Dive Brief:
- As retailers inch closer to the holiday shopping season and the competition for labor gets tighter, Sam's Club announced it is raising its starting wage to $15 per hour effective Sept. 25, according to a company memo emailed to sister site Retail Dive.
- The minimum wage for select roles was $11 an hour before the announcement, a spokesperson for Sam's Club said. In certain locations and roles, some Sam's Club workers can make up to $34 per hour.
- Sam's Club CEO Kath McLay said in a memo that 95% of workers are making at least $15 hourly. Sam's Club will have an average hourly rate of over $17, slightly more than parent company Walmart's $16.40 average.
Dive Insight:
With the recent announcement, Sam's Club's minimum wage will be notably higher than Walmart's, which recently bumped up its minimum wage from the $11 an hour rate it previously set.
Amid a competitive labor market that may extend through the holidays, Sam's Club joins several other retailers in hiking wages in an attempt to lure potential workers and keep their existing ones.
"We're working to create an environment where you feel challenged and fulfilled in any number of interesting roles," McLay said in the memo. "We want you to stay with us, grow with us, and enjoy the advantages of being a Sam's Club associate."
Fellow membership-based retailer Costco raised its starting wage to $16 an hour earlier this year. Walgreens Boots Alliance and CVS said they plan to increase the minimum hourly wage to $15 for all team members. In a hiring announcement on Tuesday, Amazon said it is paying fulfillment and transportation employees an hourly starting wage of $18.
The federal minimum wage at the moment is $7.25 per hour, but as the labor shortage threatens to impact operations during the hectic holiday shopping season, retailers are going to new lengths to attract workers. Some retailers like Walmart, Sam's Club and Target are offering benefits like tuition assistance, while others like Amazon are offering sign-on bonuses up to $3,000 and health care benefits.
Along with the wage increase, Sam's Club also announced it is investing in roles geared toward allowing workers to "climb the ladder" and develop long-term careers, such as team leads.
