Walmart made headlines recently when it announced that it will raise the minimum hourly wage to $9/hour. In addition, TJX, the parent company of Marshall’s, TJ Maxx and Home Goods, announced that it would boost its hourly rate to the same amount.
With the hourly pay boost, Walmart revealed that it would invest more money in employee training and engagement.
The retail industry has been cited to have the highest turnover rates and low engagement among employees. Will this move help Walmart, TJX and other retailers making moves? The RTP edit team shares their thoughts:
Debbie Hauss, Editor-in-Chief: For Walmart, I think raising the minimum wage will help improve overall employee motivation and loyalty, and also will help improve the perception of the retailer on a larger scale, but the retail giant will probably have to do more than just raise the minimum wage to boost its image significantly. Walmart has been accused of other infractions over the years, from intimidation to paycheck errors to inappropriate firing. For other retailers, including the Gap and IKEA in addition to TJX, raising the minimum wage should give the retailers access to a more dedicated, loyal workforce.
Advertisement
Alicia Fiorletta, Senior Editor: It’s undeniable that the cost of living has increased over the past few years, so it’s only right that Walmart, TJX and others raise their minimum hourly wages. After all, these retailers say they want quality employees that are engaged and dedicated to their jobs, and I think this helps them cast a wider net of potential employees. However, this is only the first of many steps that need to be taken. Employees need ongoing support and feedback, and need to have the tools, training and resources they need to do their jobs well, and even advance within the organization.
Rob Fee, Managing Editor: Raising the minimum hourly wage for its store associates is a good move by Walmart and TJX, but I think providing a path to its employees to earn even more is a better one. And that’s where I feel Walmart stepped up. By working with employees to figure out the best use of their talents, the retail giant should be able to attract better talent who will stay with the company longer. Shoppers should also benefit from interacting with happier, well-trained store associates.
Kim Zimmermann, Senior Managing Editor: I think raising the minimum wage is a great start, but it has to go hand-in-hand with training and identifying workers who aspire to more managerial roles. That will truly raise the quality of the consumer experience.
Glenn Taylor, Associate Editor: This comes off more like a PR play for Walmart. While they bumped up the minimum wage to $9.00/hr, the $1 billion investment figure seemed to reign as the most prominent number they wanted to highlight to give an impression that they were making a groundbreaking impact. A select few public critics had previously called for a wage boost to $15, so I doubt they will be totally satisfied with this. I do think though, that with TJX following suit, that the Walmart move at the very least could set a precedent for others that will hopefully lead to more steps toward better industry conditions and wages.
Brian Anderson, Associate Editor: As mentioned, a lot more has to be done besides raising the company’s minimum wage in order to see a significant improvement in employee motivation and loyalty. That’s where, I believe, Walmart’s onboarding and training program will play a major role. Giving employees an opportunity to learn and grow within the organization is a great motivational point. Alongside the pay raise, I believe the company will see a significant boost in overall employee happiness.
What do you think of this news? Will higher wages and more education create more engaged employees?