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Walmart announced plans to raise wages for Walmart U.S. store managers for the first time in a decade in a move it sees ultimately translating to an investment in all store associates.
In a note to store managers posted online, Cedric Clark, EVP of store operations for Walmart U.S., said that the No. 1 driver of job satisfaction at the store level is an associate’s manager.
“Not only are you responsible for exceeding customer expectations day in and day out; each of you is the CEO of a multimillion-dollar business,” said Clark. “And you’re the driving force behind the development of our next generation of leaders. We see an investment in you as an investment in our culture, our core values and in the day-to-day experience of every associate in every store.”
Under the new store manager compensation program, the average salary rises to $128,000 a year, up 9.4% from $117,000 previously.
The store manager bonus program is also being redesigned, with the individual store’s profit holding a larger influence, in addition to sales. If all targets are met, the store manager’s annual bonus could reach up to 200% of their base salary.
Walmart told CNN that it hasn't made any changes to store managers' pay structures in more than a decade.
Clark described the upgraded compensation package for store managers as the “next step” in broader investments in pay and benefits for front-line workers. He noted that the U.S. average hourly wage will soon exceed $18, up from $17.50 currently. Hourly pay was only $14.76 in 2020, with workers receiving several pay boosts during the pandemic amid a labor shortage.
At $18 an hour on a 40-hour week, the full-year pay for an hourly associate comes to about $38,000, about a third of a store manager’s average salary.
The pay boosts also come after Walmart in July 2021 announced a $1 billion five-year investment in a career-development program.
Clark noted that approximately 75% of Walmart’s field management teams, including himself, began as hourly employees. Clark said, “You’re the reason our associates can build something special working at Walmart – just like many of us have.”