- Walmart said Thursday that it is ending quarterly bonuses, which have been paid to employees for decades.
- The big-box retailer recently announced that it would boost hourly pay.
- Many companies have been raising wages and sweetening perks as they try to attract candidates and retain workers in a competitive labor market.
Walmart said it will end quarterly bonuses, as it raises hourly wages for store employees and other workers, according to a report by The Wall Street Journal.
In a memo to employees, the big-box retailer said it will eliminate the additional pay on Jan. 31, 2022 and roll it into its workers’ base pay, according to the report. The bonuses — dispersed four times per year — have been paid out for decades.
A Walmart spokeswoman has been contacted for comment.
The latest announcement comes on the heels of another wage change. Walmart announced last week that it would raise its minimum wage to $12. It said that would amount to at least a dollar increase in hourly wages for more than 565,000 store workers.
Walmart’s U.S. average hourly wage is now $16.40, according to John Furner, the CEO of Walmart U.S.
Many companies have raised wages and sweetened perks as they try to attract and retain workers in a competitive labor market — but Walmart has lagged behind other retailers like Target and Amazon that have already hiked its starting pay to $15 an hour.
Walmart has emphasized other benefits, including a program that covers the cost of college tuition and textbooks for employees.
Source: Business - cnbc.com
