Shaking up the System

First things first

Most people probably don't know how stifling a television studio can be. The large, intense lights. The small, enclosed space. The tangle of equipment and crew. The scurrying between segments and shifting of props. The silence as the seconds count down to going live. It's bright. It's hot. It's enough to make anyone sweat. Even more so when you're a relatively fresh CEO defending an investment decision that wiped out $20 billion in market cap in just 20 minutes.

But that was President and CEO Doug McMillon in October of 2015.

Earlier that year, Walmart announced a landmark three-year, $2.7 billion investment in associates. We were going to increase wages and create new education and training opportunities. We knew there would be short-term pains, but it was a decision grounded in something founder Sam Walton taught us at the start: that our people are our greatest asset. They make the difference.

Not everyone bought the vision.

In October, we shared the financial details at our investor meeting and cut our sales forecast for the year. On Wall Street, the air left the trading room floor in a gasp. In New York City, Doug and other Walmart leaders watched the stock ticker tumble, carrying a sentiment so unlike the emails they'd received from associates over the previous months: notes of gratitude and appreciation and optimism. Momentum was already building in stores and clubs. Energy was up. The long-term investment wouldn't just be good for people; it would be good for business. We knew it was the right choice.

In a spur-of-the-moment decision, Doug went on CNBC's "Mad Money" to address the financial fallout, live and in person. It's important, he said, to put the first thing first - our people - even if some were critical of that decision.

Over the next 10 years, we continually responded to the criticism with action.

2015-2020: A groundbreaking investment

By putting people first, we renewed enthusiasm for the company from the inside - and created a better experience for customers.

2015-2020: A groundbreaking investment

• After our initial investment announcement, we raised the starting wage to $9 and launched the Retail Opportunity Initiative through Walmart.org.
• In 2016, starting wages were raised again to $10, and we created Walmart Academy - now in more than 200 locations.
• By 2020, we had established the Live Better U education benefit for $1/day, plus raises for 165,000 associates.

2021-2023: Creating more opportunities

With new programs like Associate-to-Driver and making Live Better U tuition-free, we built new pathways for associates to grow.

2021-2023: Creating more opportunities

• In 2021, we rolled out raises for nearly 1 million associates and committed to investing nearly $1 billion in training and development by 2026. Plus, Live Better U became tuition-free.
• Our Associate-to-Driver certification program launched in 2022, and truck driver starting salaries increased to up to $110,000.
• Our average U.S. associate wage reached $17.50/hour in 2023.

2024: Expanding investments and accessibility

We leveled up in 2024 by growing our education offerings, increasing investments in compensation and making company ownership more accessible.

2024: Expanding investments and accessibility

• In 2024, we further invested in education opportunities by doubling the number of short-form certificates offered through LBU and launching our Associate-to-Technician program.
• We expanded our Cancer Centers of Excellence program in collaboration with the Mayo Clinic, broadening healthcare access and continuing a series of well-being investments for associates and their families.
• Sam's Club unveiled a new compensation approach that accelerated pay for nearly 100,000 frontline associates, part of a 30% pay increase over a five-year period.
• Walmart Academy expanded internationally to Canada and has since expanded to Chile, Massmart, Mexico and Central America.
• We also announced investments in store managers through raises, increased bonus potential and stock options. Store managers earned $249,000 on average in 2024, with the highest-performing store managers making more than $500,000.
• Our 3:1 stock split made whole ownership shares more accessible, and we announced annual bonuses for hourly associates.

2025: Supporting tomorrow's workforce

As we look to meet tomorrow's needs today, we're continuing to invest in our workforce, helping them save money and live better.

2025: Supporting tomorrow's workforce

• Starting in 2025, the average hourly wage for a Walmart U.S. associate was $18.25, and our investment in market managers resulted in some earning more than $600,000 annually.
• As the labor market changed, we introduced a framework for skills-based hiring for 30 of the most common roles across industries, representing approximately 25% of the U.S. private-sector workforce.
• We expanded our 10% associate discount to include all regularly priced food, in addition to general merchandise.

We've seen these investments pay off. Turnover has declined, and more associates are turning jobs into careers and living better lives:

• One-fifth of today's U.S. workforce were hourly associates back in 2015 and have stayed with the company for the past decade.
• Over the last 10 years, those more than 316,000 hourly associates from 2015 who are still with the company today have earned over 348,000 promotions.
• 87% have retirement savings in the Walmart 401(k) Plan.
• 65% hold shares in our Associate Stock Purchase Plan-totaling over 24 million shares.
• 21,400 have been enrolled or are currently enrolled in Live Better U.
• About 600 have gone on to become store managers.

Today, approximately 75% of our management began as hourly associates. We've also continued to remove barriers by eliminating college degree requirements. Now, over 90% of our U.S. roles do not require a degree, and we've more than doubled the number of certifications we offer through our associate education benefit, known as Live Better U.

We're also using philanthropy to drive change outside our walls. Since launching the Retail Opportunity Initiative in 2015, our Walmart.org team has worked with the nation's leading workforce experts to create more opportunities for hourly American workers everywhere. Through those efforts, we've worked to drive adoption of skills-based systems, including in states like Arkansas, Alabama, Colorado and Indiana.

Onward and upward

Throughout Walmart's history, many have underestimated our ability to change as a company. Ten years on, the 2015 announcement stands as more than a wage increase - it signaled a cultural pivot. By putting people at the center of our growth strategy, we proved workforce investment is not just a moral choice but a business imperative. For the associates who have built careers with the company since then, the impact has been life-changing.

10 years of growth

KJ Long

KJ Long was a an hourly store associate in 2015 when we made the initial announcement. Since then, he's been promoted 11 times, taken advantage of Walmart-paid educational opportunities and turned a job into a career. Today, KJ is a realty project coach.

Dive deeper

Check out the Our People section of our latest ESG Report.