Retailer chain Walmart Stores Inc. on Thursday announced its decision to boost the paychecks of its nearly half-million American workers.
The country’s largest private employer announced the wage hike as part of a USD one billion investment plan under which the company wishes to bring significant changes in its working style and productivity by offering its workers with more opportunities for advancement and more consistent schedules.
The changes come in the backdrop of the company facing severely increased pressure to pay more to its hourly employees. On the other hand, Walmart has a entirely different say on this issue. The company, which has been condemned for its poor customer service and messy stores, said that its main focus is on hiring as well as retaining better employees in order to boost its business.
In 2013 and 2014, the company has witnessed very disappointing sales. But the better-than-expected results in the recent holiday season had brought a sense of relief for the company.
Walmart believes measures like offering better care to its workers, hiring better employees and several other initiatives will help the company in better running the stores, offering consumer satisfaction and raising its sales and profits.
Walmart chief executive Doug McMillon said, “What’s driving us is we want to create a great store experience for customers and do that by investing in our own people. A better store experience results in happier customers, resulting in stronger sales.”
McMillon made the comments during an interview to a news agency ahead of the wage announcement decision by the company at its headquarters in Bentonville, Ark.
Walmart’s business in the United States, which accounts for 60 percent of the company’s annual net sales of USD 482 billion, had dropped or grew little for eight straight quarters before the recent holiday period.
An annual survey of 70,000 US customers, conducted by the American Customer Satisfaction Index, showed that Walmart’s customer satisfaction declined to the lowest level since 2007.