Retail behemoth Walmart will be phasing out quarterly bonuses and instead rolling it into associates’ base pay, the company confirmed to The Hill in a statement.
The Wall Street Journal, which first reported the news, said that Walmart informed employees in a memo that the quarterly bonuses, referred to as “MyShare,” will end on Jan. 31.
“It’s important to point out that the quarterly bonus makes up just a portion of the pay raise associates are getting," a Walmart spokesperson told The Hill in a statement. "Those bonuses vary each quarter because they’re based on sales for a specific store.”
“The overwhelming majority of our associates say their hourly wage is the most important part of their pay and by folding the bonus into the overall pay raise, associates receive consistent, predictable pay,” the spokesperson added.
The Journal noted that while Walmart has implemented bonuses for decades, it was not until 2007 that the retail chain doled them out quarterly.
Employers in almost every sector have been upping wages and incentives to attract potential employees to their stores amid a national worker shortage caused by the COVID-19 pandemic.
Last week, Walmart announced that it was raising the pay of more than 500,000 employees by at least a dollar, according to Reuters. The chain’s U.S. CEO, John Furner, told staff in a memo that the average hourly wage for Walmart employees was now $16.40.
Additionally, the chain said last week that it was hiring 20,000 new associates at distribution centers, fulfillment centers and transportation offices, touting an average wage for supply chain associates of $20.37 per hour ahead of a busy holiday season in the next few months.