Week One, Response One: "Walmart Raises Minimum Wage to $11, Gives $1,000 Bonus to Employees"
INSTRUCTIONS: Before you begin, please read this short article from The New York Times: "Walmart Raises Minimum Wage to $11, Gives $1,000 Bonus to Employees" by Associated Press Once you've finished, read the following commentary and follow the Blogger instructions found on Cobra to post a comment answering the questions in the final paragraph. Please let me know if you have any questions, concerns, or difficulties posting.
In the article, the Associated Press discusses how Walmart has announced they will be raising minimum wage, providing bonuses, and expanding maternity and paternity leave benefits. This news comes during the same week Walmart closed several Sam's Club locations, putting an estimated 11,000 employees out of work.
Despite the company's successes, many are citing the Sam's Club closings as counterproductive to Walmart's recent pay raise announcement. Walmart responded by claiming that although the stores they are closing were no longer profitable, they will be turning several of the buildings into e-commerce warehouses for a refreshed Sam's Club experience online.
So, what are your thoughts? Do you think Walmart's decision to bump benefits while simultaneously closing Sam's Club stores is a smart business decision? Would you be more inclined to apply at Walmart knowing they offered $11 an hour, plus additional employee benefits? Will Walmart's decision influence other large retailers and services to offer similar benefit packages? How might Walmart's overall store experience (services, prices, employee morale, etc.) change based on this news?
In the article, the Associated Press discusses how Walmart has announced they will be raising minimum wage, providing bonuses, and expanding maternity and paternity leave benefits. This news comes during the same week Walmart closed several Sam's Club locations, putting an estimated 11,000 employees out of work.
Despite the company's successes, many are citing the Sam's Club closings as counterproductive to Walmart's recent pay raise announcement. Walmart responded by claiming that although the stores they are closing were no longer profitable, they will be turning several of the buildings into e-commerce warehouses for a refreshed Sam's Club experience online.
So, what are your thoughts? Do you think Walmart's decision to bump benefits while simultaneously closing Sam's Club stores is a smart business decision? Would you be more inclined to apply at Walmart knowing they offered $11 an hour, plus additional employee benefits? Will Walmart's decision influence other large retailers and services to offer similar benefit packages? How might Walmart's overall store experience (services, prices, employee morale, etc.) change based on this news?
I think Walmart's decision to bump benefits while simultaneously closing Sam's Clus stores is a smart decision because it will bring in more employement for Walmart. By increasing the minimum wage, more qualified workers will want to apply, it also can help with customer service. I would not be more inclined to apply at Walmart even if they increased the pay to $11 an hour, and added additional benefits. The only way I would work at Walamart is if I had a full time position as the Walmart greeter. Walmart has always been "low prices", since Walmart has several competitors the company is going to do everything they can in order to stay on top and compete at a higher leverl than their other competitors. Shutting down Sam's Club could effect businesses and large companies that are wanting to purchase prodcuts in bulk. If Walamrt can keep up with providing employees with more pay and benefits it will help Walmart succeed even if Sam's Club is shutting down.
ReplyDeleteI agree with you Cody, It will bring more employment and I believe it will help customer service.
DeleteThis was a great decision by Walmart in my opinion. I feel the employment will rate rise and that putting their other competitor businesses out of business could effect in a positive or negative way. Positive, meaning they will have more customers etc. But negative when customers are looking for things that come in a bigger quantity like at Sam's. I would be more inclined to work at Walmart just because they are now offering $11 which is higher than most stores. I don't see why it wouldn't influence other stores by raising their pay up, If other stores did that would make it hard on Walmart, because Sam's has more quantity of things than Walmart and more things are sold in a bundle.
ReplyDeleteI agree with your post Yaakema, I believe it will definitely have both its positive and negatives. However I believe Walmart being such a strong smart company that it will have a more positive outcome for both the company, employees, and customers.
DeleteWalmart's decision to raise minimum wage and additional benefits is a smart decision for many reasons. Yes, they may have laid off 11,000 employees, but that's not even 1% of the total 1.5 million workers currently employed. I personally would be more inclined to apply at Walmart knowing this information. I think a lot of other people I know would chose to apply at Walmart over its competitors. There is always competition between companies, so Walmart's decision will influence others to raise minimum wage and benefits. Employee moral will also rise. Employees tend to go above and beyond when they feel appreciated at the work place. By adding these benefits and increasing pay, employees will feel more appreciated. Therefore, service will also rise as employees go above and beyond for the customers. If the customer is happy and satisfied with their service, they will return and bring in more business.
