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How Walmart’s CEO lured white collar workers to small town Arkansas and improved employee relations

Emma Burleigh
By
Emma Burleigh
Emma Burleigh
Reporter, Success
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Emma Burleigh
By
Emma Burleigh
Emma Burleigh
Reporter, Success
Down Arrow Button Icon
June 5, 2024, 8:19 AM ET
Walmart CEO Doug McMillon speaking onstage a trade show.
Walmart CEO Doug McMillon implemented employee and brand strategies before uprooting his workforce to Arkansas. Ethan Miller—Getty Images

Good morning!

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When Doug McMillon took over as Walmart’s CEO in 2014, he decided to make some changes. 

The 33-year company veteran had a mandate to revive stagnant sales and fight off some formidable e-commerce competitors. But he also set out to change the company’s narrative, and focusing on its relationship with workers was a big part of that, writes my colleague Phil Wahba in a new magazine feature. 

Since 2015, the company has raised entry-level salaries from $9 to $14 per hour, and created more learning pathways to facilitate internal mobility among workers. It has also introduced new benefits like covering employees’ college tuition. Those improvements have been instrumental in motivating workers, keeping them in the fold, and improving the high turnover rate that plagues the customer service industry as a whole. 

McMillon has also courted good will in other ways, supporting efforts to reduce Walmart’s carbon footprint by making good on a pledge to significantly decrease greenhouse gas emissions six years ahead of schedule. 

“We’re not a perfect company, but we’ve done a lot of good things for the environment, for our associates, for others,” he says. “I would just love for the reputation to match the reality.” 

The reputational shift that has already taken place is likely a factor that has made it possible for the company to shutter its regional offices and either relocate or attract corporate workers to its company’s headquarters in Bentonville, Arkansas, a town of around 55,000. That includes engineers, marketers, merchandisers and all manner of retail executives who could live in places like New York City or Los Angeles, but have instead chosen to live in the Ozarks. 

“Walmart would not have been able to pull off this modernization, and by extension ability to better compete against Amazon, without having employees on board,” says Wahba.

Emma Burleigh
emma.burleigh@fortune.com

Around the Table

A round-up of the most important HR headlines.

A group of current and former OpenAI employees allege the company prioritizes profits over safety, and silences workers who bring up risk concerns. New York Times

Social media influencers are helping to unionize pharmacists at major drugstore chains to advocate for adequate staffing, as well as better wages and benefits. Wall Street Journal

Citigroup will now give staffers up to 24 weeks of paid parental leave, in order to stay competitive with other banks amping up their benefits to attract and retain top talent. Bloomberg

Google fired at least 100 sales and engineering workers, and Microsoft will cut “hundreds” of staffers from its Cloud department, as tech companies funnel their budgets and efforts into AI. Quartz

Watercooler

Everything you need to know from Fortune.

Forced retirement. A 25 year-old chief of staff at one of the biggest AI startups predicts her job, and most others, will become obsolete in the next three years due to the new tech’s takeover. —Orianna Rosa Royle

Swept up. Airbnb’s CEO says he messed up when he wrote in a layoff memo that he has a “deep feeling of love” for the 1,900 staffers being fired, saying he was pressured and rushed to write the response. —Chloe Berger

Winner takes all. S&P 500 CEO compensation increased nearly 13% last year, while private-sector employee wages rose by only 4.1% in the same time, as the pay gap continues to widen. —Mae Anderson, Paul Harloff, Barbara Ortutay, AP

This is the web version of Fortune CHRO, a newsletter focusing on helping HR executives navigate the needs of the workplace. Sign up to get it delivered free to your inbox.
About the Author
Emma Burleigh
By Emma BurleighReporter, Success

Emma Burleigh is a reporter at Fortune, covering success, careers, entrepreneurship, and personal finance. Before joining the Success desk, she co-authored Fortune’s CHRO Daily newsletter, extensively covering the workplace and the future of jobs. Emma has also written for publications including the Observer and The China Project, publishing long-form stories on culture, entertainment, and geopolitics. She has a joint-master’s degree from New York University in Global Journalism and East Asian Studies.

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