As part of its biggest investment in worker training and pay ever, Wal-Mart told The Associated Press that within the next six months it will give raises to about 500,000 workers, or nearly 40 per cent of its 1.3 million employees.
Wal-Mart follows other retailers that have boosted hourly pay recently, but because it's the largest private employer in the US, the impact of its move will be more closely watched.
"We are trying to create a meritocracy where you can start somewhere and end up just as high as your hard work and your capacity will enable you to go," CEO Doug McMillon told the AP during an interview this week at the company's headquarters in Bentonville, Arkansas.
The changes, which Wal-Mart announced Thursday as it reported fourth quarter results, come at a time when there's growing concern for the plight of US hourly workers.
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And a new Associated Press-GfK poll found that most Americans support increasing the minimum wage.
At the same time, the competition for retail workers is becoming increasingly stiff. As shoppers get more mobile savvy, retailers are seeking sales staff that's more skilled at customer service. But in the improving economy, the most desirable retail workers feel more confident in hopping from job to job.