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Deep thoughts on Wal-Mart's pay raise announcement

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What does yesterday's pay scale announcement from Wal-Mart mean for employees? Well, starting with 1,200 of its 3,900 U.S. stores, Wal-Mart will initiate pay raises tied to performance and customer service. While it may be hard to rate how a Wal-Mart associate gives "customer service", these measurements are nonetheless a good, industry-standard way to tie pay to employee performance, and I agree with the system, insofar as the detail that has surfaced so far.

One of the larger reasons Wal-Mart is starting new pay scale and merit-based pay systems is to, according to the retailer, help associates develop and hone the skills necessary to further their career efforts and build skillsets. This is an admirable goal, as the opportunities available are there if employees can build the skills needed to operate at a higher level and have the motivation to move up in their careers. But, is the real underlying reason really cemented by love for Wal-Mart employees or is there a larger, pressure-relieving reason for the pay scale move? Anything is conjecture at this point.

So, if this rather invigorating move by the world's largest retailer a response to the Economic Policy Institute's recent announcement that Wal-Mart could raise pay while still earning a decent -- if not smaller -- profit? Many in the media has said that the EPI announcement was furnished with pro-union bias, while others have stated the announcement was long overdue. Without specific economic details from either side -- except strong words -- one has to imagine that this recent development was a piece of the puzzle that made Wal-Mart look at its pay scale system for employees.


Brian White has worked in various executive positions in technology and telecommunications and now focuses on editing and writing.

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Last updated: November 26, 2009: 12:47 PM

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