Opportunity

In Letter to Associates, Walmart CEO Doug McMillon Announces Higher Pay

Editor’s Note: Earlier today, Walmart CEO Doug McMillon sent this letter and video to our U.S. associates, outlining a new approach to the jobs we offer.

As many of you know, I’m really proud to have been a Walmart associate for a long time. This company has given so many of us opportunities beyond our wildest dreams. We joined Walmart because we wanted a job but found much more than that. This company is a really special place. One of the reasons we’ve had some success is that we’ve known that every person, every voice, every idea has potential. You’ve heard us say things like our secret to success is that we’re all working together and that “our people make the difference.” While that phrase started as a meeting theme in 1979, it became a way of thinking. It’s what we believe. It’s what I believe. Our actions must match our beliefs. So today, we’re announcing a series of important changes that demonstrate our commitment to you, our associates.

After all, we’re all associates. We have different roles at different times in our career and every one of them is important. Today’s cashiers will be tomorrow’s store or club managers. Today’s managers are tomorrow’s vice presidents. Tomorrow’s CEO will almost definitely come from inside our company. During our recent Walmart U.S. year beginning meeting, I asked all of those in the arena, more than 7,000 people, to stand if they started their Walmart career in an hourly role. It felt like almost everyone stood up. It was an emotional moment. It made the word opportunity real.  In fact, our statistics show that about 75% of our U.S. management teams began in an hourly role.

So, how do we make sure that each one of you has the same opportunity, or better, as those that came before?

It starts by making sure we’re setting you up for success. We need great store managers and assistant managers who know what they’re doing, care about you and know how to teach effectively. We need stores with the right tools and environment for you to thrive. I think you feel the same way.  When I’m out in stores today, one thing I hear from associates at all levels is that you want to be freed up and empowered to serve your customers better.  You also want to know that there’s opportunity here and that your hard work will be recognized and rewarded. Our business is pretty simple when we boil it all down; sometimes we make it too complicated.

I’ve seen us change a lot over the years. We’re always trying to do the right thing and build a stronger business. We frequently get it right but sometimes we don’t. When we don’t, we adjust.  In recent years we’ve had tough economic environments, a rapidly growing company, and fundamental shifts in how customers are shopping.  We also made a few changes aimed at productivity and efficiency that undermined the feeling of ownership some of you have for your business.  When we take a step back, it’s clear to me that one of our highest priorities must be to invest more in our people this year.

Today, we’re announcing a package of changes in Walmart U.S. that will kick off a new approach to our jobs.  We’re pursuing comprehensive changes to our hiring, training, compensation, and scheduling programs, as well as to our store structure, and these changes will be sustainable over the long term.  

One of the most immediate changes is that we’ll raise our starting pay, and we’ll provide opportunities for further raises based on performance.  For our current associates, we’ll start by raising our entry wage to at least $9 an hour in April, and, by February of next year, all current associates will earn at least $10 an hour.  I’m also excited about an innovative program we’re launching for future associates that will allow you to join Walmart at $9 an hour or more next year, receive skills-based training for six months, and then be guaranteed at least $10 an hour upon successful completion of that program.  We’re also strengthening our department manager roles and will raise the starting wage for some of these positions to at least $13 an hour this summer and at least $15 an hour early next year.  There will be no better place in retail to learn, grow, and build a career than Walmart.

Sam’s Club is also making some important changes today, specifically to starting wages. Around the world, we operate with the same set of beliefs, and we’ll continue to share what we learn across countries. Every associate matters.  

As important as a starting wage is, what’s even more important is opportunity, and we’ll continue to provide that ladder that any of you can climb.

I’ve seen it.  I’ve lived it.  And I want nothing more than for every Walmart associate today to feel that same connection to the company that I feel and to have the same opportunities I’ve had.  Let’s work together to serve our customers, grow our company, and take care of one another. 

Thanks for all you do.  You really do make the difference.


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Community

When Disaster Strikes, Associates Provide Real-Time Relief

When forecasting warned that record rainfall could be coming to Louisiana, a team at Walmart’s home office did what they always do when severe weather is imminent: Pull together the right people to prepare for help.

Because there are about 30 Walmart stores and Sam’s Club locations in the Baton Rouge area where the flooding eventually hit, the company’s Emergency Operations Center had a responsibility to local associates and communities. Logistics, operations, and merchandising teams assembled quickly, first mapping alternate routes for trucks delivering to stores in and around Louisiana and ramping up shipments of diapers, bottled water and other essentials.

While some stores and clubs closest to Baton Rouge did have to close their doors because of flood damage, most have reopened now. Ensuring that corporate functions and teams on the ground can work together to make that happen is at the heart of the EOC’s role.

Formed in the early 2000s following 9/11, Walmart’s EOC was established to support associates and local communities in times of need. Whether it’s securing generators to restore power to facilities or acting as a call center so that associates and community members can locate and assist one another, the EOC is the hub that helps Walmart locations provide a sense of normalcy when disaster strikes.

