The world’s largest private employer has announced it will raise starting pay for all its U.S. workers to $11 per hour. The change, which takes effect with the Feb. 17 pay cycle, is the latest in a series of salary increases, aimed at better wages for associates.
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Walmart employs approximately 2.3 million people worldwide—including more than 1 million hourly workers in the United States.
Pay and More
Walmart has committed to paying more, but pay is only one component of a new salary and benefits package for hourly associates.
The retailer also announced that all hourly associates in the United States, including part-time workers, will receive a one-time bonus. The amount of the bonus will be based on length of service; associates with at least 20 years qualify for $1,000.
In addition, Walmart has expanded its parental and maternity leave policy, providing full-time hourly associates in the United States with 10 weeks of paid maternity leave and six weeks of paid parental leave. Salaried associates will receive six weeks of paid parental leave, too.
Walmart will also provide financial assistance to associates adopting a child. The adoption benefit, available to both full-time hourly and salaried associates, will total $5,000 per child and may be used for expenses such as adoption agency fees, translation fees, and legal or court costs.
Motivated by Environment
In a press release detailing its new salary and benefits package, Walmart cites
“opportunities tax reform creates.” The Wall Street Journal equates those “opportunities” to billions of dollars in savings from the tax overhaul, which lowers the corporate tax rate from 35 percent to 21 percent.
But a worker shortage surely factored into the company’s decision as well. Although the announcement coincides with tax reform, it follows a holiday season where retailers and others faced hiring difficulties.
At the same time, numerous states and municipalities have recently raised the minimum wage, and others have committed to doing so. According to the National Employment Law Project, 18 states and 19 cities raised the minimum wage on Jan. 1, and later in 2018, three more states and another 18 cities and counties will follow. In addition, campaigns are underway in at least 17 more states and cities.
The National Employment Law Project points out that in 13 cities, the minimum wage is already $12 per hour or higher.
What to Pay
As for retailers and other large employers raising starting pay on the heels of Walmart’s decision, several already increased wages last year in an effort to attract job candidates.
In October, Target raised its starting pay to $11 per hour for all workers, including seasonal hires. Nevertheless, during the holiday season, the retailer faced competition from others, including the U.S. Postal Service, which offered between $14 and $18 per hour, depending on location, for temporary workers.
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Paula Santonocito, Contributing Editor for Recruiting Daily Advisor, is a business journalist specializing in employment issues. She is the author of more than 1,000 articles on a wide range of human resource and career topics, with an emphasis on recruiting and hiring. Her articles have been featured in many global and domestic publications and information outlets, referenced in academic and legal publications as well as books, and translated into several languages. |