In changing the titles and responsibilities of the people working in its stores, Walmart is attempting to reenvision what it means to work for the retailer. And in a case of putting its money where its mouth is, it is also reconsidering how it pays its employees.
But the shift is more than a simple pay raise. For example, instead of co-managers, Walmart now hires store leads; the role of team lead replaces department managers. Changing the title given to these in-store supervisors may seem superficial, but it reflects a broader, deeper notion. That is, rather than managing other employees, imposing tasks and duties on them, a store or team leader works with colleagues, leading them toward some common goal.
The new titles also come with rewritten job duties. Whereas the assistant store manager was “responsible for merchandising plans in their specific area” in a previous iteration of the responsibility chart, today, this role is called a coach, who is “responsible for financials, merchandising, staffing, and talent for a larger area.” With this reconsideration of the responsibilities for these various roles in the store, Walmart is acknowledging and simultaneously encouraging a more encompassing view of how people work. Rather than solely being interested in their specific area of the store, Walmart wants its coaches and leads to consider the implications of their decisions for the store (and company) overall.
With this more expansive view, ideally, store employees work together to share resources, ideas, and efforts and thus achieve more effective store operations. The training that Walmart is providing leads and coaches also encourages their critical thinking and collaboration skills. For associates, the redesigned training explicitly adopts a cross-functional approach, with the idea that if a stock clerk suddenly needs to staff a checkout counter because the store has gotten very busy, she or he should have the training to do so.
This new perspective implies more responsibilities for people in the stores, but instead of just leaving it at that, Walmart has committed to raising its hourly pay rates. Leads start at $18 and can earn up to $30 per hour in busy Supercenters. Frontline employees will now earn $11–$15 per hour as a starting rate.
As noted, such efforts are forward looking. Walmart wants its stores to run better, and a team approach may be the way to achieve that goal. But they also represent rewards for jobs well done, especially during the COVID-10 pandemic. Noting how store associates went “above and beyond to make sure customers have access to the items they need,” Walmart executives revealed their awareness of a key principle of retailing: Ultimately, employees may be the most valuable resource that a successful retailer must have.
Discussion Questions:
- Which are most important—new titles, redefined roles, or pay raises—for encouraging team-based work efforts?
- Is a team-based approach appropriate for Walmart? What challenges might adopting this approach raise for the retailer?
Source: Justin Bariso, “Walmart Just Made a Change that Could Shape Its Future for Years. It’s a Lesson in Emotional Intelligence,” Inc., September 21, 2020.