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Walmart cuts workers’ hours after raising wages, surprise!

Walmart is praised for raising minimum wages, but they’re now having to cut hours – will their customer service take a hit?

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Walmart praised for raising their minimum wages

Walmart’s recent minimum wage raise might not be so helpful to employees after all. That’s because the retailer, while paying more, has asked several of its stores to cut employees’ hours.

In April, Walmart raised its minimum wage to nine dollars per hour, spending a total of over $1 billion on the increase. However, at this month’s annual holiday planning meeting, store managers were asked to cut back on hours.

Now, they’re in between a rock and a hard place

The move came after Walmart’s recent earnings report disappointed investors. Walmart is caught between a rock and hard place, trying to spend more on employees to improve customer service, while simultaneously maintaining its famously low prices and high profits.

Despite this paradox, top executives seem committed to maintaining the increased minimum wage. Greg Foran, head of Walmart’s US operations, explains:

“Amid the investment [in increasing wages], we’re focused on growing sales and controlling costs, as you would expect from Wal-Mart. We are staying true to our roots. However, we are committed to improving the customer experience and we will protect the investments necessary to achieve this goal.”

Hours aren’t being cut across the board

According to Kory Lundberg, a spokesman for Walmart, hours are only being cut at locations where managers had already overscheduled the staff beyond the amount of hours that corporate headquarters had allocated.

Unfortunately, this means a big loss in take home pay and a lot upheaval in the schedules of many Wal-Mart employees, who have had their hours reduced and have been asked to end their shifts early and to take longer lunch breaks.

Employees are speaking out

Disgruntled employees have spoken to the media anonymously, for fear of being reprimanded. An employee near Houston, Texas, says her store has cut more than 200 hours per week by asking workers to go home early; she says that, since her coworkers have been sent home, she now operates the bustling back-to-school section all on her own.

Another employee in Fort Worth says that employees who were asked to work overtime earlier in the week to help with extra tasks were asked later in the week to take two hour lunch breaks, all in an effort to cut 1500 hours total.

While the minimum wage increase has certainly benefited new employees, it was not accompanied by a raise for experienced workers who were already earning over nine dollars. Some senior officials feel this is inappropriate because the more experienced staff should be in a higher pay bracket than a new hire.

Will customer service take a hit?

Lundberg assures customers that the recent change won’t affect the quality of the customer service they receive, the cleanliness of the store, or the length of the checkout lines.

However, employees tell a different story, pointing to examples of many customers having to wait for extended periods to check out or to access products that are under lock and key. Business experts predict that customer service will decline if hours are cut, and that Walmart could lose employees to businesses where they can have more stability in their schedules.

It turns out there’s more to a good job than just a decent wage. Raising pay while cutting hours is a paradox that greatly inconveniences employees, and may cause customer service to tank.

#WalmartWages

Ellen Vessels, a Staff Writer at The American Genius, is respected for their wide range of work, with a focus on generational marketing and business trends. Ellen is also a performance artist when not writing, and has a passion for sustainability, social justice, and the arts.

Business News

Everyone should have an interview escape plan

(BUSINESS NEWS) A job interview should be a place to ask about qualifications but it seems more people are asked about their personal life. How do you escape this problem?

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interview from hell

“So, why did you move from Utah to Austin?” the interviewer asked over the phone.

The question felt a little out of place in the job interview, but I gave my standard answer about wanting a fresh scene. I’d just graduated college and was looking to break into the Austin market. But the interviewer wasn’t done.

“But why Austin?” he insisted, “There can’t be that many Mormons here.”

My stomach curled. This was a job interview – I’d expected to discuss my qualifications for the position and express my interest in the company. Instead, I began to answer more and more invasive questions about my personal life and religion. The whole ordeal left me very uncomfortable, but because I was young and desperate, I put up with it. In fact, I even went back for a second interview!

At the time, I thought I had to put up with that sort of treatment. Only recently have I realized that the interview was extremely unprofessional and it wasn’t something I should have felt obligated to endure.

And I’m not the only one with a bad interview story. Slate ran an article sharing others’ terrible experiences, which ranged from having their purse inspected to being trapped in a 45 minute presentation! No doubt, this is just the tip of the iceberg when it comes to mistreatment by potential employers.

So, why do we put up with it?

Well, sometimes people just don’t know better. Maybe, like I was, they’re young or inexperienced. In these cases, these sorts of situations seem like they could just be the norm. There’s also the obvious power dynamic: you might need a job, but the potential employers probably don’t need you.

While there might be times you have to grit your teeth and bear it, it’s also worth remembering that a bad interview scenario often means bad working conditions later on down the line. After all, if your employers don’t respect you during the interview stage, it’s likely the disrespect will continue when you’re hired.

Once you’ve identified an interview is bad news, though, how do you walk out? Politely. As tempting as it is to make a scene, you probably don’t want to go burning bridges. Instead, excuse yourself by thanking your interviewers, wishing them well and asserting that you have realized the business wouldn’t be a good fit.

