Wal-Mart - Tyrant or Tycoon?
July 14, 2013
Wal-Mart - Tyrant or Tycoon? Wal-Mart is the largest retailer in the world, employing over 2 million people in 10,800 stores, with over $469 billion dollars in sales last year alone (Hess, 2013). The “Big Box” company always seems to be in the spotlight, good or bad, most anyone you talk to has an opinion. Wal-Mart has sparked many controversial topics such as below poverty level wages, the bullying of small businesses, effects on the environment and unaffordable health care, to name a few. However, since their inception, one thing is for sure; Wal-Mart is a money making machine. If I were in the upper echelon of Wal-Mart management there are many things I would do differently. I would first address the low wages for entry level employees. The more you put in to a company the more you are going to get out of it. While the business within Wal-Mart for dollars and cents appears to be sound the quality of life as an employee is lackluster as best. The average Wal-Mart employee makes between $7 and $8 dollars an hour. The low level of compensation for the amount of work demanded at a busy store makes for an unpleasant work experience. When the labor far exceeds the reward you are going to have a high turnover rate, which will in turn provide your customers with poor customer service. You cannot expect quality server from a constant steam of new employees who are unhappy doing their job.
70 percent of Wal-Mart employees leave within their first year (PBS.org, 2001). On top of that, according to the American Customer Satisfaction Index (ACSI), it has been the lowest-rated supermarket in customer satisfaction every year since 2005 (Hess, 2013, para. 16). I believe both of these can be resolved but increasing the entry level wages of the employees. By raising the starting wage to 10$ an hour I believe I would be able to hire a more qualified person for the job, and
References: Hess, A. (2013, March 16). 9 retailers with the worst customer service. USA TODAY. Retrieved from http://www.usatoday.com/story/money/business/2013/03/16/9-retailers-worst-customer-service/1991519/ Store Wars: When Wal-Mart comes to town. (2001, May 6) Retrieved from http://www.pbs.org/itvs/storewars/stores3.html