Sam's Club will give 100,000 employees a raise

The membership-only warehouse club unveiled a new compensation strategy that looks to improve the financial stability and career growth of nearly 100,000 frontline associates. Announced in a news release on Tuesday, the plan will take effect on November 2, 2024, and promises to accelerate pay and provide a more predictable financial future for employees.

Sam’s Club said in the release that retaining top talent is crucial. Under the new plan, it will offer a significant boost in hourly wages. Associates can expect their pay to progress “faster” within their wage range, with increases between 3% and 6%, based on years of experience. The retailer said this aims to set “predictable pay increase milestones,” so employees can better plan their financial future.

The average hourly rate is expected to exceed $19, with additional opportunities for substantial bonuses. Over the past five years, Sam’s Club said it has increased the average hourly wage by nearly 30%.

Chris Nicholas, president and CEO of Sam’s Club, emphasized that investing in associates is key to delivering an exceptional member experience. “Until now, retail compensation has largely been about hourly wages, and it’s almost unheard of to talk about frontline associate compensation in terms of a predictable financial future,” Nicholas said in the release. The new plan is part of a broader series of investments aimed at creating more fulfilling and meaningful jobs.

In addition to wage increases, Sam’s Club said in the release that it has made significant investments in technology with the goal of improving its work environment.

The compensation plan is announced at a time when other retailers, including Target $TGT (TGT) and Aldi, also ramp up their hiring efforts. Earlier this week, Target said that it would hire 100,000 seasonal employees as it braced for the holiday rush.

Meanwhile, with the same seasonal goal in mind, Aldi said it would hire over 13,000 store and warehouse associates. Notably, Aldi said it would increase its starting wages to attract those new hires, with store positions starting at $18 per hour and warehouse roles at $23 per hour.