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

The Delivery That Saved the Day for One Florence-Affected Community

Fielding phone calls. Answering emails. Organizing an airlift. Just a typical day for your average Walmart market assistant.

On Sept. 18, Misty Amos, who works as an assistant for Walmart stores in the Eastern region, received a call from Walmart’s Emergency Operations Center.

Days before, Hurricane Florence had ripped through North Carolina’s coast. With flood waters rising, over a hundred people had evacuated their homes and found refuge in a shelter in Fairmont, North Carolina. One problem: The surrounding roads were flooded, leaving the shelter completely cut off from food and supplies.

The 145th Airlift Wing of North Carolina’s Air National Guard had decided to deliver much-needed goods to the shelter via Blackhawk helicopter, but they needed supplies. They called Walmart for help, and that’s where Misty came in.

Misty’s Market Manager was out of the office leading a team of associates who were helping a local store return to normal so when the National Guard request came her way, it was up to Misty to help mobilize associates to help on the ground. She worked with a local store manager to collect supplies for 130 men, women, and children – including a 4-week-old infant who was refusing formula but would accept whole milk.

First, the associates at store 2058 in Raleigh loaded up carts with food, toiletries, underwear and baby supplies. They were even able to find shelf-stable whole milk for the baby. The team boxed the items, grouped the merchandise into pallets, and loaded it all into a U-Haul, which they then delivered to the Air National Guard at Raleigh-Durham Airport.

Meanwhile, a local Sam’s Club was also on the case. Club associates moved with speed to load a Red Cross vehicle with donations for the shelter.

Wait, were the Walmart store and Sam’s Club duplicating efforts? Was there going to be more merchandise than the helicopter could handle?

No problem, said the Guard unit. We’ll just organize a second drop.

It’s a good thing they did. Right before the second chopper took off to make the delivery, the Red Cross reached out to say that not too far from the shelter, a medical facility was in desperate need of blood donations. The Red Cross was able to add blood supplies to store and club donations, and the helicopter made a slight detour to deliver blood, too.

Maybe the most surprising part of this story? This whole mission – from the time the call came into the Emergency Operations Center to the time the helicopter touched down in Fairmont – took four hours.

Yes, you read that right. Four hours.

This is just one example of partnership during this multi-state disaster. Misty set her coworkers into action, and by working cross-functionally with the public sector and NGOs such as the American Red Cross, Walmart associates were able to make a meaningful difference to neighbors who had suffered unimaginable loss.

Misty and her team were able to deliver a bit of dignity to the families at the shelter. When asked about the airlift, the 23-year associate downplays her efforts. Having worked for the company during Hurricanes Katrina, Harvey, and Maria, she knows disaster recovery has become an integral part to the way we do business.

“We’re Walmart,” she says, “It’s just what we do.”

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Opportunity

Ride Along with Allyson, One of Walmart’s ‘Elite Fleet’ Truck Drivers

Allyson “Cadillac” Hay is at home behind the wheel. In her 17 years as a Walmart truck driver, she’s traveled more than 1 million miles of asphalt, carrying load after load of the products we sell in our stores and online.

Associate Kyle Jones recently rode along with Allyson to get a feel for what it’s like to be a part of the company’s best-in-class private fleet. Allyson’s passion for what she does makes it clear that to her, driving is more than a job – even more than a career. It’s a lifestyle that keeps her going.

Watch the video below to see how Allyson fills her time in the driver’s seat and what she loves most about being a Walmart trucker. Then check out our post about our world-class fleet, the unsung heroes of the road.


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Innovation

How VR is Transforming the Way We Train Associates

If you’ve ever tried on a virtual reality (VR) headset, you’re familiar with its ability to recreate real-life experiences. Even a rollercoaster ride simulation has the potential to make your stomach drop.

VR tech has taken everything from journalism to pro football quarterback training to the next level. And last year, Walmart introduced VR to the world of employee training and development by using the technology to upgrade training at Walmart Academies nationwide. With the huge success of that program, the company is now providing Oculus VR headsets to all stores in the U.S. to bring the same level of training to more than 1 million Walmart associates.

“The great thing about VR is its ability to make learning experiential,” said Andy Trainor, Walmart’s senior director of Walmart U.S. Academies. “When you watch a module through the headset, your brain feels like you actually experienced a situation. We’ve also seen that VR training boosts confidence and retention while improving test scores 10 to 15 percent – even those associates who simply watched others experience the training saw the same retention boosts.”

Starting next month, VR training will begin its launch across the country, sending four headsets to every Walmart supercenter and two units to every Neighborhood Market and discount store. With more than 17,000 Oculus Go headsets in stores by the end of the year, every associate – including those on the floor who interact with customers the most – will have access to the same training that their managers and department managers do at the Academies.

Brock McKeel, senior director of digital operations, worked with Andy to bring VR training to associates, and said there are already more than 45 activity-based modules using industry-leading software provided by STRIVR. STRIVR’s platform delivers realistic, repeatable and scalable training content, which helps associates learn information more quickly and retain it better.

“We are entering a new era of learning, and Walmart continues to lead the way,” said Derek Belch, CEO of STRIVR, which worked with Walmart on its initial launch of VR in Academies last year. “The power of VR is real, and when offered as a cornerstone of learning and development, it can truly transform the way an organization trains its people.”

Walmart plans to use VR to train associates in three main areas: new technology, soft skills like empathy and customer service, and compliance.