With the recent Louisiana flooding displacing thousands of people from their homes, Walmart and the Walmart Foundation have committed $1.5 million to organizations making a difference on the ground. Learn more about those efforts here.

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Opportunity

When an Obstacle Opens Doors to a Better Life

When I arrived in Pass Christian, Mississippi, in 2009, I knew putting down roots would come with its share of challenges. A native of Peru, I didn't speak much English and couldn't even help my 9-year-old daughter with her homework. But I was willing to do whatever it took as long as there was an opportunity.

Walmart store #5079 extended me that opportunity as a part-time associate in the deli. Being able to make a living in my new country not only motivated me to learn English, but also pursue my GED certificate so I could better provide for and assist my daughter. Looking back, doors have continued to open for me from the very first day I was hired. I’ve made lifelong friends, earned U.S. citizenship, been promoted to full-time training coordinator, and built a life I'd always envisioned – which includes long walks with my family along the Gulf Coast.

Today, my English – and confidence – have grown so much that I’m pursuing my new dream of becoming a human resources manager with Walmart. Taking inspiration from my store manager, Lynn Day, I’ve started working toward my associate degree through Walmart’s partnership with American Public University.

Encouragement and support from people like Lynn helps me continue to realize my goals. She’s such a great mentor to me – and that’s what I want to become for the people around me.

I believe that knowledge is power. And I believe if I have the knowledge, I have the power to help people.

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Sustainability

How One Small Farm Planted a Seed of Opportunity

For Juan Carlos Urquia, there was always an excitement associated with finishing his homework. It meant he could join his father on their small, 3-acre farm in the tiny rural community of Ocotal, almost three hours away from Tegucigalpa, the capital of Honduras.

As young as 5, he enjoyed helping his father raise and harvest corn, beans and cucumbers more than anything. He immediately sensed the responsibility of producing food people needed to survive. More than three decades later, Juan Carlos still finds joy in the field. Only, these days, his passion has evolved into an opportunity for his extended family and a growing number of others in the community to make a living.

Juan Carlos’ care and attention to detail sparked an opportunity to begin filling orders of several hundred cucumbers per week for Walmart in 2006. That opportunity has since grown to more than 25,000 cucumbers per week, and the family farm has spread to nearly 100 acres.

With access to stores across Honduras, Juan Carlos has created full-time jobs for 20 people, many of them siblings and cousins. And that has created work for nearly 100 others in the community who work to clean, process and transport the cucumbers, tomatoes and onions he grows, as well as those who supply fertilizer and other materials to sustain the operations.


The care was always there, even in the days when Juan Carlos was learning from his father. But, through support from Walmart and other organizations committed to delivering training and best practices to farmers in the areas of sustainable agriculture, efficiency and optimization, they’ve seized an opportunity. In fact, Honduran farmers sold more than $148 million in fruit, vegetables, grains, meats and other perishables to Walmart in 2015. This is equivalent to approximately 6.5% of the national agricultural gross domestic product and helped boost the country’s agricultural exports.

When Juan Carlos was a boy, he and his extended family all lived under his father’s roof. Through their commitment to the farm, he, his siblings and cousins all have their own homes today – and that’s something they’re extremely proud of. They're not just producing food. They're creating opportunity and raising the quality of life for those around them.

Small and medium-sized farmers around the world will be counted on to meet half the increased global demand for food and clothing through the year 2050, and Walmart has committed to specific goals to improve their livelihoods. You can read more about this work in our Global Responsibility Report.

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Opportunity

The Vision I Needed for My Dream Job

It may seem like an unlikely career path, going from working at the Auto Care Center at Walmart to becoming a professional eye doctor.

Ten years ago, I would never have guessed that I would be headed into optometry. Ten years ago, I didn’t even really know what optometry was.

What I did know was that Walmart offered its associates opportunities to experience different types of jobs throughout the company. So once I completed our Management Training Program, I worked in several different departments. Each of them was interesting in a unique way, but nothing felt like the perfect fit.

Then a friend mentioned an opening in the Vision Center, and it was like a lightning strike. I immediately knew this was the direction I wanted to take. A colleague who was mentoring me saw my excitement and urged me to go back to school. My wife and I talked about it over the next year, and finally I took the plunge.

Within two years I had become a licensed optician, able to dispense glasses and contact lenses. It was a big step, but I knew I wanted to go further. So we packed up everything and moved to Memphis, hoping that I would be accepted to The Southern College of Optometry. Sure enough, our faith paid off and now I’m an associate doctor of optometry – finally doing something I’m passionate about.

I love helping people. I love putting that first pair of glasses on a kid, and watching his or her eyes light up, being able to see clearly for the first time.

Even though I have a lot of responsibilities, I still have the flexibility to spend time with my family. I’ve been incredibly blessed. And I can say with complete honesty had I not had that job changing tires at Walmart, I would not be where I am today.

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