Walmart adds employee bonus for hourly US workers
Full- and part-time hourly Walmart workers now eligible for bonuses
Walmart U.S. CEO John Furner joins ‘The Big Money Show’ to share developments with the retail giant, including the creation of 150 new U.S. stores.
Walmart is now offering bonuses to its hourly employees in the U.S., the company announced Wednesday.
The retail behemoth said in a press release that full- and part-time hourly workers will be eligible for the new bonus, which it says "rewards great work and customer service, and it celebrates long-term associates who build a career."
A worker walks through the aisles in a Walmart Supercenter in Hallandale Beach, Floeida, on Feb. 20. (Getty Images / Getty Images)
The longer an associate has been with the company, the higher the associate's bonus potential, to a maximum of $1,000.
"It's important that we are competitive on base wages," Walmart U.S. CEO John Furner told reporters about the move on a press call.
WALMART ADDS PET TELEHEATH PERK TO MEMBERSHIP PROGRAM
A worker has to be with the company for a year to be eligible for the bonus, which is calculated based on stores achieving certain performance targets, he added.
Walmart is now offering a bonus to hourly employees. (Reuters/Mike Segar/File Photo / Reuters Photos)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WMT | WALMART INC. | 79.66 | +0.82 | +1.04% |
The new bonuses are the latest pay boost for Walmart's 700,000 front-line workers, whose average pay has been raised some 30% over the past five years to nearly $18 an hour.
Walmart employs about 1.7 million U.S. workers, a majority of whom staff its 5,000 stores.
TARGET ‘CAUTIOUS’ ON NEAR-TERM GROWTH OUTLOOK AS MORE AMERICANS ARE MAXING OUT CREDIT CARDS
Its minimum hourly wage starts from $14, less than the $15 starting wage at Amazon.com and Target. However, starting pay for a Walmart associate can be as high as $19 an hour, depending on the store location.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 187.00 | +2.48 | +1.34% |
| TGT | TARGET CORP. | 148.44 | +1.15 | +0.78% |
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Earlier this year, Walmart gave its U.S. store managers a raise, lifting their average salary to $128,000 and increasing their annual bonus potential to as high as 200% of their annual salary.
Reuters contributed to this report.