Sam’s Club, a membership-only warehouse club retail stores owned and operated by Walmart in the US, has announced a new compensation plan to enhance the financial stability of 100,000 frontline associates.
Effective from 2 November 2024, the initiative provides associates with a more predictable and sustainable financial future, accelerating hourly wages and establishing clear milestones for pay progression.
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Under the new scheme, associate hourly wages will see an expedited increase within their pay brackets, with increments ranging from 3% to 6% based on tenure.
This structured approach to pay raises is designed to offer associates a clearer long-term financial outlook.
The anticipated average hourly rate for Sam’s Club associates will exceed $19, coupled with the opportunity to earn substantial annual bonuses.
Since 2019, the average hourly wage at Sam’s Club has risen by almost 30%.
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By GlobalDataIn a LinkedIn post, Sam’s Club president and CEO Chris Nicholas stated:
“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.”
The new compensation plan is part of a broader strategy to enhance the overall work environment at Sam’s Club.
The company has embarked on a multi-year journey, focusing on improving wages and benefits, as well as providing advanced tools and technology to simplify tasks for associates.
Since 2019, more than a dozen distinct wage investments have been made, benefiting hourly and salaried associates across all levels and departments within the club.
