Should Walmart Raise The Minimum Wage

According to Walmart’s website, with their revenue of $485.9 billion, they employ approximately 2.3 million associates worldwide. They clearly are one of the largest private employers. Because of this status, there are many opinions in the news that they can afford to pay their workers more. It has been written that Walmart workers have been protesting for years about the low wages that Walmart pays its employees and that’s why they voluntarily raised the minimum wage.

I have mixed views regarding the reasons. First, let me say that it doesn’t matter the reason, it was a good move.

In my opinion, this move was made for a combination of reasons. I would lean more on the side of supply and demand. I believe this move definitely had something to do with competitive retailers. If a large competing retailer such as Costco is paying $20/hour then you need to be able to be competitive with the workforce and not lose them to a better paying company. It’s very costly when an organization needs to re-train staff due to constant turnover. However, I say supply and demand with caution because as the wages get higher it could have a decrease effect in the quantity of labor available as well.

Another

Although, you could argue that Walmart could afford to make this increase, you have to remember that it can also cause many other effects as it relates to the stockholders. It has been said that the wage increase is expected to cost Walmart somewhere in the ballpark of $2 billion for the already agreed increase. This lost revenue is going to need to be recouped somewhere. Does that mean a smaller number of lower-skilled workers are employed? Does it mean more self-checkout counters rather than cashiers? I guess time will tell. At this point, I do not think Walmart should raise the wage to