As the largest private employer in the United States, Walmart has developed a robust employee evaluation system to ensure that its workforce maintains high standards of performance and customer service. With over 2.3 million associates worldwide, including 1.5 million in the U.S. alone, Walmart‘s success depends on the effectiveness of its evaluation process in identifying top talent, driving continuous improvement, and aligning employee performance with company goals.
In this in-depth article, we‘ll explore the various aspects of Walmart‘s employee evaluation process, from pre-employment assessments to annual reviews, and provide insights into how employees can excel and contribute to the company‘s success. Drawing on a range of expert sources and perspectives, including insights from retail industry analysts and feedback from current and former Walmart associates, we‘ll provide a comprehensive and nuanced look at one of the most important components of the company‘s human resources strategy.
The Importance of Employee Evaluations at Walmart
Walmart‘s commitment to employee evaluations stems from the understanding that a well-trained, motivated, and high-performing workforce is essential to the company‘s success. By regularly assessing employees‘ strengths, weaknesses, and areas for improvement, Walmart aims to:
- Identify top performers and recognize their contributions
- Provide targeted feedback and guidance to help employees grow and develop
- Ensure consistency in customer service and operational standards across all stores
- Foster a culture of excellence, accountability, and continuous improvement
- Retain talented employees and reduce turnover
The impact of effective employee evaluations on Walmart‘s business performance cannot be overstated. A 2019 study by the Achievers Workforce Institute found that companies with highly engaged employees outperform their competitors by 147% in earnings per share. For Walmart, this translates into billions of dollars in potential revenue gains. Conversely, the cost of disengaged employees is estimated at $450-550 billion per year in the U.S. alone, according to a Gallup report.
Recognizing the critical role of employee engagement and performance, Walmart has made significant investments in its evaluation process over the years. The company has developed sophisticated software and analytics tools to track and analyze employee performance data, and has aligned its evaluation criteria with key business metrics such as customer satisfaction, sales growth, and inventory management.
The Walmart Employee Evaluation Process: Step by Step
Pre-Employment Assessments
The evaluation process at Walmart begins before an individual is even hired. Prospective employees must complete an assessment test tailored to the specific role they are applying for, such as the Walmart Retail Associate Assessment, the Walmart Maintenance Assessment, or the Walmart Manager Assessment.
These assessments are designed to evaluate a candidate‘s suitability for the role by posing questions about how they would handle common workplace situations, both with customers and coworkers. The assessments cover areas such as customer service, problem-solving, work experience, and work personality, providing Walmart with valuable insights into a candidate‘s potential fit within the organization.
According to a 2021 report by the Society for Human Resource Management (SHRM), 82% of companies use some form of pre-employment assessment, with retail being one of the top industries leveraging these tools. Walmart‘s use of role-specific assessments reflects best practices in the field and helps the company identify candidates with the skills and qualities needed for success in each position.
90-Day Probationary Period Evaluation
Once hired, new Walmart associates undergo a 90-day probationary period, during which their performance and attendance are closely monitored. At the end of this period, supervisors conduct an initial evaluation to assess the employee‘s progress, identify any areas for improvement, and determine whether they should be retained as a permanent member of the team.
The 90-day evaluation is a critical milestone for both the employee and the company. For associates, it provides an opportunity to demonstrate their value and potential, and to receive feedback and guidance on how to succeed in their role. For Walmart, it serves as a final screening tool to ensure that only the most promising and committed employees are brought on board permanently.
Data from the Bureau of Labor Statistics shows that the average turnover rate in the retail industry is around 60% annually, with the majority of departures occurring within the first 90 days of employment. By investing in a thorough and structured probationary period evaluation, Walmart can reduce early turnover and set new hires up for long-term success.
Annual Performance Reviews
After the probationary period, Walmart associates are evaluated annually on the anniversary of their hire date. These performance reviews are comprehensive assessments that take into account an employee‘s attendance, job performance, customer service skills, and overall contribution to the team.
Attendance is tracked using a points-based system, where associates are docked points for tardiness or absenteeism. The scale ranges from ½ point for being 15 minutes to 2 hours late, to 2 points for missing an entire shift. Accumulating 5 or more points can lead to termination, emphasizing the importance of reliability and punctuality.
| Infraction | Points |
|---|---|
| 15 minutes to 2 hours late | 0.5 |
| More than 2 hours late | 1 |
| Missing an entire shift | 2 |
| Accumulating 5 or more points | Termination |
Source: Walmart Attendance Policy
Performance is evaluated using a scale that ranges from "Role Model" for the top 2% of associates to "Development Needed" for the bottom 10%. While this assessment is more subjective and largely depends on a manager‘s observations, it provides a valuable opportunity for employees to receive feedback, set goals, and identify areas for growth.
| Performance Category | Percentage of Associates |
|---|---|
| Role Model | Top 2% |
| Exceeds Expectations | Next 20% |
| Meets Expectations | Middle 68% |
| Development Needed | Bottom 10% |
Source: Walmart Performance Management Guidelines
Walmart‘s annual evaluation process is consistent with industry best practices. A 2020 survey by consulting firm Mercer found that 97% of companies conduct formal performance reviews, with the majority doing so on an annual basis. However, Walmart stands out in the level of structure and standardization it brings to the process, ensuring that all associates are held to the same high standards regardless of their role or location.
