Walmart to scrap quarterly bonuses for store workers
- Walmart is scrapping quarterly bonuses for store workers, per a Wall Street Journal report.
- The company said these bonuses would be folded into employees' wages to make compensation consistent.
- Last week, Walmart raised its minimum wage by $1.
Walmart is scrapping quarterly bonuses for store workers.
The retail giant told staff it would scrap the bonuses, known as "MyShare," at the end of the company's fiscal year, on January 31, 2022, according to an internal memo seen by The Wall Street Journal.
In the memo, Walmart said quarterly bonuses would be rolled into workers' base pay, per The Journal. A Walmart spokeswoman told The Journal that this would make compensation more consistent for workers.
Insider contacted Walmart for confirmation and further comment, but did not immediately hear back.
These quarterly bonuses have existed for decades, The Journal reported, and are determined by different metrics, including the performance of each store. For example, Q1 2020 MyShare bonuses were based on hours worked and store performance, according to a Walmart FAQ.
The news comes just one week after Walmart announced that it would raise its minimum wage from $11 an hour to $12 an hour, and raise wages for more than 565,000 store workers. These changes are due to come into force toward the end of the month.
The company said its overall average wage would reach $16.40 per hour for hourly workers.
Retail businesses across the US have been reviewing wages and offering new bonuses or perks to attract and retain workers in a tight labor market.
Walmart's $1 hourly raise doesn't put it ahead of the pack - rivals Amazon and Target already offer a $15 an hour minimum wage.