Walmart to Try Thinning Store Manager Ranks--Update
May 02 2019 - 11:29AM
Dow Jones News
By Sarah Nassauer
Walmart Inc. is testing a new store employee structure, in some
cases using fewer midlevel, in-store managers to oversee workers
while boosting pay and responsibilities for those roles.
The shift comes as the country's largest employer works to
control labor costs, keep workers longer and attract talent, while
spending more to raise wages.
Around 100 Walmart stores -- mostly Walmart's Neighborhood
Markets chain and smaller supercenters -- are testing several
versions of a new employee structure dubbed "Great Workplace."
Under it, Walmart is asking workers now called assistant store
managers and department managers to apply for fewer, but
higher-paying jobs structured around managing teams of workers.
Current managers need to apply for the new roles, often called
business leads, team leads and academy trainers.
Walmart executives say the genesis of the new worker structure
wasn't cost savings, but rather adapting its workforce to shifting
shopping habits and employee demands.
The changes include giving more decision-making power to people
on the floor, while giving good managers elevated roles.
For example, test stores let workers help customers with
requests such as returning items or changing a price without
multiple authorizations -- and groups them into teams that
communicate and complete tasks across shifts, said Drew Holler,
senior vice president associate experience for Walmart U.S.
"That is probably the game changer in this, we are pushing
decisions down," he said. The new team leaders manage multiple
departments and a team. Previously a department manager was more
focused on completing tasks in a single department, said Mr.
Holler.
So far in many of the test stores, the number of salaried
managers has fallen, while head counts overall have stayed steady
or increased, he said. Frontline workers are more engaged, he
said.
The new structure could change as Walmart learns what works best
and won't necessarily be rolled out to all of Walmart's 4,600 U.S.
stores, Mr. Holler said.
(More to come)
Write to Sarah Nassauer at sarah.nassauer@wsj.com
(END) Dow Jones Newswires
May 02, 2019 11:14 ET (15:14 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Walmart (NYSE:WMT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Walmart (NYSE:WMT)
Historical Stock Chart
From Apr 2023 to Apr 2024