Bonus Pay for Essential Workers Returns
Walmart and Home Depot are among retailers awarding additional “hero” incentives.
Dec 07, 2020
ALEXANDRIA, Va.—When COVID-19 struck the U.S. last March, retailers temporarily raised hourly wages and awarded bonus pay to frontline employees. In the intervening months, companies have announced additional rounds of financial incentives as COVID-19 cases climb nationwide. Walmart is the latest U.S. retailer recognizing its essential employees with cash bonuses for their continued dedication during the pandemic.
“Our associates have stepped up to serve our customers, communities and each other when it was truly needed the most, and we’re pleased to recognize their efforts with a quarterly bonus for strong store performance and a fourth special cash bonus,” John Furner, president and CEO at Walmart U.S., said last week in a statement.
The Bentonville, Arkansas-based company’s latest bonus announcement includes $319 million in quarterly bonuses paid in associates’ Nov. 25 paychecks following strong third quarter business performance and an estimated $388 million in special cash bonuses to be paid Dec. 24. Full- and part-time associates are eligible for both bonuses.
Walmart said it has paid more than $2.8 billion in 2020 in quarterly and special cash bonuses for its associates. Walmart also has extended COVID-19-related emergency leave through July 5, 2021.
Home Depot announced last month that it’s giving hourly workers a permanent pay increase in addition to temporary bonuses it has awarded since the start of the pandemic. And Target has said it would spend more than $70 million on another round of bonuses for employees who work at stores, distribution centers and contact centers. Target implemented a $15 minimum wage in July.
Early in the pandemic, numerous convenience stores, from independents to large chains, lifted pay for their employees and instituted bonuses. In recent weeks, some companies have either continued recognition pay programs or have reinstated them.
The United Food and Commercial Workers International Union (UFCW) recently called on retailers to reintroduce extra pay and paid sick leave for grocery workers, reports GroceryDive.com.
Kroger said it has spent more than $1 billion on additional employee pay since March and has paid out $100 gift cards plus 1,000 fuel points to employees in September and will do so again this month.
“Our most urgent priority throughout this pandemic has been to provide a safe environment for our associates and customers while meeting our societal obligation to provide open stores, e-commerce solutions and an efficiently operating supply chain,” Kroger said.
NACS has compiled resources to help the convenience retail community navigate the COVID-19 crisis. For news updates and guidance, visit our coronavirus resources page.
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