[HN Gopher] Walmart Anticipates a Store Manager Shortage Despite...
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       Walmart Anticipates a Store Manager Shortage Despite $200k-a-Year
       Pay
        
       Author : prostoalex
       Score  : 41 points
       Date   : 2022-05-16 16:19 UTC (6 hours ago)
        
 (HTM) web link (www.wsj.com)
 (TXT) w3m dump (www.wsj.com)
        
       | bruceb wrote:
       | "In addition to increasing wages, Walmart last year dropped the
       | dollar-per-day fee employees paid to participate in the company's
       | subsidized university degree program, a move that boosted
       | participation by 44%, said Ms. Morris."
       | 
       | Participation might have increased but I wonder if completion
       | rates decreased.
       | 
       | If you can't pay $365 a year for college, even on Walmart wages,
       | might not actually be that driven to complete courses/degree.
        
         | chickenpotpie wrote:
         | I think a company charging their employees $1 a day for a perk
         | speaks more volumes about the character of the company than
         | it's employees.
        
           | CyanBird wrote:
           | It is to weed out lack of commitment, which can be very
           | common for people entering these low entry level jobs
           | 
           | I don't event live in the US, but I see it as a smart move
        
             | throwaway92394 wrote:
             | How does this weed out commitment? Or in other words - if
             | you don't want to stick around what is the negative of
             | paying the 1$ a day? Presumably if you're only in it for
             | the benefits then the benefits far outweigh 1$?
        
         | LazyMans wrote:
         | Even at $1 a day, there is still a barrier associated with
         | participaing. Having to log in, find out how to change the
         | setting/talk to someone. Fewer barriers are better, I bet the
         | net graduation rates increased, even if the completion to
         | participation ratio dropped some.
         | 
         | I agree that if you can't be bothered to figure out how to
         | contribute the $1 a day, then you're probably not all that
         | driven.
        
         | sumthinprofound wrote:
         | In 2020, the average wage of an hourly worker in a Walmart
         | store was $14.76. Over a year, that $1 a day comes out to a
         | month's car payment, or child care. I believe you can be driven
         | to complete college courses and still not be able to afford it
         | given the average pay at Walmart.
        
           | gruez wrote:
           | The parent poster's point remains. Regardless of how much of
           | an impact $1/day (or $30/month) can have, if your
           | financial/living situation is such that amount makes a
           | difference, you probably don't have the free time/mental
           | energy to finish college courses in your spare time.
        
             | sumthinprofound wrote:
             | from the article > Walmart last year dropped the dollar-
             | per-day fee employees paid to participate in the company's
             | subsidized university degree program, a move that boosted
             | participation by 44%
             | 
             | Apparently it had a significant difference.
        
               | MichaelBurge wrote:
               | The OP comment that you are attempting to disagree with
               | says "Participation might have increased but I wonder if
               | completion rates decreased." and you are citing
               | participation using the exact same quote he did as if it
               | was new information.
        
               | gruez wrote:
               | Right, but the GP was talking about completion rates.
               | People might have been enticed into _attending_ those
               | programs (it 's free, after all), but actually following
               | it through is whole different matter.
        
               | sumthinprofound wrote:
               | Agreed. I was considering attendance, but completion
               | would be a much different (and meaningful) metric.
        
         | JaimeThompson wrote:
         | Or you have high rent, another mouth to feed, sick parents to
         | take care of, or any of hundreds of other things that could
         | make every last dollar important.
        
         | ShamelessC wrote:
         | > If you can't pay $365 a year for college, even on Walmart
         | wages, might not actually be that driven to complete
         | courses/degree.
         | 
         | Some people _can_ pay that much money and blow off the whole
         | thing.
         | 
         | The notion that disposable income is a useful metric to measure
         | one's "drive" is one of the most managerial, tone-deaf, over-
         | privileged, peak-hacker-news comments I have ever seen.
         | 
         | Please reconsider your position on this. Or at least, please -
         | don't become a manager.
        
         | shepardrtc wrote:
         | $30 a month is gas for a few days or food for a few days. When
         | you're poor, you're more focused on survival and that amount
         | can put a lot of fear and hesitation into someone.
        
       | LazyMans wrote:
       | Talent pipeline? I'm not familiar with the history of how Walmart
       | provided internal growth opportunities in the past, but it does
       | seem for a majority of companies these days, internal growth
       | isn't focused on as much as it should. I guess Walmart is coming
       | to realize it's better to invest in your own workforce than hire
       | externally.
        
