Walmart is implementing a higher minimum wage in select stores as it introduces a new, more adaptable workflow model. In approximately 500 stores, the starting hourly pay for team associates, a newly established role, has been increased from $11 to $12. These team associates will undertake various tasks such as cashier duties, shelf stocking, and deli work.
Despite being the largest private employer in the United States, Walmart has indicated that there are no immediate plans to implement widespread wage increases. The objective behind this shift is to transition from a department-focused model, centered on specific tasks, to a more inclusive team-oriented approach.
Under this new model, employees in these 500 Walmart stores will be entrusted with additional responsibilities, with traditional roles like assistant manager and customer-service manager being phased out in favor of positions such as academy trainer, team lead, coach, and store lead. With enhanced training opportunities, there will be broader pathways for career advancement for lower-level workers.
Drew Holler, senior vice president of U.S. People and Associate Experience at Walmart, expressed enthusiasm about the initiative, stating that it empowers associates to better serve customers and learn new skills within their teams.
Walmart CEO Doug McMillon, also chairman of the Business Roundtable, acknowledged that the federal minimum wage of $7.25 per hour is inadequate and advocated for congressional action to address this issue. Walmart has faced criticism, including from Senator Bernie Sanders, for paying what critics deem as “starvation wages.”
In January 2018, Walmart raised its minimum wage to $11 an hour, though it remains below competitors like Amazon, which offers a $15 hourly rate. Both Target and Costco also boast higher starting hourly pay than Walmart.
