Sam's Club, the Walmart-owned membership-only warehouse, is increasing pay for approximately 100,000 frontline workers.
The company recently introduced a roadmap for frontline associates, designed to help them plan and achieve more stable, long-term financial goals. As stated in the announcement, Sam's Club's new plan offers associates the chance to build fulfilling careers and lives within the company.
The company believes that more engaged employees are more productive, provide better service, and are more likely to stay, especially in the retail industry, where turnover in 2022 averaged 60 percent. Acknowledging this, under Sam's Club's new plan, associate hourly wages will advance more quickly within their pay range, increasing by three to six percent based on years of service.
A Brighter Future For Frontline Workers
The average hourly wage for Sam's Club associates is expected to exceed $19. Additionally, the company announced that its associates can earn thousands of dollars in annual bonuses.
The pay increase helps retain employees and increases their likelihood of staying with the company. On the other hand, Sam's Club's parent organisation, Walmart, recently announced a controversial policy dubbed the "No Quit Program" in a bid to stop high turnover.
Moreover, Sam's Club believes customers renew their memberships primarily because of their positive experiences with associates. It's also important to note that Sam's Club's average hourly wage has increased by nearly 30 percent in the past five years.
"Our new approach is one step in a series of investments we've made in our people over the last several years, all designed to provide more meaningful jobs and build successful teams," Sam's Club CEO Chris Nicholas said in a statement.
The pay raise announcement coincides with retailers beginning to prepare for the busy holiday season, which includes expanding their workforces. For example, Target and Aldi have already announced hiring drives to assist with the influx of shoppers during the season.
Prioritising Employee Well-being And Retention
To create the best shopping experience, Sam's Club has been on a multi-year mission to become an exceptional workplace by investing in wages, benefits, and tools. Since 2019, the company has implemented over a dozen distinct wage initiatives, benefiting hourly and salaried associates at all levels and in all areas of the Club, from starting pay increases to annual stock grants.
Pay is just one aspect of Sam's Club's commitment to its associates. During the same period, the company has prioritised career growth and created more opportunities for associates by offering increased security, flexibility, and convenience regarding when and how they work. This includes:
- Block schedules for full-time associates have been implemented to improve work-life balance by providing consistent weekly schedules.
- The number of full-time associates has increased by 11%, allowing more employees to achieve full 40-hour workweeks.
- New technology, such as Me@Sams, a user-friendly mobile app, has been introduced to help associates easily access information about their pay, discounts, learning opportunities, and benefits.
- Workgroups have been created to expand departmental cross-training and simplify job roles by over 60 percent.
The new pay plan for frontline associates will take effect on Saturday, November 2, 2024.