Your time, as well as your comfort, are important! If your gut is telling you something is wrong, it probably is. It isn’t easy, but if a job interview is crossing the line, you’re well within your rights to leave. Better to cut your losses early.

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Business News

Walmart delays the launch of its Amazon Prime competing service

(BUSINESS NEWS) Walmart+ is being delayed once again, but the service has yet to be cancelled. Will it be another flop?

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Walmart+ Amazon

Walmart+, the supposed Amazon Prime alternative of the century, has been delayed from launching until further notice. This marks the second delay of the year.

Vox reports that the Amazon Prime competitor was initially supposed to launch in the first quarter of 2020, but Walmart pushed the release back to July due to Coronavirus concerns. Now, Walmart+ doesn’t have a definitive launch date–indecision that’s easy to chalk up to both the ongoing pandemic and trepidation regarding profitability in an Amazon-dominated world.

Amazon Prime, a service which runs customers $119 per year, has well over 100 million members in the United States; that works out to at least one member in a little over 80 percent of households here. Between its ubiquitous nature and the fact that Amazon Prime members are more inclined to use Amazon frequently than non-Prime members, it isn’t hard to see why a premium Walmart subscription seems a little redundant.

But Walmart doesn’t see it that way. “Walmart executives have hoped the program would strike a balance of being valuable enough that customers will pay for it, while boasting different enough perks from Amazon Prime so that there aren’t perk-by-perk comparisons,” Vox posits. At $98 per year, Walmart+ would include things like same-day delivery, gas discounts, line-skipping, a dedicated credit card, and potentially even a video streaming service.

While there are some clear parallels between Amazon Prime and Walmart+, one can attribute those to convenience rather than imitation. People seem to enjoy having extra streaming options as a perk of Prime, so for Walmart+ to include something similar wouldn’t exactly be inappropriate.

The largest obstacle to Walmart+’s success in a post-Coronavirus world probably won’t have much to do with brand loyalty, but the fact remains that Amazon’s value is so far above and beyond Walmart’s that people who regularly use Amazon Prime aren’t likely to make the switch–and, as mentioned previously, the sheer number of people who have a Prime membership is high enough to be concerning to Walmart executives.

However, for customers who frequently shop at Walmart or live in relatively rural areas, Walmart+ doesn’t seem like a bad gig. It isn’t Amazon Prime, to be sure–but that’s the point.

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Business News

What COVID-19 measures do workplaces have to take to reopen?

(BUSINESS NEWS) Employers can’t usually do medical screenings – but it’s a little different during a pandemic.

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COVID-19 temp gun

Employers bringing personnel back to work are faced with the challenge of protecting their workforce from COVID-19. The Center for Disease Control (CDC) and the Equal Employment Opportunity Commission (EEOC) have issued guidelines on how to do so safely and legally.

Employee health and examinations are usually a matter of personal privacy by design through the American’s with Disabilities Act. However, after the World Health Organization declaration of the coronavirus as a pandemic in March, the U.S. EEOC revised its guidance to allow employers to screen for possible infections in order to protect employees.

Employers are now allowed to conduct temperature screenings and check for symptoms of the coronavirus. They can also exclude from the workplace those they suspect of having symptoms. The recommendations from the CDC also include mandatory masks, distant desks, and closing common areas. As the pandemic and US response evolves, it is important for employers to continue to monitor any changes in guidance from these agencies.

Employers are encouraged to have consistent thresholds for symptoms and temperature requirements and communicate those with transparency. Though guidance suggests that COVID-19 screenings at work are allowed by law, employers should be mindful of the way they are conducted and the impact it may have on employer-employee relations.

Stanford Health Care is taking a bold approach by performing COVID-19 testing on each of its 14,000 employees that have any patient contact. They implemented temperature scanning stations at each entrance, operated by nurses and clinicians. The President and CEO of Sanford Health Care said, “For our patients to trust the clinical procedures and trials, it was important for them to know that we were safe.”

Technology is adapting to meet the needs of employers and identify symptoms of COVID-19. Contactless thermometers that can check the temperature of up to 1,500 people per hour using thermal imaging technology are now on the market; they show an error margin of less than one-tenth of a degree Fahrenheit. COVID-19 screening is being integrated into some company time-clocks used by employees at the start and end of each shift. The clocks are being equipped with a way to record employee temperatures and answers to a health questionnaire. Apple and Google even collaborated to bring contact tracing to smart phones which could help contain potential outbreaks.

Fever, coughing, and difficulty breathing are the three most common symptoms of COVID-19. Transmission is still possible from a person who is asymptomatic, but taking the precautions to identify these symptoms can help minimize workplace spread. This guidance may change in the future as the pandemic evolves, but for now, temperature checks are a part of back to work for many.

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