Walmart made a splash with its fourth quarter earnings announcement today, not with its revenue figures but in a vow to raise the pay of a half-million of its workers.
The retail colossus, which has been brushing off criticism of its low wages for years, said part-time staffers will earn at least $9-per-hour, effective in April, while full-time workers will take home at least $10-per-hour. Media coverage is global, pervasive and mostly positive.
To be sure, some states already have a $9 minimum wage floor and Walmart’s move is a PR play, but it’s one that will benefit the legions of its employees who rely on public assistance to make ends meet. Hill+Knowlton and George W. Bush PR guru Dan Bartlett has overseen a more labor-friendly tone at the company of late as income inequality rises among concerns of the American consumer.
Walmart, which reported $13.6B in revenue for the fourth quarter, said it will spend one of those billions on the pay raises, training and education of its massive workforce. The company said operating income will be “pressured” from the “investments” it is making, but it knows that shedding a reputation for underpaying, dead-end jobs will likely translate to sales down the road.
"We are trying to create a meritocracy where you can start somewhere and end up just as high as your hard work and your capacity will enable you to go,” CEO Doug McMillon told the AP. And he acknowledged in the earnings release that change is afoot. "We have work to do to grow the business,” he said. “We know what customers want from a shopping experience, and we're investing strategically to exceed their expectations and better position Walmart for the future.”
Deutsche Bank analyst Paul Trussell told CNBC, “There's been a lot of disgruntled workers, and frankly this does sound like the new CEO both of the U.S. Wal-Mart team and Doug McMillon at the helm taking a step to perhaps correct those past evils."
Meanwhile, Walmart pay increases leave the the federal minimum wage in the dust. The $7.25 rate sits alone as an embarrassment to our shameless Congress, the White House and the country as a whole. While the Obama administration’s ongoing campaign to push Congress to act has likely caused states to raise their own wage standards, perhaps the best argument to raise the rate now is that even Walmart pays more.
Business leaders will face challenges in the upcoming year, some of which will come as a complete surprise, or beyond anyone's imagination.
Teneo has hired Philipp Grontzki, who is a 20-year veteran of corporate communications and financial journalism, as a managing director in its strategy and communications group.
Rowan Benecke, who co-founded Zeno Group and helmed Burson-Marsteller's tech practice, has joined McKinsey & Co as director of communications for North America.
BCW has named Golin's Matt Coldagelli EVP and leader of its corporate affairs practice in Chicago.
Abby Bailey, who headed corporate communications for Fedex in its Middle East, India and Africa region, has joined Teneo as managing director in Dubai.
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