Walmart to Try Thinning Store Manager Ranks--2nd Update
May 02 2019 - 11:40AM
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.
The test is part of Walmart's larger efforts to remake its U.S.
store workforce of over a million employees as it invests in new
services to better compete with Amazon.com Inc. Walmart has spent
heavily to refurbish stores, add online grocery delivery and store
pickup, and offer faster shipping for online orders. Walmart is
also focused on using the new team structure to elevate workers
with better management skills to reduce turnover, a major expense
for retailers with millions of low-skilled hourly workers.
But it is also controlling labor costs. Last year Walmart
thinned its ranks of employees in store co-manager positions and is
currently reducing the number of training and human resources jobs.
As part of this process, workers were asked to reapply for a single
"people lead" role, said a spokesman. Those workers can apply for
other jobs in stores, he said.
After decades of growing its workforce and store count, Walmart
has been shrinking or slowing growth for both, cutting jobs when
closing stores, using automation to cut down the hours needed to
complete some tasks and laying off workers more regularly in
corporate offices.
Walmart said in a regulatory filing in March that it had fewer
global employees last year than the previous year for the first
time in at least two decades, reporting 2.2 million global workers
in 2018, down from 2.3 million the previous year. The retailer's
international employee base fell to 700,000 workers in 2018, down
from 800,000 the previous year, in part because Walmart sold its
Brazilian operations to a private-equity group last June. Walmart
has sold international units in the past, but kept its total worker
counts rising through store growth in the U.S.
Earlier this year Walmart said it plans to add thousands of
robots to stores to help monitor inventory, clean floors, and
unload trucks more quickly. In recent years, Walmart and other
retailers, including Target Corp., have also added cash-counting
machines to store backrooms, reducing the need for store-level
accounting jobs. Walmart has also added new roles to serve online
shoppers, including around 40,000 jobs that include collecting
items in stores ordered online for pickup or home delivery.
Write to Sarah Nassauer at sarah.nassauer@wsj.com
(END) Dow Jones Newswires
May 02, 2019 11:25 ET (15:25 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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