Walmart Raised Wages In April. It’s Already Seeing The Benefits.

[demmiblue]

Source: Think Progress

After it raised wages for employees in April, Walmart said on Friday that it’s already seen lower turnover and an increase in job applicants.

“Our job applications are going up and we are seeing some relief in turnover,” CEO Doug McMillon said at a media briefing after its annual shareholders meeting. The company’s performance has been suffering recently thanks to understaffed stores, among other things.

The company announced that all workers would make at least $9 an hour this year, a minimum that would increase to $10 an hour in February. The company’s rationale at the time was that it would reap the benefits of its $1 billion investment in higher wages through lower turnover, which is apparently already playing out.

Turnover can be quite costly: it eats up the equivalent of a fifth of a worker’s salary to replace him. Higher wages have been found to stem a tide of fleeing workers, however: two different reports found that increased wages lower turnover as well as increase recruitment and employee performance.

Read more: http://thinkprogress.org/economy/2015/06/09/3667927/walmart-turnover/

[Cal Carpenter]

1. So imagine how awesome your workforce would be if you raised it to $15?

[Omaha Steve]

6. x 2

[Thinkingabout]

2. Cheaper isn't always better.

[realFedUp]

3. Walmart isn't cheap

A real misperception that it is lower priced. You really have to compare other store's prices to theirs. A few deals here and there. Also truethat employees will spend part of their checks inside the store.

[Ilsa]

4. Well, DUH! (to WalMart management)

How long have Labor specialists and economists been saying this?

[demmiblue]

5. That was my reaction, as well. n/t

[NightWatcher]

7. And guess where the employees will spend their extra few bucks...

The only place where they can afford to shop, walmart.

So it's win-win for them.

[Vinca]

8. It would be nice if they hadn't posted the ad implying "15" was the magic number.

Imagine how much better their employees would be at $15 an hour.