ReplyDeleteI agree with your post Lyndi, I believe that competitors will be pressured to raise their minimum wage and benefits. Causing the moral of many retail stores to rise, giving a better experience to the customer.
DeleteAbbi Nowak
ReplyDeletePersonally I think Walmart's decision to raise wages and add benefits was a great choice. Not only will it bring in more applicants but as my classmates have already stated, people tend to work harder when they're receiving better treatment and feel appreciated. It's hard to give your best to a company when said company doesn't show appreciation for your efforts. I also feel that it was an intelligent decision on Walmart's behalf because I think a positive change in the atmosphere, will affect how customers view Walmart as well. However, I personally am a Sam's Club shopper, I think by closing competing stores Walmart will have more traffic and boost sales. Sam's customers are accustomed to buying things in bulk so perhaps that trend will carry over when Sam's customers become Walmart customers.
Abbi,
DeleteI also think that Walmart's decision to offer more benefits and a higher wage was a great choice for them to make. By more Sam's club stores closing, I also agree, will only boost Walmart's traffic and sales since more people will be more attracted to go there now.
Abbi, I also agree that when people feel like they are appreciated they will give more effort. The employees performance is going to improve because of this and sales will improve. Which will improve the satisfaction of many customers.
DeleteBriana W.
ReplyDeleteI think Walmart made a great decision as far as employees with the wage and benefits. However i don't think that closing Sams Club stores to make this change possible was strong move. Sams club is a store with very wide variety in merchandise that can also be bought in bulk for a reasonable price. The same way that Walmart is raising wages for their main company for their employees, their partnering company being shut down is cutting jobs thousands within the economy. I think it will make the customer servile level higher but then again I think that it will make Walmart even pickier about who works for them. So with this I think im kind of neutral to the situation.
I think Walmart's decision to raise wage rates and give benefits was a smart decision. Raising wages will give unemployed people an incentive to apply to Walmart, which will help stimulate the economy. Raising wages also gives people that are already employed at Walmart a reason to stay. They have hope they will receive the benefits that are handed out to the employees that have had loyalty with the company. They also have hope that their wages will raise. Another advantage of raising the wages, is giving employees the incentive to work harder. Employees will have a reason to work harder and smarter. The decision to raise the wage rates was a smart decision for Walmart. I do believe that this will put pressure on other big retailers to also raise their rates. Now that Walmart has raised their wages, there is a possibility many retail workers will apply to Walmart if they are not currently getting the wage Walmart now offers. Walmart's overall store appearance may not change and prices of goods and foods may even raise slightly due to employees receiving more money.
ReplyDeleteWalmart’s decision to raise their minimum wage, provide more bonuses, and expanding maternity and paternity leave is a very beneficial thing for its employees. It does seem a little odd that they chose to do this on the same week that multiple Sam’s club stores close which left thousands unemployed. Nonetheless, Walmart is giving many people the opportunity to work in their company which I feel only benefits them. If I were unemployed and searching for a job, I would definitely be more inclined to apply to Walmart knowing all the new benefits they are offering as well as their 11$ an hour minimum wage. This puts Walmart at a more competitive status and I do feel like other big companies will try and offer more employee benefits also. From here on out, Walmart might even provide an even better customer service experience and continue to improve and make their company even bigger and more accessible. I do think though, that increasing their minimum wage will also cause them to increase the cost of their products in order to afford to pay their employees these wages.
ReplyDeleteI have to say I agree, that the increase of wages and bonuses the money has to come from somewhere. I wouldn't be surprised to see prices rising on different products though the store just to make up the difference. I don't think near the people are going to get these great benefits they advertise though, as with most retailers they will give you just shy of the full time hours to they don't have to pay out the benefits. I think they should have taken all those layoff's from Sam's and just transferred them to Walmart so people weren't going unemployed. Because unfortunately those people are now unable to take care of there families and are searching for work.
DeleteHeidi H
ReplyDeleteAlthough I think this is a good business decision for Walmart, and may boost morale by current employees. But it does not solve any of the current problems Walmart has or is encounting. Unfortunately as great as money is, it can't always fix things or fix people. I find it very said, that they are laying off 11,000 employee and then turning around and raising others wages to $11 an hour and giving them a $1000 bonus. Why not take that money and let those people keep their jobs and just transfer them to other stores to work. I can see the benefits being a big pull for some people, but then again, you have to be full time and get those full time hours to get those benefits. And a lot of places Walmart included will keep you just an hour below full time so won't qualify for those great benefits they offer. I can honestly say in my opinion nothing has changed in the Walmart experience, was just there yesterday and as per normal, there were only 3, maybe 4 check out lines open and I had to stand in line for almost 30 minutes waiting. But hey it's Walmart, I choose to go there.
