Sam’s Club boosting pay for 100K frontline workers, ‘potential to earn thousands’ in annual bonuses

Sam’s Club, the membership-only warehouse owned by Walmart, is boosting pay for roughly 100,000 frontline workers. 

The company created a road map for associates “to plan and pursue more predictable, longer-term financial futures.” It can be seen as a way to boost and retain its current workforce in the highly competitive retail environment. 

In the retail sector, turnover in 2022 averaged 60%, Sam’s Club said.

Under Sam’s Club’s new plan, “hourly wages will progress faster in their pay range, expanding the increase to between 3% and 6% based on years of service.” The average hourly rate for Sam’s Club associates is anticipated to be above $19. The company also announced that its also giving associates the “potential to earn thousands of dollars annually in bonuses.”

The pay increase helps keep employees engaged and increases the likelihood that they will stay with the company. According to Sam’s Club, the primary reason customers renew their membership is because of the experience they have with associates. 

Sam’s Club’s average hourly wage has increased nearly 30% over the last five years. 

A sign for Sam's Club is seen at the entrance to the members-only retail warehouse store at the Lycoming Mall in Muncy, Pennsylvania.
Sam’s Club is boosting pay for roughly 100,000 frontline workers. SOPA Images/LightRocket via Gett

A gallon of regular unleaded gasoline at this Sam's Club gas island hovers just under $4 as most other gas stations have prices climbing well past that amount, Tuesday, May 24, 2022 in Madison, Miss
The warehouse owned by Walmart has created a road map for workers “to plan and pursue more predictable, longer-term financial futures.” AP

“Our new approach is one step in a series of investments we’ve made in our people over the last several years, all designed to provide more meaningful jobs and build successful teams,” Sam’s Club CEO Chris Nicholas said in a statement. 

The pay raise announcement comes just as retailers have started to prepare for the busy holiday season, which includes boosting their workforces. 

Target and Aldi, for example, have already announced hiring sprees to help with the increase in shoppers throughout the season.  

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