Walmart introduces new training initiatives to meet the demand for skilled trades.

• Walmart on Wednesday announced new training programs for store and warehouse employees.
• The company, being the largest private employer in the nation, must fill challenging positions such as pharmacy and HVAC technicians.
• In Dallas, a new program is being tested by the big-box retailer for employees interested in pursuing skilled trades.

On Wednesday, it was announced that new training programs and certifications would be introduced to meet the demand for roles such as HVAC technicians, opticians, and software engineers.

The retailer announced that it will provide an additional incentive for hourly store employees to remain with the company: a bonus of up to $1,000 per year.

Walmart, the largest private employer in the US, is investing in its stores and workforce to maintain its position as the top retailer, with competition intensifying. The retail giant aims to retain market share, particularly in the grocery department, amidst high inflation.

In April, Walmart began offering $20,000 of stock grants to its store managers, allowing them to potentially earn more than $400,000 a year, including bonuses. Additionally, the company announced a $9 billion project to upgrade and modernize over 1,400 of its stores, representing a significant portion of its total stores across the country.

Nearly $18 is the average hourly wage of the company, which is a 30% increase over the past five years. In stores, the starting pay ranges from $14 to $19, depending on the location. Walmart increased its minimum wage in January 2023.

Despite generating $648 billion in revenue and having a market value of $537 billion, Walmart continues to face criticism for its employee wages. In the most recent fiscal year, the company's total annual compensation for the median employee was $27,642, which falls below the poverty line of $31,200 for a family of four, according to the U.S. Department of Health and Human Services.

According to their most recent proxy reports, Target's median compensation is $26,696 and Amazon's is $36,274, which includes both part- and full-time workers.

Walmart is introducing new programs to help employees advance into higher-paying jobs. The company is currently piloting a six-month training program in the Dallas-Fort Worth area, which will be attended by 100 store and warehouse associates who are interested in pursuing skilled trades, such as technician roles for facilities maintenance, refrigeration, and HVAC. According to Lo Stomski, the chief talent officer at Walmart, these skilled trade jobs offer hourly wages ranging from $19 to $45.

The associate-to-driver program, modeled after a successful program for truck drivers, has resulted in over 500 new drivers since its launch in spring 2022, according to the company.

Stomski stated that workers who participate in the programs are not obligated to continue working for Walmart, but they will be necessary as the company incorporates more automation and robotics in its warehouses and online fulfillment centers.

Walmart has increased the number of skills certificates it offers to more than 50, from five in 2020. These certifications can help employees advance into salaried or leadership positions in stores, clubs, and supply chain facilities. On average, employees complete the certificates in four months, according to Stomski.

This week, Walmart has two major events happening: a virtual shareholder meeting on Wednesday and an annual associates celebration in Bentonville, Arkansas on Friday. The celebration is a combination of a pep rally and an employee awards program that attracts thousands of workers from around the world and features surprise celebrity appearances and musical performances.