I agree with you. This is a publicly stunt to make it seem like Wal-Mart is reinvesting into their employees but it still doesn't solve Wal-Mart bad business practices.
DeleteI agree that raising their wages is not going to solve any of the problems that Wal-Mart is facing. I also agree that the store experienced will not change at all because of this decision.
DeleteTerrance Harlan
ReplyDeleteYes I believe that Walmart's decision to raise the benefits is a smart business wise because this move could see overall improvement in employees performance. With more incentives their job performance's are likely to improve because they are being paid more. The raise in pay and the extra benefits Walmart is offering would definitely make it more likely for me to apply. The raise in minimum wage is also likely to make the competition for getting the job more competitive. More companies are likely to follow Walmart's business move because they could potentially see employees leaving their company for one that will pay them a higher wage. This move will also help with how employees treat customers too. With so many new incentives many employees will want great reviews on their customer service as well.
I believe Wal-Mart is playing catch up with the wages and benefits. A lot of other retailers have been at the $11.00 per hours with benefits. I am also curious to see how the employees will feel about the new raises.
DeleteAfter hearing Wal-Mart news, I am still not excited to apply for employment at Wal-Mart. I have lived in urban cities where $11.00 per hours is still not enough for anybody to make a living unless you are sharing expense with someone. The benefits they are now offering have been offered at many different companies to their hourly employees so why the largest retail is just now offering is troubling. I over heard employees chatting about this raise and they was saying how they still got cheated because of one thing or another thing. Some of the employees was stating they had already put in their two weeks notice. The Walmart company is gaining more money from closing some of the Sam Club Stores, owning the land and development land surrounding the Walmart stores which them other store businesses will decline once the Sam Club Store close, the new tax credits for big businesses, and having a lot of people who will be applying hoping to earn a decent living with benefits which mean they will cut long term employees hours. The hourly employees will be part time barely qualifying for the benefits they was applying for. Which to me means the profit will be gain on the Wal-Mart side. I am curious to see how this play out in the next year to see was Wal-Mart really investing in their employees.
ReplyDeleteFletcher Thode
ReplyDeleteRaising the pay and benefits while simultaneously closing the Sam's Club stores was an excellent business decision. Closing the Sam's Club locations is bad PR, raising pay and benefits is good PR. It was good timing by Wal-Mart. I would not be more inclined to work at Wal-Mart. Most other major retailers already offer similar compensation packages. Wal-Mart didn't raise pay and benefits because it's a swell company that wants to take care of its employees. They did it because the unemployment rate is low and they have to offer competitive wages/benefits in order to keep their workforce. As far as store experience, there will be a short lived uptick in employee morale, but other than that it will be the same old business. A dirty store with horrible service that we all shop at because it's cheap.
I agree with you, Fletcher. It was very good timing by Wal-Mart to increase minimum wage and benefits after closing the Sam's club.
DeleteI definitely agree with you, I don't believe they want to treat their employees better, its purely business. It will only attract more careless employees.
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ReplyDeleteKennedy Coffie
ReplyDeleteI think raising the pay wasn't a bad decision. There are a lot of Wal-Mart employees with children and families to support and with cost of living on the rise, it's hard to devote themselves solely to Wal-Mart. Meaning they may obtain a second job in hopes of making ends meet potentially making their schedules at Wal-Mart a little bit more limited. I also think Wal-Mart employees are sometimes not the friendliest. Often, they have worked long hours for five days out the week and are overworked and underpaid. This doesn't excuse their lack of acceptable customer service, however, I think the raises will make the associates' attitudes a bit better.
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ReplyDeleteI think that Walmart;s decision to raise their minimum wage is just an o.k. idea. In reality most place pay ten to eleven dollars an hour already anyway so this particular raise does not motivate me to apply. This raise may appeal more to someone who has little to job experience in the workplace, because for a first job, eleven an hour isn't bad. Walmart typically has a lot of young careless adults who do not know how to provide good customer service and I feel this raise will only attract more of them. Many other retailers offer similar benefits so I think Walmart is now realizing that they needed to create more of an appeal for jobs at Walmart.
ReplyDelete