioned titles within the company such as assistant manager or customer service manager. They will replace those job titles with more dynamic titles such as academy trainer, team leader and store leader.

One of the biggest advantages to the new structure is that employees will have greater opportunities for growth and progress within the company.

At the shareholders meeting last year, Doug McMillon, the chairmen of the Business Roundtable stated that the minimum wage in United Sates of $7.25 is too low and can be considered starvation wages. Wal-Mart is encouraging the Federal Government and Congress to increase the wages.

However, Walmart has established their own policy as to how much minimum wage should be within their company and has established it at $11. But it is still considered lower to other large retailer’s beginning hour rate such as Amazon whom pays $15 an hour. Other competitors of Wal-Mart, such as Costco and target also have established a higher minimum wage.

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Published:
Updated: February 6, 2020

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