Why Wal-Mart is hiring so many veterans
The company is getting some positive word of mouth for its plan. It also gets some help with its huge turnover.
As Matthew Yglesias at Slate notes, "Wal-Mart is anticipating that demand conditions will warrant them adding a fair amount of staff over the next few years and that honorable service in the military is a good screening device."
Wall Street didn't have much response to the program, which goes into effect Memorial Day along with a pledge to buy an additional $50 billion in U.S.-made goods over the next decade. Shares of Wal-Mart, whose offer is only open to those with honorable discharges, barely budged Tuesday.
Derek Thompson at the Atlantic argued that Wal-Mart has been besieged lately by negative news such as the bribery scandal in Mexico and certainly could use some positive public relations. He also noted that Wal-Mart, like many retailers, has a huge turnover, so promising 100,000 veterans a job isn't as generous of an offer as it may seem. Veterans of the wars in Iraq and Afghanistan, though, could certainly use the help.
According to the latest data, the unemployment rate for former members of the military was 9.9%, the lowest since 2008, though well above the national average of 7.8%. That's particularly shameful given the billions taxpayers have spent training soldiers, sailors and Marines to do every type of job imaginable. Sadly, there were record numbers of suicides in the military last year. Of course, Wal-Mart's offer doesn't solve veterans' many problems but it certainly is helpful.
Veterans will be eligible for everything from part-time work to more senior roles, depending on their particular qualifications, according to Brooke Buchanan, a spokeswoman for the Bentonville, Ark., company.
"If they want a job in retail, they have one at Wal-Mart," she said in an interview.
The push to hire veterans is nothing new for Wal-Mart. It has recruited members of the military for managerial roles for years and currently has about 100,000 veterans on its U.S. payroll of 1.4 million. William Simon, the head of Wal-Mart's U.S. operations, served in the Navy. The company pledged in 2011 to donate $20 million to veterans charities, including Iraq and Afghanistan Veterans of America, which applauded Tuesday's announcement.
'With unemployment for Iraq and Afghanistan veterans often above 10% in 2012, we need more employers to appreciate that these young men and women are not a charity, they are an investment," says Paul Rieckhoff, CEO of Iraq and Afghanistan Veterans of America,in a statement to MSN. "Wal-Mart's footprint is large enough that they can single-handedly impact that unemployment number, especially if they exceed their 100,000 jobs goal."
Over the next few months, it will be interesting to see how many veterans will take Wal-Mart up on its offer and, of those that do, how many wind up sticking around for a year or more. That may prove to be a vexing challenge, as the Atlantic's Thompson notes.
"I know this may sound like quibbling, but Wal-Mart -- just like pretty much all big-box retailers -- still pays most of its workforce pretty miserably," he writes. "The average sales associate makes around $8 an hour. If that's the best we can for our veterans, we're not really doing very much."
--Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
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Most of my family is still in the philippines. I send my grandmother $150 a month, that is all she gets to live off of. My aunt works everyday and gets paid for 1/2 of her hours. I send my cousin milk money when I can so her kids can have milk.....my point.....Walmart may not be the best opportunity, it may not be the most wonderful place to work, but it's better than nothing. It's better than other countries, or sitting at home collecting government help while waiting for what we thing we deserve. That feeling of entitlment "I'm better than working here" is why many people don't have jobs right now. Nobody is above working at walmart, nobody is above washing dishes or picking potatoes from a field.
A job is a job....you clock in, you do your work, you go home. You put food on the table, and you count your blessings.
$8 an hour, are you kidding? They pay $7.50 an hour with no mention of raises. They hire part-time but expecet their employees to work under 40 hours a week, considering part-time employees to work 39 1/2 hours, sitll part-time with no benefits. Get the point?
My friend worked at Wal-Mart for 3 years, never missed a day and was never late (this was 10 years ago when they hired full time). She found out she needed surgery and after she told them she would need 6 weeks off, all the sudden she was unaable to do her job right, was constantly criticized and within 2 weeks she was fired. Hence - She had no insurace to pay for her surgery. Get the point?
Understand Wal-Mart now?
This all about PR.They do hire older workers which a lot of companies won`t.My uncle
is a young 60 and can`t get a job.They can`t ask when you were born on applications
but they ask when you went to high school.Who is kidding who?
Now if they would only pay a living wageNot All Vetrans are manager material the ones that arent dont get paid worth the crap
I agree this hiring announcement is not out of the goodness of their hearts. In addition, to the fact that veterans are usually covered by VA health benefits, isn't it true that there might also be federal tax credits for employers hiring returning vets.
"The average sales associate makes around $8 an hour. If that's the best we can for our veterans, we're not really doing very much."
No one in this country can survive on this amount. Min. wage should be at least 25 dollars per hour with a maximum wage of 10 times the lowest paid employee for the highest paid person or the CEO in this case.
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[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 added just over a point, holding its weekly gain at 1.0% while the Nasdaq lost 0.4%.
The major averages began the day on an upbeat note, but relinquished their opening gains during the first 90 minutes of action. The early sentiment was boosted by a better-than-expected nonfarm payrolls report for February (175K versus Briefing.com consensus 163K), but a closer look into the report suggested that ... More
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The solid report comes a month after the retailer closed all of its Canadian operations.
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