Seeking to provide more predictable financial futures for employees, Sam’s Club is initiating a plan that will see associates’ hourly wages progress faster within their pay range, increasing between 3% and 6% based on years of service. The retailer expects that these changes, which go into effect Nov. 2, 2024, will push the hourly average wage above $19, with opportunities to earn more via bonuses.
“Until now, retail compensation has largely been about hourly wages, and it’s almost unheard of to talk about frontline associate compensation in terms of a predictable financial future,” said Chris Nicholas, President and CEO of Sam’s Club in a statement. “That changes for Sam’s Club starting today. As our associates invest their time, skills and knowledge in us, we’ve been investing in them and their families. Our new approach is one step in a series of investments we’ve made in our people over the last several years, all designed to provide more meaningful jobs and build successful teams.”
Over the last five years, Sam’s Club has increased average hourly wages by nearly 30%, but these increases are only one element of the initiative. Other changes include:
- Implementation of block schedules for full-time associates, which provides more consistent weekly schedules and better work-life balance;
- An 11% increase in full-time associates, giving more workers the opportunity to reach full 40-hour weeks;
- New technology such as Me@Sams, a mobile app designed to help associates navigate their pay, discounts, learning opportunities and benefits in one place; and
- The creation of work groups to broaden departmental cross-training.
Sam’s Club parent Walmart also has taken steps to boost compensation, increasing associate pay to an average of $17.50 per hour in January 2023; raising salaries for pharmacists and opticians in June 2023; and increasing store managers’ base pay and redesigning its bonus program in January 2024.
Other retail enterprises are in investing in their salary and benefits packages to help boost employee acquisition and retention, especially as U.S. workers feel the squeeze of higher living costs. In September 2022 Amazon boosted pay and benefits with an investment of nearly $1 billion, and in March 2023 Dollar General committed to increasing employee working hours with a near-$100 million investment, but did not raise wage rates.
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