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Walmart Raises Store Managers’ Pay for the First Time in a Decade, Averages Now $128,000
In a significant move, Walmart has announced a salary increase for its store managers, marking the first adjustment in over a decade. The average pay for these managers will rise from $117,000 to $128,000 annually, representing a 9% increase. This change is set to take effect on February 1, 2024. It aims to recognize the substantial responsibilities undertaken by store managers in overseeing Walmart’s expansive stores, each catering to thousands of products and shoppers.
Walmart clarified that the previous pay range for store managers was between $65,000 and $170,000. With the adjustment, the new range will be $90,000 to $170,000, depending on the format of the store the manager oversees. This adjustment comes in the wake of a period of high inflation and the challenges posed by the global pandemic.
Emphasis on Store Profits in Bonus Program Redesign
Simultaneously, Walmart is redesigning its store manager bonus program, shifting the focus to store profits, which will now play a more significant role in calculating their bonuses, in addition to sales. The revamped program allows for bonuses of up to 200% of the manager’s base salary if all targets are met. Cedric Clark, executive vice president of store operations at Walmart’s U.S. division, stated in a blog post, “They’re at the forefront of everything we do. We’re trying to create opportunities where they can continue to aspire.”
Walmart Adjusts Pay Amidst Market Competition
While Walmart’s decision to increase store managers’ pay is commendable, it comes against the backdrop of a cooling labor market, as evidenced by the reduction in starting pay for certain new hires. In September, Walmart reduced the starting pay by approximately $1 for new hires involved in online order preparation and shelf restocking. This move contrasts with the broader trend of increasing wages to attract and retain talent.
Summarizing the Changes
In summary, Walmart is making significant adjustments to its compensation strategies. The raise in the store managers’ average pay, the first in over a decade, reflects the company’s recognition of the substantial responsibilities borne by these individuals. The pay range for managers has been revised, and a redesigned bonus program now emphasizes store profits. This move is part of Walmart’s broader effort to remain competitive in the labor market, attract skilled managers, and acknowledge the pivotal role store managers play in the company’s success.