         | dopamean wrote:
         | I worked at walmart for a few years when I sort of lost my way
         | in my mid 20s and I have to say it was an eye opening
         | experience. Everyone knows a lot of the bad stuff about walmart
         | so I wont dwell on that but the good stuff I saw were things I
         | had no idea about and was pretty impressed with.
         | 
         | At the time I was a college dropout with a pretty bad attitude
         | but I needed a job and I wasnt afraid to work long boring hours
         | and so I got a job stocking shelves at a walmart near my
         | parents house. It was a mind numbing job but it actually paid
         | ok at the time (12$ hour, I was in orlando, this was 2008ish).
         | 
         | After simply showing up on time and doing my job properly for
         | just a few months I was told that if I wanted I could take on
         | more responsibilities. I met with our store manager who showed
         | me stats about how walmart really likes to promote from within
         | and that if I stuck with it I could get to be an assistant
         | manager in a store in just a few years. The store manager
         | telling me this had a GED and had worked at walmart for 15
         | years. He told me his salary was "close to 200k." I couldn't
         | believe it.
         | 
         | In my few years working at that store I saw several people get
         | promoted from shelf stocker to department supervisor to
         | assistant manager. One of those people is a store manager at a
         | store in Georgia now. I left my job at walmart with a pretty
         | evolved opinion of the place. For a long time I told people who
         | were directionless and worried about what their future would
         | look like to seriously consider working at walmart and to make
         | it clear to their bosses they wanted to move up.
         | 
         | There were other benefits back then that were pretty solid. I
         | worked with a couple of women who got a lot of their tuition
         | reimbursed. Both of whom are nurses now. I really did feel like
         | if you could put up with some of the BS you get working at
         | walmart you could actually get something good out of the
         | experience for yourself.
         | 
         | Anyway this was a long rambley way of saying that at least in
         | 2008-2010 when I worked at walmart they really valued promoting
         | from within.
         | 
         | Oh final note: there were lots of programs like the tuition
         | reimbursement one tha I was told about when I was hired but
         | assumed there was some catch or some way that it wouldn't work
         | out. The HR manager at my store told me once that some of these
         | things just required you do sign up and that she was shocked
         | how low the participation rates were.
        
           | oceanplexian wrote:
           | I worked at Staples around the same time period, 2008-2009,
           | and while it was mind-numbing work, I learned a good portion
           | of the skills I needed for the corporate world. Things like:
           | showing up on time even when you don't want to, knowing how
           | and when to escalate to management, how to communicate with
           | customers, executing business processes like opening,
           | closing, stocking shelves, etc. The pay was only $8/hr. but
           | the experience was easily worth 10 times that. At the time I
           | was in college and living with my parents with free tuition
           | from the Pell Grant; a few hundred bucks every two weeks was
           | actually a decent amount of money for food, gas for the car,
           | whatever. I feel for people who have to make a living in that
           | environment but it's not meant for that, it's meant to be a
           | learning and growth environment.
        
         | at-fates-hands wrote:
         | This was one of the things I've heard many senior people at
         | Target talk about. They constantly have a pipeline of people
         | they're pushing into leadership roles. If you come in and show
         | some promise managing projects and people, they essentially
         | start grooming you immediately and focus on pushing you up in
         | the leadership ranks.
         | 
         | AFAIK they've never had any issues with having enough people in
         | their org either on the retail or corporate side who want to be
         | in leadership roles.
        
           | LazyMans wrote:
           | I really feel like this is the correct way to operate. Create
           | real career paths for people, get employees to buy into what
           | they're doing. It results in happier employees, happier
           | customers, and ultimately everybody wins if the entire
           | company isn't turning over constantly. Costco can drive much
           | more productivity from each person because they work to
           | retain these people. Turnover is bad for morale, and training
           | a new person takes time and money.
        
           | ilamont wrote:
           | Relative worked at Target retail at a very junior role ...
           | the group responsible for restocking. It was a very unusual
           | management structure at the local store; just a nebulous
           | "team" with no real point person like at a grocery store
           | which has specific managers, assistant managers, and
           | department managers. It seemed a little loose at times (and
           | abusable from a staff perspective), but I could also see it
           | was flexible and the store did very well.
        
       | joshstrange wrote:
       | https://archive.ph/IY3fL
        
       | blakesterz wrote:
       | "To keep up with an onslaught of sales early in the Covid-19
       | pandemic and worker absences, Walmart hired around half a million
       | people over six weeks between March and May of 2020, said Donna
       | Morris, Walmart's head of human resources, who started the job in
       | February 2020 after decades at technology companies."
       | 
       | WOW. That number is mind boggling.
        
