Walmart Introduces Incentive Program for Hourly Employees

Walmart, the biggest private sector employer in the U.S., is rolling out a new bonus program tailored for its hourly staff.

On Wednesday, in an announcement about new opportunities for associates, the company unveiled a program designed to recognize and reward long-standing full- and part-time employees. “The longer an hourly store associate stays with the company, the higher their bonus potential, up to $1,000 a year,” Walmart stated.

Eligibility for the bonus program extends to hourly store employees who have been with the company for a year or more. Full-time employees with a minimum of a year but less than five years of service with the company will receive an annual bonus of $350. The bonus amount will rise in line with the level of position, with a max bonus of $1,000 for associates who have worked for Walmart for at least 20 years.

In a competitive labor market, Walmart, a major player in the hourly job sector, has been struggling with recruitment and retention challenges. Over the past five years, the company has raised hourly wages by about 30%, resulting in an average U.S. hourly wage of around $18. Beginning salary varies from $14 to $19 based on the store’s location and the local market conditions.

For employees working a standard 40-hour week, the $1,000 bonus translates to roughly 50 cents per hour. This bonus accounts for approximately 3% of the annual pay full-time workers take home earning the average hourly wage.

The company, which has 1.6 million U.S. employees, most of whom are hourly workers, has noted that this new program covers approximately 700,000 of its hourly store employees.

Earlier this year, Walmart announced an increase in the average pay for its store managers, from $117,000 to $128,000. This rise is just over 9%.