Home Leadership Turn Archives Me RampUp Solutions  
 

  • Categories

  • Archives
 

Lessons in spin and DE-motivation from Walmart

by Miki Saxon

Bashing Wal-Mart has been the sport du jour for quite awhile, and, although I can’t stand the company for may reasons and won’t shop there, I haven’t bothered to join the fray, since it was all being said so well by others. However, since I preach and push for really open, honest management communications I just couldn’t let the most recent example of callous-demotivation-given-positive-spin go by without commenting.

First, the demotivation. How would you like to work your tail off for 10, 15 or more years only to find that your next promotion or lateral move would require a cut in pay?

That, in a nutshell, is the effect of Wal-Mart’s loudly proclaimed pay increases with caps. And if you happen to be at the top of your category you won’t have to worry about a raise, there won’t be one—ever again—in that position. But, gee, you might have a shot at a $400 bonus at year-end. (Being the cynic that I am, I wouldn’t hold my breath.)

Bless the Associated Press for obtaining an internal Wal-Mart memo written by then executive VP of benefits Susan Chambers, who now heads personnel (watch out Wal-Mart workers), that said, “Given the impact of tenure on wages and benefits, the cost of an Associate with 7 years of tenure is almost 55 percent more than the cost of an Associate with 1 year of tenure, yet there is no difference in his or her productivity.”

Wow! That is the absolutely first time I have ever heard it claimed that a new hire’s productivity equaled that of someone with years of experience who knows all the ins and outs of the job. Yes, there are ins and outs to every job and I’d like to see a new hire who can handle inventory control as well as someone with experience. But then I’m sure that Susan knows far more than Frederick Reichheld about the true value of workers and loyalty (AKA, retention).

Now for spin. Try and wrap your mind around this: Wal-Mart claims that there is absolutely no link between the memo quoted above and the pay caps. If you can swallow that one, the rest should be easy. Wal-Mart claims that their new policy brings them in with other big retailers. Well, I’m no expert, but I know that Costco and Lowe’s don’t work that way, but, then again, maybe they aren’t considered “big.”

Finally, and this is purely my own thought, you can rest assured that this policy will have no effect on the company’s executives (I’m sure Susan’s pay isn’t capped) and that Wal-Mart will continue getting help from Congress if it needs to upgrade the private road leading to it’s headquarters again.

One Response to “Lessons in spin and DE-motivation from Walmart”
  1. MAPping Company Success Says:

    […] Yet another article on Wal-Mart’s commitment to sustainability. Now, I’m not knocking what they’re doing, but I do wonder if Wal-Mart’s sustainability efforts will ever be extended to their workforce. […]

Leave a Reply

RSS2 Subscribe to
MAPping Company Success

Enter your Email
Powered by FeedBlitz
About Miki View Miki Saxon's profile on LinkedIn

Clarify your exec summary, website, etc.

Have a quick question or just want to chat? Feel free to write or call me at 360.335.8054

The 12 Ingredients of a Fillable Req

CheatSheet for InterviewERS

CheatSheet for InterviewEEs

Give your mind a rest. Here are 4 quick ways to get rid of kinks, break a logjam or juice your creativity!

Creative mousing

Bubblewrap!

Animal innovation

Brain teaser

The latest disaster is here at home; donate to the East Coast recovery efforts now!

Text REDCROSS to 90999 to make a $10 donation or call 00.733.2767. $10 really really does make a difference and you'll never miss it.

And always donate what you can whenever you can

The following accept cash and in-kind donations: Doctors Without Borders, UNICEF, Red Cross, World Food Program, Save the Children

*/ ?>

About Miki

About KG

Clarify your exec summary, website, marketing collateral, etc.

Have a question or just want to chat @ no cost? Feel free to write 

Download useful assistance now.

Entrepreneurs face difficulties that are hard for most people to imagine, let alone understand. You can find anonymous help and connections that do understand at 7 cups of tea.

Crises never end.
$10 really does make a difference and you’ll never miss it,
while $10 a month has exponential power.
Always donate what you can whenever you can.

The following accept cash and in-kind donations:

Web site development: NTR Lab
Creative Commons License
This work is licensed under a Creative Commons Attribution-NoDerivs 2.5 License.