Walmart is boosting the starting base pay for store managers and updating its bonus plan to focus more on profits for these leaders. The changes, revealed on January 18, will take effect on February 1. The nation’s largest retailer and private employer aims to retain qualified managers and show hourly workers that there is potential for advancement in a competitive labor market. About 75% of store managers at Walmart started as hourly workers, the company stated.
The new starting annual base wage for store managers will now range from $90,000 to $170,000, compared to the previous range of $65,000 to $170,000. This means the average base pay for store leaders will increase from $117,000 to $128,000, according to Cedric Clark, Walmart’s Executive Vice President of Store Operations.
Walmart, ranked second on the Transport Topics Top 100 list of the largest private carriers in North America, is also revamping its store manager bonus program. The new plan places more emphasis on profits rather than just sales. Managers could now earn up to double their base salary as a bonus if they meet all targets, compared to the previous maximum of one and a half times their base salary.
The company is focused on creating opportunities for store managers to grow and succeed, noted Clark, who started as an hourly worker. Walmart highlighted that driving profits allows them to reinvest in pricing and their workforce.
Additionally, Walmart announced that average hourly wages will surpass $18, up from $17.50, due to the introduction of higher-paying hourly roles in Auto Care Centers and other changes made last year.
In January 2023, Walmart stated that U.S. workers would receive pay raises the following month, with starting wages ranging between $14 and $19 per hour, compared to the previous range of $12 to $18 per hour based on location.
