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Walmart to offer bonuses to keep warehouse workers on the job

Story Highlights
  • Walmart warehouse workers will receive weekly bonuses as the retail giant competes in a tight labour market and prepares for the holiday season, according to the company.
  • To attract and retain employees, an increasing number of retailers and restaurants are dangling new perks.

Walmart is giving weekly bonuses to warehouse employees as it competes in a tight labor market and prepares for the holiday season.

The discounter is offering additional pay based on the location of the facility as well as the worker’s role and shift. According to Walmart spokesman Scott Pope, this will amount to $200 more per week for some full-time employees and could be more if they work overtime.

With 1.6 million employees, Walmart is the country’s largest private employer. It is one of a growing number of retailers and restaurants that have recently increased pay, dangled new perks, and tweaked recruitment and retention strategies. Many businesses have spoken out about their struggles to fill positions as the economy recovers.

They’ve blamed the labour shortage on a variety of factors, including worries about Covid-19, a lack of child care, and supplemental unemployment benefits.

Walmart’s increased pay is also intended to get ahead of the holiday shopping season — and ensure store shelves and warehouses are stocked, according to Pope.

Following strong sales during the pandemic, Walmart faces difficult year-over-year sales comparisons. Furthermore, with the rise of the delta variant and changing consumer habits, more shoppers may prefer to have packages delivered to their homes or picked up in the parking lot.

So far this year, Walmart stock is up less than 1%. In early Friday trading, shares were up less than 1%.

CVS Health announced earlier this week that it will increase worker pay and eliminate education requirements, such as requiring a high school diploma or GED to qualify for most entry-level positions. It announced plans to raise the minimum wage from $11 to $15 per hour beginning in July 2022.

Target also announced a new benefit this week: a debt-free college education for full- or part-time employees, beginning in the fall. The company will also contribute to the cost of graduate studies. Walmart, which already offers a similar education benefit, recently announced the elimination of a $1 per day fee and the payment of 100 percent of college tuition and textbooks.

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