Walmart launched a new bonus program for about 700,000 hourly employees working at its locations in the United States, as announced on Wednesday, June 5.
Walmart Rewards Long-Term Employees With New Bonus Program
The retail corporation announced a new initiative to reward long-term workers. The program is open to all hourly retail workers with one year of service or more, as reported by CNN.
Full-time employees with one year but fewer than five years of service get a $350 incentive each year. The bonus amount is further incremented according to seniority. Staff members who have worked with the company for at least 20 years can receive a maximum of $1,000.
Walmart's average hourly salary in the US is now close to $18, after a 30% increase over the last five years. The starting salary varies per shop and market, but it is usually between $14 and $19.
For full-time employees earning the average hourly wage, a $1,000 bonus is equivalent to less than 50 cents per hour and around 3% of their yearly salary.
Approximately 1.5 million of Walmart's 1.6 million US workers work by the hour. Therefore, the new program will cover as many as 700,000 of those retail hourly workers.
Base Pay Must Remain Competitive, Says Walmart US CEO
According to Walmart US CEO John Furner, who was speaking with reporters on a conference call, the idea for the new incentive originated from suggestions made by store employees.
This comes after Walmart announced in January that its US store managers would be eligible for a bonus program that would enable them to earn a bonus equal to up to 200% of their pay each year, according to Reuters.
While speaking with reporters, Furner stressed the need to be competitive on base pay.
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