Bentonville, Arkansas – At almost every Walmart store across the US, nearly half a million workers are preparing to get raises this month. Walmart started a $1 billion initiative in 2015 to invest in their employees by increasing wages in April, which will be followed up by a skills-based coaching program for its employees. Once the coaching program completes, if the employee successfully “graduates” from it, they will see another pay increase to at least $10 per hour next February. This is probably the most significant movement towards setting a livable wage across the country. The increase in earnings from these employees could amount to over $3,500 per year for full time employees, with a total increase of roughly $5,700 per year when factoring in next year’s raise too. In total, if you assumed that all Walmart associates affected by the raise were earning the current minimum wage and that they all worked full time, this would represent as much as $2,860,000,000 extra per year stimulated into the economy.
Half A Million Walmart Employees Getting Raises to $9 Per Hour Across US
One additional side effect that may not yet be realized by the increase in wages is that this will relieve some of the burden from state and federal governments to provide assistance to these employees. The additional earnings will reduce the amount paid out for Supplmental Nutrition Assistance Programs (Foodstamps), and have other effects to some of the employee’s government benefits. Either way, this is a move in the right direction that empowers more people, and makes Walmart a more desirable place to be employed. Walmart was smart to get ahead of the game, and work with their employees to build a better relationship, rather than spending more time and money fighting their public image for being a low wage employer.
Other stores are jumping on Walmart’s bandwagon, such as Target and TJ Maxx, who have all agreed to raise their starting wages to $9 per hour. There is no word yet on whether the other retailers are planning to increase their minimum wages later on like Walmart has, but it is certainly setting the tone for the need later on. If Walmart holds true to its word, there will be a lot of reasons for more qualified personnel to seek employment there, and increase the overall customer experience when dealing with happier and better trained employees.
Half A Million Walmart Employees Getting Raises to $9 Per Hour Across US.