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Walmart, the world’s largest private employer, has imposed an increase in its starting salary and expanded some of its benefits.
The retail giant has increased its minimum wage from $9 to $11. Aside from the wage hike, employees of the company will also enjoy cash bonuses, which will be computed based on the recipient’s longevity in the company.
Aside from monetary compensation, Walmart also adjusted its employee benefits by augmenting parental and maternity leaves and extending financial assistance to employees adopting a child.
Walmart’s decision follows recent trends in the retail industry. For instance, competitor Target already announced its plans to raise its minimum wage to $11 last year and has promised to increase that amount to $15 by 2020. Other companies that made the same move in recent years include Gap, Whole Foods, and TJX.
Employers are beginning to turn over a new leaf because of some recruitment challenges. America’s unemployment rate sits at an all-time low of 4.1% within a 17-year period. This downtrend has compelled companies to come up with attractive benefits because applicants now tend to be more careful in choosing employers.
As a result, pay increases are more evident in US cities where unemployment rate is lower than 4.1%. For example, areas with unemployment rates equal to or lower than 3.5% have gained a 4% pay increase in recent years. A 5% increase was recently observed in Indianapolis, where the unemployment rate is at 3.1%.
These recent changes may be the reason why companies are starting to loosen their purse strings in order to attract the best talent, according to economists.