VR training is particularly helpful for learning new tech. In a pilot test this summer, 10 stores used VR for training on new Pickup Tower units in their stores. VR is allowing associates to be trained before the towers are even installed – no teachers required. This will be key as Walmart continues to roll out new tech to stores.

Adrian Carthen used the VR training to learn about the Pickup Tower when it came to her store in Stockbridge, Ga., this summer. She said it “went beyond hands-on.”

“I’m a gamer, so I was excited to use it,” she said. “It felt like you were actually loading the tower. And I could train any time that I wanted and it was done in just a few minutes."

Instilling confidence is exactly what makes VR so effective as a training tool. Because the effect of VR training is like an experience in real life, associates have the freedom to make mistakes and learn by “doing,” all while in a safe environment.

“Walmart was one of the first companies to benefit from VR’s ability to enrich employee education, and its applications will only grow from here,” said Andy Mathis, Oculus’ head of business partnerships. “What makes it so compelling is that costly, difficult, or otherwise-impossible scenarios and simulations become not only possible, but immediately within reach.”

But beyond the investment in innovation and associate training, VR technology helps teach skills that enrich the careers of associates across the U.S.

“Yes, we’re focused on helping people do their jobs better every day. But the training we’ve designed is also hopefully training for life,” McKeel said. “That person walks out of their store with new skills and more confidence than they had before – that’s the passion behind this project.”

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Innovation

Walmart’s Custom Apps are Enabling a Workplace Refresh

The moment Rissa Pittman walks through the doors of her Walmart supercenter in Rogers, Arkansas, it’s her responsibility to choreograph all the moving parts that make up a great shopping experience.

Like all store managers, making sure she has the right people on her team is the biggest part of that success. But ensuring they’ve got the right tools to do their jobs is a close second.

Walmart recently introduced a suite of custom-built apps for associates to use in-store, allowing them to manage a variety of routine activities directly from a mobile store device. From the moment a product arrives in the back room to the second a customer finds it on the shelf, an ecosystem of data gives associates new visibility that helps them make informed decisions quickly, thus allowing them to take on more ownership of their work.

They’re also a huge benefit for customers. With associates equipped to work smarter on the sales floor and behind the scenes, these apps give shoppers the benefit of even faster service and more personalized attention when they go to a store. I visited Rissa and her team to see how they’re using these apps to take customer service into the future.

PlanIT
We’ll start with Rissa’s favorite: the PlanIT App. Basically, it’s the information hub that associates use to stay up-to-date on company and store announcements.

“Running a Walmart store takes a lot of skill,” Rissa said, “and PlanIT gets us organized, prioritized and connected.”

PlanIT helps store managers focus on efficiency. They can use the app to notify department managers of projects that need to be done that day and specific tasks required. The app also empowers all associates to receive information directly from Walmart’s home office that was previously provided only to management.

The Receiving App
With the simple scan of a truck ID, the Receiving app tells back room associates exactly which products have just arrived at the store. Not only does this eliminate time previously spent manually reviewing inventory, it also simplifies the planning process required to know which items need to head to the sales floor.

“One of the biggest parts of great customer service is making sure the right merchandise is on the shelf when customers need it,” Rissa said. “This entire process, and making sure that it’s done right, starts in the back room.”

The Downstock App
Once merchandise is on the shelf, associates need to make sure it’s available throughout the day for customers to find. You may have seen our Bossa Nova shelf scanner, technology that roams the aisles, automatically gathering data to identify items that are out of stock and where to find them in the store. That information is then directly sent to associates through the Downstock app, eliminating the amount of time spent on mundane tasks and allowing more time to be spent helping customers find what they need.

The Price Change App
Price changing is another time-consuming task that we’ve addressed, one that sometimes required associates to spend minutes walking back and forth between aisles to locate items. With the Price Change app, information about product price changes are categorized by aisle so that associates receive them in the order they should be made, creating an efficient path through the store. Accurate pricing allows customers to make informed decisions on the products they want, and the Price Change app increases accuracy while drastically minimizing the time associates spend on the task.

The Availability App
The Availability app gives associates insight into how their store is performing over time. It automates information about products that are out of stock and shows the associate specifically what time the out-of-stock occurred. Knowing this lets associates compare the store’s performance before and after outs occur and determines the root cause – such as staffing issues, shelf capacity or product availability.

“Our leadership tells us all the time that we should feel empowered to become merchants in our stores,” Rissa said. “The Availability app helps associates understand their merchandise and their customers better.”

The Claims App
When customers return a product to the store, there are a number of options associates have for handling the merchandise. The Claims app outlines the best options available for a product, in the order they should be considered. More specifically, can the product be sold at a clearance price, can it be donated or does it need to be disposed of? The app removes the guesswork out of managing returned products.

“It makes it simple to stay in line with our health and safety standards,” Rissa said, “and even helps our store reduce waste because we know exactly which items can and can’t be donated to food shelters.”

The Sales App
The Sales app updates a store’s sales numbers in real time so that associates know how their designated areas are performing against the previous year, down to specific products. With information about top-selling categories in each department, associates are motivated to track their accomplishments so they can stay competitive with other stores in their market.

A Custom Ecosystem of Data
Sharing more information with associates empowers them to make smarter, quicker decisions in their stores. The end result? People who have the tools to own their work – and more customers who walk away satisfied. For Rissa and other store managers, staying connected throughout the day makes it easier to run a more efficient store.

“These apps are about efficiency and organization. Running a Walmart store takes a lot of skill, but with the apps provided to our associates, we’re better connected to everything we need to be.”

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