Walmart Awarded $200 Million to Hourly Workers for the Satisfactory Performance


Wal-Mart Stores, Inc. (NYSE:WMT) announced on Wednesday that it paid over $200 million in cash bonus to hourly workers in the second quarter for the satisfactory performance.

The company said 99% of its stores met expectations in customer service, cleanliness and quicker checkout in the second quarter, and also reported a better performance in August.

The satisfactory performance was benefited from lifting wages earlier this year. Workers paid more attention to helping customers finding goods, stocking shelves and produce quality, and the better customer service paid back in the second quarter.

Spokesman of Walmart said that target of the company was higher sales two years ago, but in the past two years, company turned to paying more attention on the customer services.

This year, 932,000 employees of Walmart was awarded quarterly cash bonus, increasing from 687,000 workers last year and 880,000 employees in the second quarter of 2016. The average bonus for each employee was about $220, and up to 5% of its total annual income.

“It’s the tiny, noticeable things that should be in our DNA,” said Judith McKenna, the Chief Operating Officer of Walmart. “Giving away a smile costs nothing — people want to feel good.”

In addition to paying cash bonus to workers, Walmart announced cutting around 7,000 back-office positions, which was primarily in accounting and invoicing in the United States, in early September. The company said that employees that was influenced by the elimination will be positioned in more customer-facing jobs.

Shares of Walmart were up to $72.29 per share in early trading Wednesday, but decreased 0.49% to $71.62 per share in the afternoon session.

Leave a Comment