Treat employees well, pay them fairly, and business results improve – what a radical concept! Sarcasm aside, I give Walmart full credit for coming to this realization and more importantly acting on it. I agree with McMillion’s approach to indexing.

I understand retailers’ relentless pressure to minimize labor expense, but these decisions rarely consider the downside impact of not paying frontline staff well – poor customer service, lower conversion and ultimately lower traffic as customers stop shopping stores with bad service. All retailers need to reflect on the valuable and critical role their frontline workers play in delivering business results. Forget platitudes and hollow “we love you” sentimentality BS, put your money where your mouth is – it’s not charity, it’s an investment that will pay off in business results.

It feels like smoke and mirrors and sleight of hand. An average of $15 doesn’t mean anything. How skewed is it by the people who make more? Minimum wage is called such a thing for a reason. Saying our average minimum wage is $15 is a major oxymoron.

On top of that, they take away quarterly bonuses because workers prefer more in hourly wages? Of course, at $15 or less, they need more money today and not three months later. But it is not an either/or situation. Very disappointing.

Given that the cost of living varies enormously across the country, local indexing makes sense – although it would be complex if administered at a federal level. Which rather makes the case for states to be the primary mechanism for minimum wage determination – and many do currently take the lead.

As for phasing, I agree with Doug McMillon’s point. Especially right now, businesses need time to adjust and adapt. Just imposing something overnight – and I am not sure that is what President Biden is actually suggesting as he has said he is open to phasing – would be a disaster, especially for smaller firms.

There’s also the impact on jobs. Higher minimum wages will increase the drive to automation, lead to some job losses, and wage losses due to scheduling changes. After the U.K. introduced its living wage, a lot of retailers adjusted job schedules and hours to the determinant of workers. Doesn’t matter whether you see that as right or wrong, it’s what happened and it’s an issue that needs to be considered.

Not knowing what the bonuses equated to, it’s hard to say whether this is a net gain for employees. That said, wages should be indexed based on the cost of living in the region of the country stores are in so I agree with that sentiment.

The pandemic has proven that if we treat the front-line associates as essential, then their compensation, benefits, and career growth opportunities should reflect how important their roles are. As a critical component of any retail strategy, front-line store associates are customer-facing, reflect the values and what the brand stands for, and make a significant difference in positively impacting the bottom line.

It’s high time that a federally mandated $15 minimum wage law is put in place, especially as the cost of living, healthcare, and education have risen significantly over the past few decades. While capital labor expenses are a variable expense, the front-line workers are the lifeblood of any retailer. The value they bring to the table should merit the cost of living increases and other performance-based incentivization/compensation plans.

It is important for companies to show a mutual commitment to employees and raising wages, it certainly demonstrates the company’s willingness to invest in its people. Additionally, being an “employer of choice” is a growing importance and future employees have greater expectations of companies doing the right things, including paying a “fair wage.” Indexing is an excellent way to make sure stores stay in business and profitable and the two largest cost contributors to labor markets are location and cost of living.

The appearance is that Walmart is making an effort. Whether or not the numbers are what they appear to be, this is a new Walmart. Retailers can’t go wrong by treating their employees well. It translates to the way employees treat customers and, consequently, it increases sales and fosters loyalty from customers and from employees.

The federal minimum wage in the U.S. is an embarrassment. It must be raised. I don’t care if it is the phased in Biden proposal to $15 or the more complex proposal by McMillon. McMillon’s recommendation to index is is absolutely necessary. But both will accomplish the same objective — getting more money in people’s hands, the people who will spend it, and moving the total economy forward.

An increase in the minimum wage is long overdue. It’s ludicrous that it hasn’t happened in so many years. But indexing and cost of living considerations also make abundant sense. Walmart needs solutions that scale across wide swaths of society and geography, so learning from their thinking and their execution sounds like a great place to start the conversation on this subject. Walmart solutions need to work for both the employees AND a business that needs to be profitable. Let’s pay attention.

Doug McMillon’s views protect Walmart’s low-cost leadership. Simultaneously boosting wages and e-commerce capabilities comes with an exorbitant price tag that could scare investors. (Walmart is also investing in strategic partnerships and expanding into finance and advertising.) Lots of money is going out over the short- to medium-term, so McMillon is in no rush to raise wages yet. His phased approach makes sense for Walmart’s core strategy and stakeholder expectations.

Yet, by paying workers more now – while they take frontline risks during a pandemic – rivals like Target and Amazon gain an edge in recruitment, retention and PR.

High marks to Walmart for putting a positive spin on its wage decision, even though it’s not really all that positive for workers. But the optics are better than Kroger’s decision to close stores in response to worker pay regulations.

Walmart is moving the affected employees’ total compensation to a more immediate timeframe. Getting a quarterly bonus may mean a nice check when they get it but getting the extra money in each paycheck allows them to plan better. It has the added benefit of being a defined amount rather than a bonus whose size isn’t known until it is received.

I heard this on the radio yesterday and literally let out a, “go Walmart!” It’s a free-market dream when a gridlocked, bi-partisan government does nothing and then business takes the right thing to do and just frickin’ does it. Helps that they’re on fire, but to share the gain out, again, is righteous, no matter what color your stripes are. Compassionate capitalism at its best.

Nobody should complain. This is what everyone wants — a higher hourly wage. Walmart pays more than the minimum wage, so bumping up what they are currently paying should be appreciated. At the same time, they take away the quarterly bonus. I’m okay with that. This way everyone knows what they will be paid. Pretty simple. As for doubling the minimum wage, that needs to phased in over time. Indexing, as Mr. McMillon suggests, is an option.

Walmart’s position of increasing the minimum wage is great. However, tying it to some mystical number in some broadly outlined area is baffling and confusing. Where does a particular region end and another begin? How much does each carry as a wage multiplier? Why?

We should note that the Biden Administration’s minimum wage proposal is a gradual escalation of wages over the next 5 years (indexing), but is national in scope. A national minimum wage should reflect this, not regional aberrations.

Small move with a major impact. When companies pay bonuses, they have the flexibility to increase or decrease them at any time. When they go from bonuses to higher fixed wages they lose flexibility but gain by offering more stability to the wage earner.

It is interesting to note that the article also mentions that Walmart’s CEO “is not behind moving [the federal minimum wage] to $15 an hour.” Increasing the average associate wage to $15/hour at Walmart may increase employee engagement, but it will also enable Walmart to be more selective about which associates they want in their stores. This advantage would disappear if their competitors were forced to offer the same wage if the federal minimum wage increases.