Walmart raises wages for pharmacists and opticians
The news
Walmart, the nation’s largest private employer, said Wednesday it was raising wages for its 7,700 pharmacists and opticians as it expands its healthcare business and tries to retain workers in a competitive environment.
The retailer said the increase would push the median annual salary of its more than 3,700 pharmacists to more than $140,000. Walmart declined to share the current salary rate, saying it was based on location and role.
It said opticians could now “expect” to earn an average hourly wage of more than $22.50. According to the Bureau of Labor Statistics, the median annual wage for a pharmacist in the United States is $129,410 and the median hourly wage for opticians is $21.58.
The company also said it was starting a program in which employees working in the Vision Center could get certification and licenses to advance into higher-paying positions.
“We’ve listened to our employees and taken their feedback on how to improve their work environment,” Brian Setzer, Walmart’s executive vice president of health and wellness, said Wednesday at the retailer’s annual shareholder meeting.
Why it matters: Pay matters in a competitive job market.
This year, Walmart raised employee wages company-wide as a way to compete for talent. Inflation affects not only shoppers, but also workers. And the labor market remains robust, giving workers more choice. Walmart in January reduced its pharmacy hours as it struggled with a tight job market.
That same month, the company said it would increase its minimum wage for retail workers from $14 to $19 per hour, from $12 to $18. The median wage is still not as high as some competitors, such as Costco.
Last year too increased wages for pharmacy technicians working for Walmart and Sam’s Club to average more than $20 an hour and promised pay raises more often.
Walmart has been under pressure for years from unions, policymakers and activists to raise the wages of its store employees. Because of scale, Walmart’s recent move to raise wages could be a signal to the rest of the retail industry that companies still need to provide more incentives to employees to stay competitive in the job market.
Background: Walmart sees its health business as a way to drive growth.
Walmart opened its first health center in 2019. By offering health care services, the retailer seeks to gain a deeper foothold in the communities in which it operates and capture a larger share of the billions of dollars Americans spend on medical care each year .
It currently has 32 health centers in the United States, with plans to have more than 75 by the end of next year.
“Strong growth” in the health and wellness category contributed to an increase in the company’s comparable store sales for its most recent quarter, Walmart chief financial officer John David Rainey said this month.
At the same time, there is a shortage of pharmacists across the country. After spending three years on the front line in the fight against the coronavirus, a significant number of pharmacy workers have burned out and left the industry. According to a 2021 report, the sector is expected to grow more slowly than the national average for other sectors in the coming years. job outlook report by the Bureau of Labor Statistics. The report said most job openings “would result from the need to replace workers who move to other occupations or leave the workforce”.
What’s Next: Expect more Walmart updates.
This week, Walmart executives, store associates and suppliers are gathered in Bentonville, Ark., for the retailer’s annual shareholder meeting.
The company is expected to outline its vision for the year ahead and provide updates on its customer base, technology innovations and store renewals. The health business will most likely be an interesting topic for investors and analysts.