Sam’s Club Reimagines Workforce Compensation; Launches New Plan Focused on Providing More Predictable Financial Futures for Hourly Associates
New plan expands pay increases based on years of service, progressing associate pay faster; average hourly wage increases nearly 30% over the last five years
In an increasingly competitive retail landscape, attracting, hiring and, more importantly, retaining quality talent has become a true competitive advantage. Good jobs and fulfilling careers help ease the pressure many hourly associates face in balancing long-term personal finances with the responsibility to be brand ambassadors on the frontlines of customer experiences. More engaged workers are more productive, provide better service and are more likely to stay, especially in retail, where turnover in 2022 averaged 60%.
Recognizing this, under Sam’s Club’s new plan, associate hourly wages will progress faster in their pay range, expanding the increase to between 3% and 6% based on years of service. The plan sets predictable pay increase milestones to give associates a longer-term perspective on their financial futures. With these new compensation investments, the average hourly rate for Sam’s Club associates is anticipated to be above
“At Sam’s Club, we believe delivering an unparalleled experience for our members starts with investing in our frontline associates,” said
Providing Good Jobs is Good for Business
In today’s retail market, attracting and retaining quality talent requires deliberate and meaningful investments in everything from wages and benefits to education and technology, associate satisfaction and advancing top performers through the promotion pipeline quicker. At Sam’s Club, three of four salaried managers began as hourly associates, and in the last five years, the number of hourly associates promoted to salaried positions has increased nearly 400%.
“To be truly customer-centric, companies must first be frontline focused, and this takes courage and conviction to make big bets on people,” said
Investing in Associates for the Long-term
To ensure Sam’s Club creates the best shopping experience, the company has been on a multi-year journey to make it the best place to work by investing in wages and benefits, along with tools and technology to make associates’ lives easier. Since 2019, Sam’s Club has made more than a dozen unique wage investments – from starting pay increases to annual stock grants – that have benefited hourly and salaried associates across every level and area of the club.
Pay is only one component of Sam’s Club’s commitment to associates. Over the same period, the company has focused on career growth and creating more pathways of opportunity for associates by providing greater security, flexibility and convenience when and how they work. This includes:
- The implementation of block schedules for full-time associatesto provide associates better work-life balance with consistent weekly schedules
- An increase in full-time associates by 11% so even more associates can reach full 40-hour weeks
- The introduction of new technology such as Me@Sams, an easy-to-use mobile app that allows associates to easily navigate their pay, discounts, learning opportunities and benefits – all in one place
- The creation of workgroups to broaden departmental cross-training and simplifying the types of roles by more than 60%
The new pay plan for frontline associates goes into effect
About Sam’s Club
Sam’s Club, the
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allison.vanmatre@walmart.com
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