$500 Billion in Profits and This Retailer is Taking Money From Hourly Workers
Right. Because, of course.
There are some perks to working a mind-numbing, repetitive job. We can harness our creativity for other activities. We can operate a side hustle during our time off. And, let’s be honest, we’ll need a side hustle because that mind-numbing job probably won’t pay us too well.
In my retail career, I did everything. I processed shipment, stocked shelves, and processed online orders. None of it was difficult, but pace was essential. Speed is a learned skill like any other. Speed, accuracy, and flexibility are what matter the most.
In these days of omni-channel retail, companies need people who can do this work more than ever. They need all the people with speed and accuracy. So, why is the largest retailer in the US, Walmart, cutting back on their starting pay?
One Dollar
CNBC reports that the colossal Walmart, which made nearly $500 billion in 2022, is slashing its starting hourly pay for store positions for employees who stock shelves and process online orders.
Newly hired employees now make one dollar less an hour than if hired earlier this year.
One dollar. They’re taking away one dollar an hour from the people in the working world who need it the most.
This decision is in opposition to what the company had done previously. Walmart hiked wages in January from $12 to $14 an hour. The labor market was tight back then, and Walmart’s pay lagged behind its competitors.
The following is the statement by the company:
“Consistent starting pay results in consistent staffing and better customer service while also creating new opportunities for associates to gain new skills from experience across the store and lay the groundwork for their career regardless of where they start.”
Let’s be honest; this word-salad corporate statement doesn’t mean anything.
Do you know what else would result in “consistent staffing, better customer service, and growth within your company”? Higher hourly wages.
I’ll say it again for the CEOs in the back: offer people higher hourly wages.
It’s unconscionable that an organization that makes $500 billion a year would pull back hourly pay from their employees who need it the most. But here we are. Again.
Billionaires take from the people who have the least and call it a business decision.
If you want people to work repetitive, entry-level jobs, pay them a living wage. Show them you appreciate them. Show them with money. More money in their bank accounts means autonomy, dedication, and more money to spend at your store, you stupid idiots.
But, what do I know? I just led teams in the frontlines of retail for over two decades.
Keep your heads up, retail people. Keep your eyes open and work where you are valued.
MAILBOX
I got this message recently -
“Hi. Can I call you later today? I have a question.”
No. My answer was no. I don’t know this person. So, no.
I responded kindly and answered their question via DM.
Be fiercely protective of your time. No one else will do it for you.
LEVEL UP
One thing you can do today to be a better leader.
Model what matters to you.
Is being on time important? Be five minutes early.
Do you want your leaders to leave more written communication? You have to do it, too.
Do you expect your cashiers to sell a membership program? Do it every time you ring.
If people don’t see you doing what you ask of them, they won’t do it. It doesn’t matter how often or how nicely you ask.
When you show up and do the work yourself, it hits home, and your team will contribute on the same level.
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Outrageous! Word salad it most appallingly is. Beyond wrong. Thanks for the article and fighting the good fight.
Problem is they can afford the fines (if there's any at all). The consequences should be proportional to the side of the business, but they usually don't have to pay for mistreating people. They only need to hide it well next time 😔