         | vecinu wrote:
         | > Donna Morris
         | 
         | That name surprised me, I forgot she left Adobe years ago.
         | 
         | I have no idea how these people keep getting compensated so
         | well for a job that is barely technically demanding.
        
         | buscoquadnary wrote:
         | That really is. I've been studying WW1 recently and those are
         | the kind of numbers you see associated with the largest
         | offensives in the war. To consider the scale at which Wal-Mart
         | operates that it grabbed up almost .01% of the nation for
         | hiring. That really is crazy to consider.
        
           | recursive wrote:
           | 0.01%? I'm pretty sure you're too low by at least a factor of
           | 10. More so if you consider only those in the labor pool.
        
       | legitster wrote:
       | A good family friend is a manager of a Safeway. It's surprisingly
       | hard work. You spend 55+ hours a week on your feet, you have to
       | sub in for any job in the store at a moment's notice, you deal
       | with the worst customers on an hourly basis, and you still have
       | to know all the ins-and-outs of running an incredibly low margin
       | business. And all for less money than a junior software dev might
       | make.
        
         | Havoc wrote:
         | >you have to sub in for any job in the store at a moment's
         | notice
         | 
         | That sounds absolutely bleak. Basically creates a strong
         | incentive for HQ to run things hyper lean and rely on this as a
         | backstop routinely
        
       | crmd wrote:
       | Walmart's average revenue per store is approximately $44MM and
       | their gross profit margin is a bit less than 25%. Im not
       | surprised they're having a hard time finding people to be
       | accountable for business results like that for a salary of $200k.
        
       | noja wrote:
       | What is going on here? This is the company where something like
       | ten percent of staff are on food stamps!
        
         | legitster wrote:
         | This is a pretty petty attitude. The point of these social
         | programs is that they are tied to household need - not
         | employment. What's the point of welfare programs if they should
         | only be tied to unemployment?
         | 
         | Moreso, EBT eligibility is usually determined by household
         | size. So I guess it's Wal-Mart's fault for not paying people
         | based on how many children they have?
        
           | the_lonely_road wrote:
           | I'll add to this that a system designed to stabilize around
           | units of "two-earners" can be expected to find a number of
           | single earners struggling, especially if you self select your
           | analysis to be discussing single earners from the bottom
           | quintile. It would be a shock if that cohort did not have
           | significant issues existing within the current system.
           | 
           | Walmart employees, making minimum wage or close to, are
           | expected to be a cohort from the bottom quintile before
           | accounting for partner income.
        
       | Someone1234 wrote:
       | This is an article about Walmart's program that has just two
       | spots, two (and only paid _them_ $65K /ea with a college degree).
       | They had "over 1000 applicants" but had two spots, then they get
       | free(?) advertising on their internal mobility.
       | 
       | Also, this is rather a mind bender of a paragraph:
       | 
       | > Around 75% of Walmart managers started out as hourly workers at
       | the company. Walmart aims to protect that pipeline by attracting
       | more college graduates and outside hires and then fast-tracking
       | them into managerial roles, said Ms. Jordan, who is also building
       | new internal training programs.
       | 
       | So most of your previous managers are internal hires, but in the
       | future you're going to go with recent grads and outside hires
       | instead..?
       | 
       | Also, the title's $200K only appears in the body as: "often pays
       | more than $200,000 a year." Often? Want to qualify that a little?
       | Hard to read this article as anything more than a Walmart ad with
       | little substance. There's no real store manager shortage, since
       | they just had enough applications for this program to replace all
       | of their current store managers per the article itself.
        
         | wollsmoth wrote:
         | Sounds like they want to hire more "college grads and outside
         | hires" and THEN fast track them for management. So idk, make
         | them get a feel for what most of the everyday work is before
         | moving them up. I do think it's good that managers have some
         | idea of what their people are having to deal with regularly.
        
           | Guest42 wrote:
           | I agree. However, from my observations these types of
           | programs are used more to attract talent than to develop it.
        
             | wollsmoth wrote:
             | Yeah for sure, I mean anyone they feel like isn't going to
             | be good management material they can just not promote until
             | they leave.
        
         | SteveGerencser wrote:
         | The internal track isn't that uncommon. when I was at Domino's
         | Pizza it was the same thing. The path to management and
         | franchisee was through the hourly funnel. There is a lot to be
         | said for having management that started in the trenches as
         | hourly staff and had to do and learn "all the jobs" before they
         | become the boss telling other people what to do.
        
