Workers protest against Walmart in Breitbart, Texas. Photo credit: Bob Price
Walmart may have hit a public relations home run when it announced raises for about 500,000 employees.
The retailer said will raise pay for full- and part-time employees to a minimum of $9 an hour, at least $1.75 above today’s federal minimum wage, beginning in April. Wages will increase to at least $10 one year from now. Walmart also said it will offer workers more scheduling flexibility, improve employee training and create clearer career paths from entry-level jobs to management positions.
Some commentators believe the decision is a huge step in Wal-Mart’s effort to erase its image as a retailer offering dead end, low-wage jobs. Bulldog Reporter praised the company and said the announcement will help counter its image as an evil empire.
“It’s a perfect response to the low-wage debate that’s been building up and a fantastic reputation boost for America’s largest private employer,” it stated.
A Public Relations Stunt?
Not surprisingly, Walmart’s critics were not impressed and called the announcement a cynical public relations stunt.
“We don’t want to call this a “stunt,” per se, but it is a big move for the country’s largest employer,” Adweek stated.
Adweek described Walmart’s PR execution. First the press release to targeted journalists.
Then the multi-media press release: a video of CEO Doug McMillon featured on the company’s blog. The “Editor’s Note” in the video caption says McMillon sent the letter and video to Wal-Mart’s associates earlier that day, although sceptics said the video was targeted at the media in the first place.
McMillon sits relaxed at his desk in front of photos of his children. He speaks in a folksy style and starts on a personal note, saying he’s proud to have been a Walmart associate. He assumes a humble tone, saying: “We’re always trying to do the right thing and build a stronger business. We frequently get it right but sometimes we don’t. When we don’t, we adjust.”
The text of his speech is posted below the video for those preferring to read rather than listen. Walmart’s PR team includes more information in an infographic below the text and a link to download a high-resolution image. Walmart also pinned the video to its Twitter feed to increase visibility.
An Open Comments Section
Adweek questioned the company’s decision to leave its comment sections open. Although some commentators praised the company, most complained about the store and their personal situations.
Not surprisingly, Walmart’s critics were not impressed. Many observers said it was simply responding to competitive pressure to retain employees and trying to save its failing reputation. Even after the raises, its average employee will still live below or barely above the poverty line, according to The Daily Beast.
“With much fanfare and platitudes like ‘Our people make the difference,’ Walmart has achieved a public relations coup by granting quite meager raises to its employees,” opined Daily Beast columnist Michael Aiello.
Editor’s Viewpoint: In making the decision to improve wages and working conditions, Walmart likely considered the “atmospherics” – and they certainly considered how best to “spin” the announcement (which they did quite well) … but its doubtful PR considerations drove the decision. Companies simply don’t run PR stunts that cost hundreds of millions of dollars. Rather, Walmart made the decision in order to improve their business.
In the process, Walmart exercised leadership in setting wages above the minimum and improving working conditions that may indeed trigger higher wages for workers in other companies. The company’s decision to hike wages is an imperfect but worthy first step in resolving the very real issue of wage inequality. It will also help improve the economy, the lives of the workers and probably eventually improve Walmart’s bottom line.
Three cheers for that kind of PR! In the end, the best PR comes from making good business decisions.
What do you think about the PR impact of Wal-Mart’s announcement on wages and work schedules? Comments welcome below.
William J. Comcowich founded and served as CEO of CyberAlert LLC, the predecessor of Glean.info. He is currently serving as Interim CEO and member of the Board of Directors. Glean.info provides customized media monitoring, media measurement and analytics solutions across all types of traditional and social media.
