Wal-Mart launches employee initiatives
Retail giant moves to regain initiative
Wal-Mart has moved to regain the high ground in its reputation as an employer after a year in which its employment practices have come under close scrutiny.
The world’s biggest retailer has always taken a paternalistic approach to its workers, a style established by company founder Sam Walton.
However, Wal-Mart’s opposition to employees joining unions, a book written by an undercover journalist who worked at the company, and even the California supermarket strike, called over rival retailer’s efforts to vary employee contracts as Wal-Mart grows in the state, have all led to questions about its approach.
Wal-Mart president and CEO Lee Scott has reported back to shareholders and associates on how the company is on a commitment made last year to be a corporate leader in employment practices. Scott outlined a number of employment initiatives that have been implemented over the past year.
An Office of Diversity opened in November 2003 as a focal point for driving diversity in employment practices and recruitment. A key responsibility is to implement programs that develop pools of qualified diverse candidates.
Scott said: “Our goal is to make sure that the percentage of qualified minorities and women we promote is equal to the percentage who apply, and overall in 2003 we met that goal.”
[img r]samsclub.jpg[/img]Wal-Mart has also established a new Corporate Compliance team in the US, with responsibilities including the company’s obligations to associates in terms of pay, working hours and time for breaks.
The company is currently piloting three changes to its systems: An alert will sent to remind cashiers that it is time for their meal break, associates will be notified any time a manager adjusts their time records, and scheduling software will help ensure that managers comply with the work hour requirements of individual states.
From this month, Wal-Mart and Sam’s Clubs are implementing a new job classification and pay structure for all hourly associates in the US. Scott said: “No one’s pay will be reduced as a result of implementing this new structure, but some associates will receive an increase.”
Scott also said the company would maintain its current practice of not capping pay for individual positions. This means hourly employees could continue receiving annual wage increases as long as they are employed by Wal-Mart.
[img l]walmartmarket.jpg[/img]Wal-Mart will launch a new Career Preference System later this year that will enable employees to indicate their interest in specific management jobs and geographic locations. If they are qualified for the position, associates will be notified automatically when one becomes available.
Scott said: “I think we all know how Sam Walton felt about the importance of treating people right, while making ourselves and our business better. In the end, that is what these changes are all about.”
