Walmart Changes Pay Structure For New Entry-Level Store Workers

Under this revised structure, most newly hired workers will receive the minimum possible hourly wage for their respective stores. Walmart's minimum hourly wage is $14.

Earlier, certain new hires, like those involved in online order item collection, received slightly higher wages than others, such as cashiers.

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Walmart has changed the hourly wage structure for new entry-level store workers in a bid to reduce costs as the US job market shows down, reported the Wall Street Journal. The new wage structure is expected to result in lower pay for new store employees, compared to three months ago.

Under this revised structure, most newly hired workers will receive the minimum possible hourly wage for their respective stores. Earlier, certain new hires, like those involved in online order item collection, received slightly higher wages than others, such as cashiers. A Walmart spokesperson confirmed the development to the Wall Street Journal on Thursday. 

The company spokesperson said that the latest changes mean that store workers including cashiers, personal shoppers, stockers, self-checkout helpers, and associates manning departments such as sporting goods or electronics will all receive the same hourly starting wages that are paid at the store, instead of different levels previously. She added that the new wage structure will not change Walmart's minimum hourly wage of $14 or result in any pay cuts for existing employees. 

However, according to the report, the minimum hourly wage varies by region starting at $17 in some locations. The changes mean paying some new store workers less than it would have three months ago. 

Notably, Walmart contends that this modification in pay structure allows workers to switch between various work groups, such as those in food, registers, stocking, or digital fulfillment, without any adverse impact on their pay, the report said.

The development coincides with the backdrop of slowing US job growth data for August, the report said, reflecting the labor market's response to significant interest rate increases by the US Federal Reserve. 

In response to heightened staff shortages during the COVID-19 pandemic, especially in grocery stores, healthcare, and various professional sectors, Walmart has undertaken several pay adjustments for its hourly workforce. These measures included raising the minimum wage and offering pay hikes and bonuses for roles such as truck drivers, where there has been a notable demand for additional workers, the report noted. 

With the new wage structure, Walmart has also implemented various other initiatives in recent years to reduce labor costs, such as expanding the use of self-checkout options in stores and introducing automation or partial automation in its warehouses.