Walmart, the largest private-sector employer in the U.S., has announced changes to its corporate titles and pay structure for its staff roles starting in November. The company said the changes are part of a review of its compensation structures and job descriptions across the company to ensure it remains competitive and reflects the work being done today.
New Titles and Compensation for Corporate Staff
According to a Walmart spokesperson, some staff will receive new job titles although their roles, responsibilities, type of work and base pay will be unchanged. Walmart is also updating its bonus targets and stock compensation plans. The changes will affect corporate employees at Walmart and Sam’s Club, its warehouse chain.
The company said that base pay and total bonus benefits will not fall for any workers. However, about 4%, or 2,000 workers, will receive a reduction in stock-option awards as part of the change. The company said that those who are set to see a reduction in stock options will receive a one-time grant to account for the change in total compensation before their options are reset at a lower level going forward.
Reasons for the Changes
Walmart said that the changes are due to the fact that its corporate roles have become more varied over the past decade through acquisitions and new lines of business such as advertising. Kim Lupo, head of global total rewards for Walmart, told the Wall Street Journal that the changes are “good compensation hygiene” aimed at helping ensure the company is “appropriately rewarding similar levels of work.”
The company also said that the changes will help simplify the structure of its workforce and make it easier for employees to understand their career paths and opportunities. Walmart said that it will provide training and support to employees to help them transition to the new titles and compensation.
Other Recent Changes by Walmart
The announcement of the changes to corporate titles and pay structure comes after Walmart made other adjustments to its compensation and workforce requirements. Last week, the company announced that it would drop college degree requirements for some of the white-collar roles at its corporate headquarters in Bentonville, Arkansas. The company said that it will rewrite job descriptions for its campus jobs to factor in the skills people possess, alongside any degrees they hold.
Earlier this month, Walmart also changed the hourly starting wage structure for entry-level store workers. The change meant that store workers including cashiers, personal shoppers, stockers, self-checkout helpers and associates manning departments such as sporting goods or electronics would all receive the same hourly starting wages that are paid at the store, instead of different levels previously.
Walmart said that these changes are part of its efforts to attract and retain talent, as well as to invest in its associates and provide them with opportunities for growth and development.
