Sam's Club, membership-only warehouse Owned by WalmartIncreasing the wages of approximately 100,000 frontline workers.
The company has created a road map for associates so they can “plan for and pursue a more predictable, long-term financial future.” This can be seen as a way to boost and retain its existing workforce in a highly competitive retail environment.
Sam's Club said occupancy at retail will average 60% in 2022.
Under Sam's Club's new plan, “hourly wages will grow steadily across their pay range, with increases ranging between 3% and 6% based on years of service.” The average hourly rate for Sam's Club associates is projected to be more than $19. The company also announced that it is also giving associates “the potential to earn thousands of dollars annually in bonuses.”
Pay raises help keep employees engaged and increase the likelihood that they will stay with the company. According to Sam's Club, the main reason customers renew their membership is because of their experience with associates.
Sam's Club's average hourly wage has increased nearly 30% over the past five years.
“Our new approach is one step in a series of investments we've made in our people over the past several years, designed to provide more meaningful jobs and build successful teams,” Sam's Club CEO Chris Nicholas said in a statement.
The wage hike announcement comes as retailers have begun preparing for the busy holiday season, including expanding their workforce.
Target and Aldi, for example, have already announced hiring plans, anticipating an increase in shoppers throughout the season.
