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Walmart Inc.
WMT,
is phasing out its decades-old quarterly bonuses for store workers, according to the company, as the retailer implements hourly wage increases for hundreds of thousands of its employees.
Walmart said it would scrap the benefit, dubbed “MyShare,” at the end of the company’s fiscal year on Jan. 31, 2022, according to a memo sent to staff discussing coming wage increases. “We are rolling MyShare into associates’ base pay going forward,” the memo said.
A Walmart spokeswoman said most workers say their hourly wage is the most important part of their pay, and that folding the bonus into wages increases the amount of consistent, predictable income. She said the quarterly bonus makes up just a portion of the pay increase workers are receiving.
The bonuses have been part of Walmart store workers’ potential compensation for decades. Early on, Walmart distributed the bonuses annually based on store performance. Over the years the retailer has used a variety of metrics, including attendance or store-theft level, to determine the payout. Walmart moved the bonus to a quarterly structure in 2007. In some quarters, a store’s performance doesn’t qualify workers for a bonus.
An expanded version of this article appears on WSJ.com.
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