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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Business

Meet the Families Behind Our Grass-Fed Beef

They say you are what you eat.

When we shop to feed our families, we’re especially concerned with what’s in the food we’re buying and where it came from. Thanks to two cattle ranching families who came together years ago to farm grass-fed beef in Utah and Wyoming, we’re able to provide this option – our Marketside Butcher brand – at over 2,000 of our stores.

It’s important to do business with people who care about their customers as much as we do. Working with Jones Creek, that care is obvious. The Crandall family has been farming cattle on their ranches in Utah and Wyoming for over five generations, and they’re committed to a product that’s as natural as it is tasty.

Check out this video to see why they believe in producing beef with no added hormones or antibiotics, but lots of passion and care.

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Opportunity

These Vets Helped Each Other - Now They Pay it Forward

For veterans leaving the military, transitioning to civilian life can be a challenge, but Jarred Crabtree and Jeff Kowalik are determined to make it a little bit easier.

The two met in the U.S. Army, where Jeff was Jarred’s lead drill sergeant in basic training. An injury sent Jarred home earlier than he’d anticipated, but the two kept in touch over social media. When Jarred learned his former drill sergeant was leaving the Army, he knew he had to reach out.

Jarred had made the transition from military to civilian life twice before. After a time in the Army and seven years in law enforcement, he had become a market manager for Walmart’s Oklahoma City stores. He was still at Walmart when he rejoined the Army and met Jeff in 2010.

“When I injured myself, it was devastating,” Jarred said. “But the group of veterans when I came back was so supportive, I immediately felt better – like I could put all my energy and skills back into my job here.”

After 18 years in the Army, Jeff was medically retired and having the all-too-common experience of struggling to find...

Posted by Walmart Today on Sunday, July 30, 2017

Jarred wanted other veterans to experience the same kind of support and community he had, so he invited Jeff to come tour one of his stores in Oklahoma City, where they had several developmental co-manager positions open.

“I couldn’t think of anyone better for the role,” Jarred said. “I remembered Jeff’s leadership skills and his ability to lead diverse groups of people. He had the skill sets we needed.”

During his 18 years in the Army, Jeff had never had to look for a job. “When you leave the military, you have to remember how to do everything again,” he said. At Walmart, Jeff had to learn a new lingo and a new role, but he said it goes hand in hand with what he learned in the military. “The leadership, how hard you have to work, the service – there’s an honor behind what you do here.”

Jeff and Jarred are passionate about having other veterans join their teams at Walmart. They know the value veterans bring: professionalism, adaptability, teamwork, problem solving and ingrained leadership skills.

“If you want a job, all you have to do is come apply. You don’t have to start at the top, but with dedication and hard work, you’re going to move up,” Jarred said. “There’s so much opportunity, and it’s not just on the sales floor. With all the positions we have, whether it’s in operations, support, merchandising – when people realize what’s available, they’re amazed. You can lead people, and that’s what Jeff and I get to do every day.”

Now, Jeff mentors his team members at Walmart and in the broader veteran community. He works with the Veteran Support Foundation, which supports various veteran projects across the country, including helping homeless and disabled service members. He also maintains the veterans’ appreciation board at the front of his store, a photo display that recognizes associates who have served in any of the military branches.

“There’s a brotherhood and sisterhood that ties you together,” Jeff said. “When I came to Walmart, it was extremely heartwarming to know I had someone like Jarred, who was also military and also a leader above me who I could learn from.”

Jeff and his family have since moved to Houston, where he’s a co-manager of a Walmart supercenter, and his wife Jennifer is an assistant manager at another supercenter nearby. Meanwhile, Jarred was promoted to a director of implementation and sustainment. That means he’s now the main point of contact for Walmart’s central division of stores to ensure they’re operating successfully. But both veterans are taking what they learned and continuing to encourage other veterans around the country.

“Don’t give up,” Jarred said. “That’s the biggest message I’d want to get across to other veterans: there’s something out there for you. Ask questions. Don’t just apply online – come visit the store. Come talk to us, because you’ll find more people like me and Jeff who want you working with us.”

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Innovation

The Opioid Epidemic Has Changed Safe Disposal of Prescriptions

The opioid epidemic is as serious of a drug crisis as America’s ever seen. It’s so deep-reaching that nearly every community has felt its effects.

And while prescription pain medications are an appropriate treatment option for some, the reality is that unchecked supplies in the public pose a significant health concern. Just as prescription drugs should be prescribed carefully, they must be stored and disposed of carefully.

Providing a means for proper drug disposal is a fundamental way Walmart can help. Today, we announced a new, free, convenient solution for responsible opioid disposal, DisposeRx. It’s a first-of-its-kind solution and I’m so proud of our team and the work they’ve done to bring this simple means of disposal to our patients.

We know the person who was prescribed a prescription opioid medication isn’t always the only one who is at risk for misuse. This innovative option for medication disposal will help keep families and communities healthy, and DisposeRx is one more way we can make a difference.

Here are a few more reasons why we wanted to help with this critical issue.

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Business

CEO Doug McMillon's Note to Associates on Tax Savings

Happy New Year! I hope you and your families had a great holiday season. Thank you so much for all your efforts to serve our customers during our busiest time of the year. I know there were many smiling faces on Christmas morning and throughout the season because of you. Thank you for serving them so well and for helping each other to do it as a team.

We’ve got some really good news to share today. As you know, the President and Congress have approved a lower business tax rate. Given these changes, we have an opportunity to accelerate a few pieces of our investment plan. We plan to continue investing in you, in our customers through lower prices, and in our future--especially in technology to help improve your jobs and the experience for our customers.

So, we’re pleased to tell you that we’re raising our starting wage to $11 an hour for Walmart U.S., Sam’s Club, Supply Chain, eCommerce and Home Office hourly associates effective in February.

We’re also providing a one-time bonus to hourly associates that pays a larger amount the longer you’ve been with our company. Associates that don’t benefit from the new starting wage increase are eligible for the bonus and it will range from $200 to $1,000 depending on your length of service. As an associate who’s been with the company more than 25 years, I understand the value of experience and we all appreciate those of you that have helped build this company over the years.

I’m also excited to tell you that we’re making an important change to benefits by expanding our paid leave policy to provide full-time hourly associates with 10 weeks of paid maternity leave and six weeks of paid parental leave. This expanded parental leave also applies to salaried associates and to parents who adopt. We will also contribute $5,000 to the cost of adoption. I recently heard from two associates on this topic—one through an open door note and one at a town hall. Both pointed out how limited our policy was for adoptive parents so we’re happy to be addressing that concern now. Families are a priority to us and connecting with and caring for a new family member is obviously important.

As we look to the future and how we’ll win with customers, we’ll be assessing what additional investments are needed, and we’ll make those decisions with you, our customers, and our shareholders in mind.

Thanks again for everything you do. I’m proud of our progress and we have momentum. Let’s build on that in 2018!

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