         | faangiq wrote:
         | Jail time for writing such trash articles seems fair.
        
           | 8bitsrule wrote:
           | Easier than putting the Sacklers or Jones in jail, I bet.
        
           | lotsofpulp wrote:
           | It is because Walmart is either not offering $200k per year,
           | and/or the $200k is based on working 80 hours per week with
           | variable schedules where one should expect to be interrupted
           | during dinner and weekends and nights.
           | 
           | It is always the same story with
           | restaurant/hotel/airline/retail/hospital work. Complaints
           | about struggling to hire while paying peanuts relative to the
           | shit quality of life of those jobs.
           | 
           | Especially for any "manager" or "supervisor" level position,
           | which is just code for "you are the person responsible for
           | filling in when someone calls out". And someone will call out
           | because the pay for the subordinates will always be
           | insufficient to attract reliable, quality line level workers.
        
             | samhw wrote:
             | Yeah, it mystifies me. One of my ex-boyfriends worked at a
             | chain coffee shop. He was paid minimum wage, _as the
             | manager of several branches_ , for working insane hours,
             | and (as he once said to me) the person three levels above
             | him was paid about PS50k (~$60k). _That_ guy was in his 50s
             | - that 's how long it took to get promoted. And he was a
             | smart guy: excellent programmer, wrote an emulator for some
             | old games console, wrote and managed his own email servers
             | and VPNs, filled in as an engineer for a few months at my
             | former startup (for no pay, very kindly) when we were
             | understaffed, etc. Could've easily worked as a programmer
             | for 10x the pay, in other words. He was a massive coffee
             | fan, and had tens of thousands worth of coffee equipment at
             | his house, and I _think_ he genuinely loved it and did it
             | for that reason, but someone like that must be one in a
             | million for them; I never had _any fucking clue_ how they
             | filled all the other positions... (I 'd be fascinated to
             | hear anything anyone else knows!)
        
         | donmcronald wrote:
         | > Walmart aims to protect that pipeline by attracting more
         | college graduates and outside hires and then fast-tracking them
         | into managerial roles
         | 
         | So it takes a college degree to be an hourly worker at Walmart
         | now?
        
           | jjeaff wrote:
           | Walmart recruits at the University I graduated from. When I
           | graduated, around 10 years ago, they were very aggressively
           | courting new business undergrads for Walmart corporate. They
           | revealed in my second (and last) interview that starting pay
           | was around $25k annual. Even 10 years ago, that was a joke.
        
           | btown wrote:
           | Specifically, they want to maintain the _perception_ of
           | internal mobility. So they'll hire overqualified people,
           | promote just those, and be able to use the logical fallacy
           | "X% of our floor workers become managers therefore if you
           | join you have an X% chance of a promotion every year." Which
           | they can dangle as a carrot when they need to. What I find
           | surprising is that they actually admitted publicly to this
           | strategy!
        
             | samhw wrote:
             | > the logical fallacy "X% of our floor workers become
             | managers therefore if you join you have an X% chance of a
             | promotion every year"
             | 
             | Aside from the problem of induction, why would this be a
             | fallacy? (I'm assuming you meant to implicitly apply the
             | 'each year' modifier to both or neither, because otherwise
             | it would be such a boring and obvious fallacy that I'm
             | pretty sure that's not what you meant.)
        
         | dukeofdoom wrote:
         | Modern journalist are narrative fiction writers. Articles
         | should come with a disclaimer "based on a true story". You
         | don't exactly know which part is true.
        
         | bluedino wrote:
         | I'm willing to bet 'managers' doesn't mean 'store managers'
        
           | bluGill wrote:
           | Probably not, but managers make good pay. Store managers
           | require someone who is both able to do the job (which is
           | complex), and willing to move where the company needs a store
           | manager. If you want to manage "a department" you can get
           | promoted at any store, but if you want to manage the store
           | there are only a few positions, so you move to assistant
           | manager at whatever store needs it, then move to store
           | manager at a different store - these may both be out of state
           | moves.
           | 
           | It was 20 years after leaving McDonald's before I'm no longer
           | sure I wouldn't have made more working at McDonald's than as
           | a programmer. The job path all the way up was known to me.
           | Even now I'm not sure - it depends on if I was willing keep
           | competing for the more and more rare positions above store
           | manager, and how I did compared to the others. I'm glad I
           | didn't go that way - for me it the money isn't worth it.
        
             | [deleted]
        
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