Walmart To Scrap Quarterly Bonuses As It Implements Wage Hike
Walmart Inc has said it is to phase out its decades-old quarterly bonuses for store workers as it implements hourly wage raises for employees.
The US retailer would scrap the benefit at the end of its fiscal year on 31 January, and roll it into associates' base pay.
"The overwhelming majority of our associates say their hourly wage is the most important part of their pay and by folding the bonus into the overall pay raise, associates receive consistent, predictable pay," a Walmart spokesperson said in a statement.
Planned Wage Hike
Last week, the company said it planned to raise wages for more than 565,000 store workers by at least $1 an hour in its third wage investment over the past year.
With the wage increase, Walmart's US average hourly wage will go up to $16.40, it has said.
Several US retailers and restaurants have been forced to cut working hours and limit operations due to labor shortages. Scrambling to find workers, a few companies are even offering sign-on bonuses between $1,000 and $5,000 to some employees.
However, the labour crunch is expected to ease starting in September, as the government-funded unemployment benefits expire.
In August, the retailer raised its annual US same-store sales forecast after beating analysts' estimates, as shoppers coming out of lockdown bought more clothes, travel gear and back-to-school merchandise.
It plans to hire 20,000 workers at its supply chain division ahead of the busy holiday season as the world's largest retailer and other major rivals battle a logistics and labour crunch.