What retailers can learn from Walmart's investment in employee experience

This week I will be attending the Retail Innovation Conference & Expo, where the main focus will be "The Evolved Customer Journey." What will interest me though, is whether when exploring this “evolved journey” will take into account the role the employee experience has on the customer experience.

Walmart’s recent initiative, effective April 2024, to offer store managers higher pay, increased bonuses, and more stock options, is a prime example of how employee experience can shape the overall success of a retail business. This strategic move aims to retain and attract managerial talent, fostering a culture of growth from within. By incentivizing employee retention, Walmart highlights the crucial role of managers - the ones that have the influence to create memorable customer experiences.

Focusing on managers is a smart strategy for Walmart. These individuals are key to the success of regional stores, significantly impacting the store's overall performance. Modern retail requires managers who are not only savvy and empathetic but also possess a comprehensive understanding of both physical and online operations. Plus managers that are ingrained in company culture and operations are invaluable assets.

What stands out about Walmart’s employee experience strategy is its simplicity. Fair compensation and making employees feel valued are fundamental yet often overlooked principles. This raises the question: why hasn’t this approach been universally adopted in the industry?

Transforming Jobs into Careers

Retail jobs are often seen as temporary roles – a means to an end. This perception can hinder the potential for career advancement within the sector. Walmart’s investment in its managers showcases a commitment to providing clear career pathways for those eager to grow within the company. This strategy benefits not only the managers but also sets a positive example for junior employees, illustrating that progression from entry-level roles to management and beyond is attainable.

Employees who advance internally develop a profound understanding of the company’s culture and operations, making them highly effective leaders. This internal progression fosters empathy and a unique perspective that external hires might lack.

Employee Experience (EX) Drives Customer Experience (CX)

A positive employee experience is essential for delivering a positive customer experience. When employees feel valued and secure, they are more likely to be proactive and dedicated. Walmart’s enhanced incentives aim to boost job satisfaction, encouraging employees to go the extra mile for customers.

Customers need to feel heard and respected. Ensuring that employees can provide exceptional service is crucial for retail success. Walmart is not alone in recognizing this; for instance, Bose’s 24/7 customer service helpdesk is renowned for resolving issues promptly, fostering strong customer loyalty.

Bridging the Online and Offline Customer Experience

Retailers have historically struggled with technology adoption, often due to resistance from senior leadership. However, the right technology can significantly transform business operations. Finding individuals skilled in both digital and physical retail is challenging but essential for competitiveness.

Walmart’s strategy includes investing in multi-skilled talent to bridge the gap between online and offline operations. Managers are expected to balance traditional retail responsibilities with the demands of fulfilling online orders and leveraging automation technologies. Walmart’s employee app exemplifies this approach, streamlining communication and operations to enhance both employee and customer experiences.

Key Takeaways for Retailers

In short, Walmart’s approach to employee experience can be distilled into three key principles

1. Transparency: Clearly outline long-term growth plans for employees.
2. Understanding: Help employees see the impact of their work on customer experience and overall business success.
3. Training: Provide tools for career development and a clear pathway for progression within the company.

By adopting these principles, retailers can maximize their most valuable asset – their people – driving employee satisfaction, customer experiences and ultimately business success.