Walmart announced on Wednesday that it will provide financial bonuses to its U.S. hourly store employees, including those at its pharmacy and Vision Center locations, based on their store's performance and tenure of service with the retailer.
The move is expected to benefit approximately 700,000 frontline employees.
Both part-time and full-time associates will be eligible for bonuses of up to $1,000 annually, a plan developed from feedback provided by store workers, according to Walmart U.S. CEO John Furner.
Under the new scheme, a full-time employee with one to almost five years of service can earn an additional $350 per year, while a full-time worker with 20 years of service can receive the maximum bonus of $1,000.
It follows Walmart's earlier announcement in January, where it revamped the bonus structure for its U.S. store managers, allowing them to earn annual bonuses up to 200% of their salary, Reuters reported.
"It's important that we are competitive on base wages," Furner said in a call with reporters.
To be eligible for the bonus, hourly workers must have at least one year of service and their bonuses will be calculated based on their stores achieving specific performance targets, Furner added.
The bonus announcement came just before Walmart's annual general meeting, where investors voted on seven shareholder proposals, including one advocating for a compensation policy that ensures workers earn enough to meet a family's basic needs.
Walmart, which employs about 1.6 million workers in the U.S., most of whom staff its 4,700 stores, has a starting wage range of $14 to $19 per hour. Over the past five years, the company has increased hourly wages by 30%, with the average wage for store associates now stands at $18 per hour.
Walmart also announced on Wednesday the introduction of a new training program aimed at providing hourly workers in its U.S. stores and supply networks the opportunity to transition into higher-paying roles within facilities maintenance, refrigeration, heating, ventilation, air conditioning (HVAC), and automation.
These positions offer wages ranging from $19 to $45 per hour, and participants will be compensated during their training.
The new skilled trades initiative is modeled after a successful program launched two years ago, which enabled employees in Walmart's distribution and fulfillment centers to become certified truck drivers through a 12-week course taught by experienced Walmart drivers.
Walmart reported strong financial results last quarter, driven by its low prices attracting shoppers amid persistent high inflation.
The company's profits surged to $5.1 billion, up from $1.6 billion the previous year, and revenue increased by 6% to $161.5 billion from $152.3 billion a year ago.
