Sam's Club Boosting Pay For 100K Workers
Sam’s Club said it is taking a new approach to workforce compensation, revealing a plan that will accelerate pay for nearly 100,000 frontline workers while also providing a roadmap for employees to plan and pursue more predictable, longer-term financial futures.
Under the warehouse club’s plan, associate hourly wages will progress faster in their pay range, expanding the increase to between 3% and 6% based on years of service. According to Sam’s Club, the initiative sets predictable pay increase milestones to give associates a longer-term perspective on their financial futures. As a result, the average hourly rate for employees of the retailer is anticipated to be above $19, with the potential to earn thousands of dollars annually in bonuses.
Over the past five years, Sam’s Club said its average hourly wage has increased nearly 30%. The new pay plan for frontline associates goes into effect Saturday, Nov. 2, 2024.
“At Sam’s Club, we believe delivering an unparalleled experience for our members starts with investing in our frontline associates,” said Chris Nicholas, president and CEO of Sam’s Club. “Until now, retail compensation has largely been about hourly wages, and it’s almost unheard of to talk about frontline associate compensation in terms of a predictable financial future – that changes for Sam’s Club.”
Pay is only one component of Sam’s Club’s commitment to associates, the retailer said. The company in recent years has focused on career growth and creating more pathways of opportunity for associates by providing greater security, flexibility, and convenience when and how they work. This includes:
- The implementation of block schedules for full-time associates to provide associates with better work-life balance with consistent weekly schedules
- An increase in full-time associates by 11% so even more associates can reach full 40-hour weeks
- The introduction of new technology such as Me@Sams, an easy-to-use mobile app that allows associates to easily navigate their pay, discounts, learning opportunities, and benefits – all in one place
- The creation of workgroups to broaden departmental cross-training and simplify the types of roles by more than 60%
Retaining talent is also a focus on the new plan being put forward by Sam’s Club. The retailer noted that three of four of its salaried managers began as hourly associates, and in the past five years, the number of hourly associates promoted to salaried positions has increased nearly 400%.
