Americans have seen major hardships throughout the entirety of the coronavirus pandemic. Among labor shortages, companies now struggle to entice new employees. Currently, Americans receive better income from federal unemployment checks rather than what they may receive through employment. However, in an effort to combat a lack of labor, companies have had to transform and grow their employee benefits. Most recently, Walmart plans to get rid of its decades-old employee bonuses. Instead, they will increase the base salaries for hundreds of thousands of workers.
Walmart’s move to terminate quarterly employee bonuses by the end of this fiscal year on January 31st, according to the Daily Mail. Instead, the company plans to use those wages to increase pay for hourly employees by $1.00. The transition encompasses a total of 565,000 of its 1.6 million store employees. The increase takes place at the end of this month.
Walmart’s wage adjustment (its third this year) increases average employee pay to $16.40 an hour. Its minimum hourly pay jumps to $12.00. However, the company nevertheless still possesses lower wages than its major competitors. These include Amazon, Kroger, and Target. The minimal wages see further criticism as many of Walmart’s employees live below the national poverty line.
Further, Walmart may experience additional criticism as the wage increases only apply to certain employees based on stipulations. Those surround store performance, attendance, and overall store-theft levels.
A spokeswoman for Walmart stated, in reference to the coming wage adjustment, many of its workers prefer the dropped bonuses. In this way, increased pay wages are more reliable and predictable.
Walmart Added Education Benefits for Employees
Again, as labor shortages continue and demand skyrockets, a byproduct of the coronavirus pandemic, companies must reevaluate their employee pay and benefits. In addition to increases in employee wages, many stores have put an emphasis on educational value.
July saw Walmart additionally add educational benefits to their employee benefits as a way to attract new hires. Reports stated the major company would utilize a total of $1 billion to support employees’ college tuition and the cost of books.
Outlets previously reported that the cost of employee education sees 100% coverage by the nation’s largest private employer. Amid competing stores and brands boasting wages upwards of $15.00 an hour, the earlier decision came as another method to attract new employees in such a tight labor market.
However, among major hiring boosts, Americans may soon have no choice but to return to work as this month sees the termination of government-funded unemployment benefits.
In response to the ongoing issue, other major brand representatives, such as Lyons Group Culinary Director Nick Calias, stated, “Getting them back to work is going to be hard.” He further stated the obvious with, “You’re going to have to pay more, offer new opportunities for growth and maybe do things different that you weren’t going to do.”
And as many Americans already struggle to make ends meet, potential employees may use this momentum to demand the job benefits they truly deserve.