Sam’s Club is establishing new workforce compensation and career mapping programs designed to strengthen staffing at a time when getting and keeping employees has been a challenge for retailers.
Sam’s Club stated that, in an increasingly competitive retail landscape, attracting, hiring and retaining quality talent has become a competitive advantage. Solid jobs and attractive career prospects can 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 Sam’s Club customer experiences, the Walmart banner noted. More engaged workers are more productive, provide better service and are more likely to stay, especially in retail, where turnover in 2022 averaged 60%, Sam’s reported.
Under Sam’s Club’s new plan, employee hourly wages will progress faster within their pay range, boosting the increase to between 3% and 6% based on years of service. The plan sets predictable pay increase milestones that can give employees a longer-term perspective on their financial futures. Sam’s Club intends for the new compensation investments to elevate average hourly pay rate for its employees to more than $19, and staffers have the potential to earn thousands of dollars annually in bonuses. During the past five years, Sam’s Club’s average hourly wage has increased by almost 30%, according to the retailer.
Sam’s Points out three of four salaried managers began as hourly employees. During the past five years, the number of hourly staffers promoted to salaried positions has increased nearly 400%. In moves to provide employees with career road maps, Sam’s has implemented block schedules for full-time employees to provide them better work/life balance with consistent weekly schedules. The company also has increased its proportion of full-time workers by 11% so more associates can reach full 40-hour weeks.
The company has introduced technology such as Me@Sams, a mobile app, to help associates navigate their pay, discounts, learning opportunities and benefits. In addition, Sam’s has assembled workgroups to broaden departmental cross-training and simplify the types of roles by more than 60%.
“At Sam’s Club, we believe delivering an unparalleled experience for our members starts with investing in our frontline associates,” Chris Nicholas, president and CEO of Sam’s Club said initially 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.”
