Walmart-owned Sam's Club is raising wages for about 100,000 frontline workers.
The company has created a roadmap for employees to “plan and pursue a more predictable, long-term financial future,” which could be seen as a way to develop and retain current employees in the competitive retail industry.
According to Sam's Club, retailers are seeing average sales declines of 60% in 2022.
Under Sam's Club's new plan, “hourly wages will rise faster within the pay range, increasing between 3% and 6% depending on years of service.” The average hourly wage for Sam's Club employees is expected to be more than $19. The company also announced that it will give employees “the potential to earn thousands of dollars in annual bonuses.”
Increased pay helps keep employees engaged, making them more likely to stay with the company, and according to Sam's Club, the main reason customers renew their memberships is because of their experience with employees.
Sam's Club's average hourly wage has increased about 30% over the past five years.
“Our new approach is the latest in a series of investments we've made in our employees over the past few years, all aimed at providing more meaningful work and building successful teams,” Sam's Club CEO Chris Nicholas said in a statement.
The wage hike announcement comes just as retailers begin to prepare for the busy holiday season, including hiring more staff.
Target and Aldi, for example, have already announced major hiring drives to accommodate increased numbers of shoppers throughout the season.
