Walmart Investing Big in Employee Training

When President Donald Trump signed the 2017 tax cut legislation into law at the end of 2017, it was seen by many as providing a big boost to the bottom lines of wealthy individuals and corporations. But the impact varies by company. “An easy way to identify winners is to find companies that generate all, or most, of their profits in the U.S.,” according to an article in Fortune. “They pay the highest effective tax rates and will see the biggest reductions.” A major retailer like Walmart, which makes substantial profits as a U.S.-based retailer, is a good example. What will it do with its windfall? A substantial amount is going into training.

Proponents of the tax bill have argued that lowering corporate tax rates will allow impacted corporations to, among other things, spend more money on employees in the form of pay increases, bonuses and increased training. Walmart recently announced plans to do all three. Whether or not these actions are truly directly related to the GOP tax bill is subject to debate; however, the company’s focus on improved training is big news in and of itself.
Adam Blair, writing for Retail Touch Points, says: “The headlines last week focused on Walmart raising its starting minimum wage to $11 per hour, adding benefits and offering a one-time bonus to employees. But the most important long-term investment in its people is the retailer’s commitment to training, according to President and CEO Doug McMillon.” McMillon has touted what he describes as the retailer’s commitment to its staff as one of the primary drivers of the new training initiatives.
While the motive behind Walmart’s decision to invest its anticipated tax savings on employee investment is debatable, the impact is not—it will be significant. Walmart is a huge employer and one of the largest companies in the country. Its decision to invest heavily in employee training is certain to be noticed by companies around the country and around the world, and they may well feel compelled to follow suit.