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>Earlier this year, Walmart raised its base wage $2, to $11 an hour, and expanded its maternity and family leave benefits Wow, raising the wage combined with t

• jcdavis 8y ago
  Because the economy has picked up and they have retention issues
• tsunamifury 8y ago
  They see the regulation going this way in several regions already, so they are getting out ahead of it and reaping the strategic and PR benefit.
  • ninjakeyboard 8y ago
    Seems like a reasonable assumption. They dominate everything everywhere - they have to maintain this position overtime by keeping mindshare as economic and environmental issues continue to tilt into the red.
  • tristor 8y ago
    This is exactly the answer. They're getting a head start to enable future regulatory capture to further entrench themselves in existing markets as smaller players are unable to deal with shifts in minimum wage.
• jeremyt 8y ago
  Because there’s suddenly a bunch of money available from the tax cuts.
  • s3r3nity 8y ago
    Don't know why you're getting down-voted - it's a reasonable hypothesis. Why wouldn't a corporation reinvest those tax benefits? I think that the likely culprit is a more competitive labor market in general, but there's no reason to outright reject the idea that the demand for labor could in part be driven by said tax cuts to a non-trivial extent.
    • sykh 8y ago
      I didn't downvote but jeremyt's statement is without evidence. It's certainly plausible that the statement could be correct but there really isn't any evidence given to support it.
      • reaperducer 8y ago
        > jeremyt's statement is without evidence The news has been full of dozens (maybe hundreds by now) of large and small companies using the tax change to increase employee wages and benefits. While there's currently no specific press release linking Wal-mart's actions with the tax change, it certainly isn't beyond the realm of possibility (and HN-class conclusion jumping).
        • sykh 8y ago
          I guess I read different news than you. I’ve read that most of the money is going toward stock buybacks. The pressure on wages is coming from a tighter labor market. That’s what I’ve read but I don’t know enough to say one way or the other. https://www.marketwatch.com/story/now-we-know-where-the-tax-cut-is-going-share-buybacks-2018-02-22 https://www.marketwatch.com/story/now-we-know-where-the-tax-... http://money.cnn.com/2018/02/09/news/companies/tax-cut-bonuses-buybacks/index.html http://money.cnn.com/2018/02/09/news/companies/tax-cut-bonus...
          • reaperducer 8y ago
            You are correct that there have been stock buybacks, as well. But I'm not sure it counts as "most." First, of the companies that are doing stock buybacks, not all are doing only stock buybacks. Many are doing other things as well. Second, there's a whole great big world out there called "local news" where you'll see these stories that aren't covered by CNN, Marketwatch, CNBC, etc... Yes, some big companies are doing stock buybacks, but there's a lot more going on in the business world than the Fortune 500.
• protomyth 8y ago
  If you actually think Walmart is the worst employer out there then you haven’t experienced the fun of local grocery stores and other small businesses.
• fullshark 8y ago
  They are afraid of Amazon, and realize customer service is going to be their competitive advantage now that they aren't, nor will be, the cheapest/most convenient destination into the future.
  • skellera 8y ago
    Not for everything but Walmart is cheaper on many things. Amazon used to be the cheapest but that is no longer the case. People just assume Amazon is the cheapest for some reason but they’re just the most convenient.
    • kinsomo 8y ago
      > People just assume Amazon is the cheapest for some reason They were for a long time, especially when they didn't collect sales tax. Many people just stopped comparison shopping and haven't realized the situation's changed. > but they’re just the most convenient. Not necessarily. Oddly enough, Best Buy is the most convenient for me (for electronics), and it's usually not any more expensive than Amazon, at least for the stuff I buy. Amazon less convenient due to the hassle with their delivery delays and packing materials.
      • finaliteration 8y ago
        > Best Buy is the most convenient for me (for electronics), and it's usually not any more expensive than Amazon They will also price match Amazon in most cases. I hear a lot of people complain about Best Buy but I’ve made a few big purchases at my local Best Buy store and their employees were super helpful and friendly. I’d much rather shop there and get the item immediately rather than wait two days, personally.
        • macNchz 8y ago
          I used to have a very low opinion of Best Buy but I’ve recently found myself going there for the majority of electronics I buy...no shipping or filtering through counterfeits like on Amazon, and there’s one that’s open 24/7 within walking distance of my office in NYC. Employees are friendly and helpful if not extraordinarily knowledgeable. Hard to beat on the convenience front.
• dsfyu404ed 8y ago
  They were never known as the worst among the kind of people who would consider working there. It sure beats being treated just as badly at somewhere else where the employee discount is far less useful.
• petra 8y ago
  Because they need to attract rich/middle-class shoppers to their site, in their fight against Amazon.
  • beauzero 8y ago
    I don't know about rich but they have seemed to hit it off in semi rural Georgia with "pickup" for groceries. We are in the grey zone for Amazon. Close to Atlanta...too far out for grocery delivery. ...and we need cars/trucks for commute, farm, school, etc. Not having to drive would significantly change the equation.
