Walmart phases out quarterly bonuses amid wage hike
75% of company's U.S. salaried store, club and supply chain management teams started with hourly role
Walmart is ending its quarterly bonuses at the end of October for hourly associates after its latest wage increases take effect.
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Last week, the Arkansas-based company announced that 565,000 hourly store associates who represent the front end, food and consumables, and general merchandise work groups will receive at least $1 more per hour.
However, their quarterly bonus isn't going away, it's just being folded into their new hourly wage, Walmart said.
Walmart told FOX Business in a statement that the "quarterly bonus makes up just a portion of the pay raise associates are getting" and that this adjustment offers employees more predictability in terms of their pay.
"The overwhelming majority of our associates say their hourly wage is the most important part of their pay and by folding the bonus into the overall pay raise, associates receive consistent, predictable pay," the spokesperson said.
Over the past year, Walmart issued pay increases for 1.2 million hourly employees, which includes upping the average hourly wage to $16.40.
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The raises occurred in three phases. With each raise, the company says it folded the employees' quarterly bonuses into their hourly pay, essentially making up the difference.
In September of 2020, the company gave raises to more than 165,000 associates, including the team leads, a newly created hourly supervisor position, as well as for its specialty roles in bakery and deli departments and auto care centers.
Roughly five months later, Walmart issued raises to another 425,000 stocking and digital associates.
Approximately 75% of the company's U.S. salaried store, club and supply chain management teams started with an hourly role, CEO John Furner previously said.