Walmart provides warehouse staff bonuses earlier than the vacations
A Walmart package is unloaded from a trailer for sorting at a FedEx ground hub in Hagerstown, Maryland.
Andrew Harrer | Bloomberg | Getty Images
Walmart gives warehouse workers weekly bonuses as the retail giant competes in a tight labor market and powers up for the holiday season, the company told CNBC.
The discounter offers additional payment based on the location of the facility and the role and shift of the worker. For some full-time workers, that adds up to $ 200 a week and could be more if they work overtime, according to Walmart spokesman Scott Pope. That additional pay started this month and will continue at most sales and fulfillment centers throughout fiscal year, he said.
Walmart warehouse workers already have higher salaries than store workers. Employees at sales and fulfillment centers had an average hourly wage of $ 20.37 (excluding driver), which is above the Walmart US average of $ 14.61, according to the company’s environmental, social, and governance report. Dollar at the end of 2020. Since then, the company has increased wages. In March 2021, the company said the average hourly wage in the US is over $ 15.25 an hour.
The bonuses were first reported by the Wall Street Journal.
Walmart is the largest private employer in the country with 1.6 million employees. It’s part of a growing number of retailers and restaurants that have increased pay, offered new perks, and streamlined recruiting and retention strategies over the past few weeks. Many companies have spoken of their difficulties in filling jobs amid a re-opening economy. They attributed the labor shortage to a variety of factors, including concerns about Covid-19, inadequate childcare and additional unemployment benefits.
For Walmart, the extra pay is also supposed to pre-empt the rush of the Christmas shopping season – and make sure the shelves and warehouses are full, Pope said.
Walmart faces challenging year-over-year sales comparisons following strong sales during the pandemic. Also, with the advent of the Delta variant and changing consumer habits, more shoppers may want to send parcels to their doors or pick them up in the parking lot.
Walmart stock is up less than 1% so far this year. In early Friday trading, stocks rose less than 1%.
CVS Health said earlier this week that it will increase worker pay and drop educational requirements, such as: From July 2022, the minimum wage is to be increased from $ 11 to $ 15 an hour.
Target also rolled out a new perk this week: a debt-free college education for full- or part-time workers that will begin this fall. The company will also help finance college degrees. Walmart, which already has a similar educational advantage, recently said it will cut a $ 1 per day fee and pay 100% of college tuition and textbooks.
Target also recently announced a $ 200 bonus for all of its approximately 340,000 hourly workers, which will be paid out this month. The company said the investment is $ 75 million.