• lev99 8y ago
  >the kind of people who value that are unlikely to stop shopping at Walmart because of the negative PR Walmart isn't worried about losing the people shopping at Walmart. They just need to continue to sell cheap food, clothes, and household things in order to keep them. Walmart has always promoted from within. I bet very few people have worked part time in Walmart for 1+ year while going to college for a business degree and not been shortlisted for a promotion. The college subsidy will give them more managers with ground floor experience. Walmart is very concerned about how to grow their customer base. You see this with the 2day online shipping, site to store, and their grocery pickup program. The increase in wage is a direct attempt to increase employee retention and attract better employees. This is about growth, not loss prevention.
  • mieseratte 8y ago
    > Walmart has always promoted from within. I bet very few people have worked part time in Walmart for 1+ year while going to college for a business degree and not been shortlisted for a promotion. The college subsidy will give them more managers with ground floor experience. This was my immediate first thought, retention and loyalty. A few months ago my mother retired from Wal-Mart after working as a manager for 30+ years, and I've heard all the "fun" stories. Just about every trope regarding lazy, slack ass workers who routinely no-call-no-show, get fired, then somehow rehired six months later is true. There are good employees, to be sure, but they're greatly outnumbered by the unmotivated, and unwilling. I see this as a way to pull in and retain driven employees, no different than a software company sponsoring scholarships at a university and simultaneously offering internships / future employment. You'll select for the more driven, hard-charging folks and, hopefully, engender a positive opinion of your company in the eyes of the recipients.
    • gowld 8y ago
      > lazy, slack ass workers who routinely no-call-no-show, What about the lazy, slack ass management that routinely yank hours, refuse to give full-time hours that offer health insurance?
      • 8y ago
• dfxm12 8y ago
  I wonder why they suddenly care? Walmart's stock is up 2% so far. I think that's what they always have cared about the most.
• sridca 8y ago
  I wonder how if this would have any effect on the racial makeup of their employees. Currently: > Nearly 46% of Walmart’s 1.5 million US workers are African American. http://changewalmart.org/issues/african-americans/ http://changewalmart.org/issues/african-americans/
• zamber 8y ago
  It looks like an ongoing trends in that market. People started caring about people they interface with so your local (but a global) discount shop needs to jump as high as they can to cater to the compassion weak point. Bad PR is effective and this is how you fight it. IMHO it's a step in the right direction. Corpos are soulless and people vote with money. Take your $ somewhere else and they'll try to meet the bar. Amazon's tough love is also well-known at least from what I've read so having an upper hand over them may sway the lazy but compassionate crowd to take a ride to Walmart, not amazon.com.
• TangoTrotFox 8y ago
  Excepting a single month in 2000, the US unemployment rate is at its lowest since the late 60s and the economy is booming like crazy. Walmart requires more employees than any other company, and is simultaneously also seen as, and probably is, one of the worst possible companies to work for. They're going to suffer major retention issues and end up scraping the bottom of the barrel in terms of employee quality. I don't think it has anything to do with image. Just basic market dynamics. They need more, better, and more reliable employees. So they're offering a better value. That, or one of the Waltons has decided to get in on this sweet presidenting business and they're tossing a few bones out for 2020.
  • ihsw2 8y ago
    They already scrape the bottom of the barrel, as others mentioned this looks more like a way to keep those on an upward career trajectory from becoming flight risks.
• s73v3r_ 8y ago
  I wonder if they weren't pressured to do so after the tax bill passed. One of the big justifications for it is that companies would have more money to spend on their employees.
• mathattack 8y ago
  They care because unemployment is low.
• dawnerd 8y ago
  Their neighborhood market stores are pretty much all self service now. Nearest one to be only has one checkout lane - the rest are self checkout. Theres drive and pickup groceries. Since they need a lot less staff they probably figure they can pay and offer a little more benefits to help improve their public image. I'd say its working too, I've been going a lot more. Their mobile pay with automatic price matching is excellent. Worth noting the Fred Meyer nearby is also going the same direction. They just installed a ton of self checkout lanes and it seriously works well too. The store was absolutely packed this last weekend but there was hardly a wait to checkout.
• deleted 8y ago
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• floatingatoll 8y ago
  Regional governments have started discussing wage-shifting prevention — wherein Walmart workers must receive low-income benefits such as food stamps due to excessively low wages. By paying workers a wage sufficient to get them off of benefits, they make conversations around charging Walmart a penalty or removing local tax exemptions or etc. politically unviable.
• zamalek 8y ago
  > I wonder why they suddenly care? You would think it a silly idea: educating people into certifications that overqualify them and likely lead to their exit to greener pastures. There is the other end of the pipe to consider: students leaving high school would see Walmart employment as a way to afford their education - providing an everlasting stream of new employees. In addition, Walmart relies on successful innovators to stock their shelves with compelling products. This is selfish positive sum reasoning[1], where doing good ironically results in more for you. That's my best guess, at least. [1]: https://youtu.be/rvskMHn0sqQ https://youtu.be/rvskMHn0sqQ
  • tracker1 8y ago
    You overestimate the number of people willing and able to use this program compared to the paths to promotion. A lot of people will not take advantage, and will not complete their program. Most private colleges have their pricing structure set so that most people run out of various funding programs before they even graduate (generally at 2.5-3 years in). So, if 10% of employees start, less than 1% will finish. I think there's probably more than enough room for 1% of their employees to move up. Also, great PR form.