- A week after bumping up hourly pay for store associates by at least $1, Walmart told Retail Dive it is phasing out its quarterly bonuses for U.S. hourly store associates at the end of the third quarter, Oct. 31.
- The quarterly bonuses will be rolled into associates' wages so that "associates receive consistent, predictable pay," a Walmart spokesperson said.
- The spokesperson cited a blog post last year saying the "overwhelming majority" of associates said they valued hourly wages ahead of bonuses.
In the past several years, quarterly bonuses have been based on store-specific performance. The bonuses were established to reward associates whose stores achieved their customer service and performance goals.
"It's important to point out that the quarterly bonus makes up just a portion of the pay raise associates are getting," Walmart said in a statement. "Those bonuses vary each quarter because they're based on sales for a specific store."
Last week, the retailer said it would increase the hourly wages for 565,000 associates, making it Walmart's third wage investment in the past year. Walmart, over the last 12 months, has raised wages for 1.2 million hourly store workers, according to the statement.
Walmart is making wage adjustments amid a competitive labor market that threatens to bleed through the busy holiday shopping season. Though the latest pay hike raises Walmart's minimum wage up from the $11 per hour rate it previously established, it is still lower than what some competitors offer.
Target set a $15 per hour starting wage in June last year. Walgreens Boots Alliance plans to do the same for all team members, according to an announcement last week. Meanwhile, Costco's minimum wage exceeds its competitors' at $16 an hour.
Last week, Walmart said it also plans to hire 20,000 permanent full-time and part-time supply chain workers in preparation for the holiday season. Supply chain workers are paid significantly higher with a $20.37 per hour average wage.