Sam's Club Reimagines Workforce Compensation; Launches New Plan Focused on Providing More Predictable Financial Futures for Hourly Associates

Business Wire 17-Sep-2024 10:07 AM

New plan expands pay increases based on years of service, progressing associate pay faster; average hourly wage increases nearly 30% over the last five years

Sam's Club, a membership retail club and digital innovation pioneer, today unveiled a reimagined approach to its workforce compensation, announcing a new plan that accelerates pay for nearly 100,000 frontline associates and provides a roadmap for them to plan and pursue more predictable, longer-term financial futures. The new plan creates opportunities for associates to build better careers and lives with Sam's Club.

In an increasingly competitive retail landscape, attracting, hiring and, more importantly, retaining quality talent has become a true competitive advantage. Good jobs and fulfilling careers help ease the pressure many hourly associates face in balancing long-term personal finances with the responsibility to be brand ambassadors on the frontlines of customer experiences. More engaged workers are more productive, provide better service and are more likely to stay, especially in retail, where turnover in 2022 averaged 60%.

Recognizing this, under Sam's Club's new plan, associate hourly wages will progress faster in their pay range, expanding the increase to between 3% and 6% based on years of service. The plan sets predictable pay increase milestones to give associates a longer-term perspective on their financial futures. With these new compensation investments, the average hourly rate for Sam's Club associates is anticipated to be above $19, with the potential to earn thousands of dollars annually in bonuses. In the last five years alone, Sam's Club's average hourly wage has increased nearly 30%.

"At Sam's Club, we believe delivering an unparalleled experience for our members starts with investing in our frontline associates," said Chris Nicholas, President and CEO of Sam's Club, in a LinkedIn post. "Until now, retail compensation has largely been about hourly wages, and it's almost unheard of to talk about frontline associate compensation in terms of a predictable financial future – that changes for Sam's Club starting today. As our associates invest their time, skills and knowledge in us, we've been investing in them and their families, creating a place of hope and opportunity through a multi-year journey that has the potential to transform lives. Our new approach is one step in a series of investments we've made in our people over the last several years, all designed to provide more meaningful jobs and build successful teams."

Providing Good Jobs is Good for Business

In today's retail market, attracting and retaining quality talent requires deliberate and meaningful investments in everything from wages and benefits to education and technology, associate satisfaction and advancing top performers through the promotion pipeline quicker. At Sam's Club, three of four salaried managers began as hourly associates, and in the last five years, the number of hourly associates promoted to salaried positions has increased nearly 400%.

"To be truly customer-centric, companies must first be frontline focused, and this takes courage and conviction to make big bets on people," said Zeynep Ton, Professor of the Practice in the Operations Management Group at MIT Sloan School of Management and Co-founder & President of The Good Jobs Institute. "In 25 years of studying the world's most influential organizations and their leaders, there's a clear relationship between good jobs – created through strategic investments in people and thoughtful work design – and strong employee motivation, customer satisfaction and business performance. Sam's Club's strategic investments in employees and their work have already fueled productivity, increased sales and built record membership rates. Now, they are continuing to enhance the retail experience for both employees and customers."

Investing in Associates for the Long-term

To ensure Sam's Club creates the best shopping experience, the company has been on a multi-year journey to make it the best place to work by investing in wages and benefits, along with tools and technology to make associates' lives easier. Since 2019, Sam's Club has made more than a dozen unique wage investments – from starting pay increases to annual stock grants – that have benefited hourly and salaried associates across every level and area of the club.

Pay is only one component of Sam's Club's commitment to associates. Over the same period, the company has focused on career growth and creating more pathways of opportunity for associates by providing greater security, flexibility and convenience when and how they work. This includes:

• The implementation of block schedules for full-time associates to provide associates better work-life balance with consistent weekly schedules
• An increase in full-time associates by 11% so even more associates can reach full 40-hour weeks
• The introduction of new technology such as Me@Sams, an easy-to-use mobile app that allows associates to easily navigate their pay, discounts, learning opportunities and benefits – all in one place
• The creation of workgroups to broaden departmental cross-training and simplifying the types of roles by more than 60%

The new pay plan for frontline associates goes into effect Saturday, Nov. 2, 2024.

About Sam's Club

Sam's Club, the $86 billion division of Walmart Inc. (NYSE:WMT), is a membership club that is pioneering the future of retail experience, providing exclusive access to value, convenience and modern omnichannel shopping options to millions of members in 600 clubs across the U.S. and Puerto Rico. With over 40 years of innovating in the category, Sam's Club continues to redefine club membership shopping with its curated assortment of quality fresh food and Member's Mark® items, in addition to market leading technologies and services like Scan & Go™️, curbside pickup and home delivery. Visit the Sam's Club Newsroom, shop at SamsClub.com or connect with Sam's Club on LinkedIn, X, Facebook, Instagram, TikTok and Pinterest.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240917969430/en/