Walmart CEO Divulges Why the Company Raised Its Minimum Wage To $10

[applegrove]

Walmart CEO Divulges Why the Company Raised Its Minimum Wage To $10

BY BRYCE COVERT at Think Progress

http://thinkprogress.org/economy/2015/02/19/3624818/walmart-minimum-wage-sales/

"SNIP.................


On Thursday, Walmart announced that it would raise all employees’ base wages to at least $10 an hour by next year as well as increasing pay at other levels.

In an appearance on CNBC later that morning, CEO Doug McMillon explained how the company will measure whether its $1 billion investment in employee wages was worth it. When asked by the host what metric it will use, he replied, “Comp store sales.” He went on to explain, “It’ll play through retention, the ability to hire the talent that we need to hire… But ultimately, we want associates who are so excited about taking care of customers, thanking them for shopping with us, things like that, that’s got to show up in sales. Won’t happen immediately, but it will happen.”

The company’s sales have been hurt recently by empty shelves and low customer satisfaction, which has been linked to cutting staff numbers and keeping pay low.

McMillon may have surveyed the existing research to come to the conclusion that higher pay can increase employee retention and productivity. A recent survey of research from two economists found that raises at major American companies increase productivity and performance, enhance customer service, reduce turnover, and attract better job candidates. One study they looked at even found that more than half the cost of higher wages can be offset through these improvements. A different economist has also found that companies benefit from improved efficiency because they can ask employees to work harder and that higher wages make it easier to recruit and retain workers.


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[PoliticAverse]

1. So they figured out paying people more results in happier, better, more productive employees?

And that these employees are likely to stay in their jobs longer?

[applegrove]

2. Nice that they get to experiment with people's lives as to how little they can get away with paying

people.

[Omaha Steve]

3. $15 per hour gets them out of poverty like Costco does

This keeps them on public assistance!

Costco lets employees unionize IF they want to, instead of firing them.

[Scuba]

19. +1,000

[madokie]

20. Tulsa is getting a Costco and we can't wait

it'll be a 30 mile drive but we'll just keep a list of things we need or want and make that trip as the need arises. From time to time we go to Tulsa anyway so we'll combine those trips with the trip to Costco

[daleanime]

4. But there's no need to rush, right?

After all next years early enough.

[Fumesucker]

5. A hail Mary pass when absolutely nothing else has worked for them.

Falling profits (and the resultant executive bonuses) they are simply unable to stem is the only reason Walmart would raise wages.

[Newest Reality]

6. Talent?

Now it's American Idol. A game show? A retail play?

Will there be awards?

And now for the annual Walmart Talent Awards! One lucky entrant will win a stay at a Walton mansion.

Wow. Now that's a real marketing brilliance. Maybe they will change the titles of the slaves from associates to STARS!

Give it a few years. Magic happens when you are being pounded into a pulp of poverty by wealthy people who are never, ever going to be happy with what they have and don't have the fucking insight or intelligence to get that and see how that effects everyone else.

[pipoman]

9. In this case I think talent is

Deli workers who actually change their gloves occasionally....

[Newest Reality]

11. Yes.

And we have to love those deli workers who are there everyday to serve their master's wishes and needs for so little in return.

Actually, despite my parody, talent means pushing sales, obviously. What they want is SALES PEOPLE rather than just drones who work in misery and with nothing more than sustenance as compensation. Well, that and whatever taxpayers have to pay out to assure that they, and their families, don't starve to death.

[pipoman]

12. I have a hard time finding justification for endangering

people through laziness or because they are disgruntled...

[Newest Reality]

13. Well,

we both know that innovation and robotics will force everyone to reconsider the Protestant work ethic and the meaning of laziness, (especially when it is from one slave looking at a free person with contempt and disgust as projection) in the long-run.

People are what brings meaning to life and life to meaning. We are in a stage where the meaning of being is being devalued. Actually, we should even find question in the word "person" because it comes from the ancient term, "persona" and that relates to sounds made though a mask and is purely a matter of theater, essentially.

When we see that we are beings who take on a persona, then maybe we can get some where between here and the Universe at large. For now, it is the Walton's and their ilk, et al. Being convinced as we are that we are what we think we are is a way to get the same results, as history has proven again and again.

The question is, who told us who we are and how do we know they were right?

[pipoman]

17. I don't know

I just want some deli turkey cut on a clean slicer by an attendant who understands basic food safety....

[Lifelong Protester]

7. By next year?

Jeez-o-pete, what's the rush, eh?

[Gman]

8. Well....

DUUUUUHHHHHH!!!

[GP6971]

10. Throw in a little extra for the employees to buy their "uniform pants"..... Black or tan required.

Then maybe I'll be impressed............Nah.......not even close.

They are raising their pay scale to try to save their hides......nothing more.

[ladyVet]

21. I honestly don't get why people are so upset about that "uniform" thing.

No matter where you work, you're expected to wear certain kinds of clothing appropriate for the environment, and you buy it yourself. I'm sure there are some exceptions, where the employer may provide the uniform at no cost, but for the most part, you're on your own.

I mean, yes, certain colors are required, but they aren't anything you can't find at a thrift store: medium blue shirts (collars needed, such as a polo shirt) and black or khaki pants. I find a lot of nice things for my son to wear.

Target has the same requirements, by the way, except it's a red shirt and I think it's khaki only for the pants, but nobody seems to get up in arms about them (and they don't treat their employees any better, either).

I'm glad to see Wal Mart is raising wages, maybe my son will get another little boost as well.

[HeiressofBickworth]

14. Their wage policy is only ONE of the reasons I don't shop WalMart

They are simply a less-than-admirable company in all phases of their business. Wages for employees is only part of it. They pay starvation wages in hazardous conditions in 3rd-world countries where their goods are manufactured, they drive small businesses into failure in every location in which they locate, the Waltons are notoriously stingy with their charitable givings, despite being among the wealthiest 1% of the population. I simply can't think of any reason at all to ever walk into one of their places of business.

[kelliekat44]

15. I can't help but feel that the pressure from keeping wage disparity and the wealth gap played a role

as well as the boycotting and bad-mouthing of Walmart treatment of its employees.

[PumpkinAle]

16. And in the back rooms they have

also been working on how to screw over those employees - Walmart definitely gives with one hand and takes with the other.

[Wellstone ruled]

18. Nothing new for Big Box Retailers.

Lowes and Home Depot did similar things to help retain their employees a few years back. Only thing,it work for awhile until all the Rah Rah and Motivational Morning Huddles ran their courses. Next thing that happens is all the extra motivating are ditched to improve Profits and Share Price. Well well,suddenly the hours get cut and the store looks like shit,then comes the intimation about doing more with less and the Firings begin just to intimate the rest of the staff. Just a cycle of bullshit,and this will run it's course within 6 months. Now Target is going to follow with their wage thingee. When you jack your best customer,your employees every way know to man kind,you lose the game.

[Liberal In Texas]

22. Yeah, 'cause $10/hr. is such a great wage.

Really make those poor sods happy to work there.

[dembotoz]

23. it is when you are making $8 / hr

yes no where near enough i know but above the pathetically low minimum standard