• Walmart-owned Sam’s Club is raising its starting wage to $16 and offering faster increases to workers.
• The warehouse club has boosted average wages by nearly 30% over the past five years.
• CEO Chris Nicholas said the move is part of an effort to “provide more meaningful jobs” in retail.

Frontline workers at Sam’s Club are slated to get a raise ahead of the holidays.

The Walmart-owned warehouse club said Tuesday it is bumping its starting wage from $15 to $16, as well as offering faster pay increases to workers based on their years with the company. The changes take effect on November 2.

“Our new approach is one step in a series of investments we’ve made in our people over the last several years, all designed to provide more meaningful jobs and build successful teams,” CEO Chris Nicholas said in a statement.

In addition to a post on LinkedIn, Nicholas shared the news with club managers at the company’s annual holiday meeting, as well as employees tuned into the livestream, a spokesperson told BI. Managers will address more detailed questions when they return to their clubs, the spokesperson added.

While the current general pay increase for hourly workers is 3%, the new plan will introduce a range of 3% to 6% that progresses the longer a worker is employed with the company, a spokesperson told Business Insider.

The new plan would allow employees to reach their maximum pay rate for their role in eight years, versus 12 under the current structure, the company said.

Sam’s Club says the changes will bring the average hourly wage to more than $19, up nearly 30% over the past five years.

The company also highlighted other improvements, including more predictable schedules, increases from part-time to full-time hours, as well as stock grants and bonuses.

Even after the increase, the average wage at Sam’s Club will still lag behind Costco, where a recent hike brought the starting wage for most hourly positions to $19.50 an hour.

Still, an entry-level job at a wholesale club pays more than one at a Supercenter, where the starting wage is $14, and the average hourly wage is $17.50.

“A stubborn stigma persists around retail work: that it’s both temporary and transactional – roles defined by dollar-per-hour rates,” Nicholas said in an article on LinkedIn. “It’s a tired narrative we’re eager to rewrite at Sam’s Club.”

There is “a clear relationship” between good jobs and business performance, MIT professor and president of The Good Jobs Institute Zeynep Ton said in a statement.

“Sam’s Club’s strategic investments in employees and their work have already fueled productivity, increased sales, and built record membership rates,” she said.

If you are a Sam’s Club worker who wants to share your perspective, please contact Dominick via email or text/call/Signal at 646.768.4750. Responses will be kept confidential, and Business Insider strongly recommends using a personal email and a non-work device when reaching out.