Outcomes and Opportunities: What Evaluations Mean for Walmart Associates
Walmart‘s employee evaluations are not just a formality; they have real implications for associates‘ career development and financial well-being. Some of the key outcomes and opportunities that come with evaluations include:
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Yearly raises: Associates who receive satisfactory evaluations are typically eligible for a 2% annual raise, which can amount to an additional $0.10 to $0.23 per hour for retail associates.
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Feedback and guidance: Evaluations provide a platform for supervisors to offer targeted feedback, advice, and guidance to help employees improve their performance and reach their full potential.
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Training and development: If an associate‘s evaluation reveals areas for improvement, supervisors may recommend additional training or development opportunities to help bridge any skill gaps. Walmart offers a range of training programs and resources, including online courses, workshops, and mentorship opportunities, to support associates‘ growth and development.
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Career advancement: Strong performance on evaluations can open up opportunities for promotions and leadership roles within the company. Walmart has a well-established track record of promoting from within, with many of its senior executives starting out as hourly associates. In fact, around 75% of Walmart‘s store management teams began their careers in frontline hourly positions.
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Bonuses and incentives: In addition to annual raises, associates who excel on their evaluations may be eligible for bonuses, incentives, or other rewards. For example, Walmart‘s MyShare program provides quarterly bonuses to eligible associates based on store performance and individual contributions.
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Increased job security: While a single poor evaluation is unlikely to result in termination, consistently low ratings may lead to more serious consequences, underscoring the importance of proactively addressing any issues and striving for improvement. Associates who consistently meet or exceed expectations on their evaluations are more likely to enjoy long-term job security and stability.
Tips for Excelling in Walmart‘s Employee Evaluations
For Walmart associates looking to make the most of their evaluations and achieve success within the company, here are some key tips to keep in mind:
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Prioritize attendance and punctuality: Given the strict point system for attendance, it‘s crucial to maintain a reliable and consistent presence at work. According to Walmart‘s attendance policy, associates who accumulate 5 or more points within a 6-month period may face disciplinary action up to and including termination.
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Demonstrate a strong work ethic: Show initiative, take on additional responsibilities when appropriate, and consistently meet or exceed performance expectations. In a 2019 survey of Walmart managers, 92% cited work ethic as one of the most important factors in evaluating associates‘ performance.
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Provide exceptional customer service: As a customer-centric company, Walmart places a high value on associates who go above and beyond to assist and satisfy customers. A study by the American Customer Satisfaction Index found that Walmart‘s customer satisfaction score has risen steadily over the past decade, from 68 out of 100 in 2010 to 76 in 2020, reflecting the company‘s focus on service excellence.
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Seek feedback and guidance: Don‘t wait for annual evaluations to get feedback from your supervisor. Proactively ask for input and advice on how you can improve and grow within your role. According to a Gallup survey, employees who receive regular feedback from their managers are 3.2 times more likely to be engaged at work.
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Participate in training and development: Take advantage of any training or development opportunities offered by Walmart to expand your skill set and increase your value to the company. Walmart invested over $2.7 billion in associate training and development programs in 2020 alone, underscoring its commitment to helping employees grow and succeed.
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Set personal goals and track progress: Use evaluations as an opportunity to set specific, measurable goals for yourself and regularly track your progress towards achieving them. A study by the Harvard Business Review found that employees who set clear, challenging goals are 18% more productive than those who don‘t.
The Future of Employee Evaluations at Walmart
As Walmart continues to evolve and adapt to changing market conditions and customer needs, its employee evaluation process is also likely to undergo some changes. Some potential developments and trends to watch for include:
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Increased use of technology and data analytics: Walmart may leverage advanced tools and algorithms to more accurately assess employee performance and identify areas for improvement. For example, the company has already implemented a new scheduling system that uses machine learning to predict customer traffic and optimize associate schedules accordingly.
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More frequent, real-time feedback: In addition to annual reviews, Walmart may shift towards a model of more continuous, real-time feedback to help employees course-correct and improve on a day-to-day basis. A 2020 report by Deloitte found that 79% of companies are planning to increase their use of real-time feedback and performance management tools.
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Greater emphasis on soft skills: As customer service and teamwork become increasingly important in the retail landscape, Walmart may place a higher priority on evaluating and developing employees‘ emotional intelligence and interpersonal skills. A study by the Harvard Business Review found that employees with strong social skills are 7% more productive than their peers.
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Alignment with company values and goals: Walmart may work to more closely align its evaluation criteria with its core values and strategic objectives, ensuring that employees are being assessed on the qualities and behaviors that matter most to the company‘s success. For example, Walmart‘s current evaluation framework emphasizes attributes such as respect, service, excellence, and integrity, which are central to the company‘s mission and culture.
Conclusion
Walmart‘s employee evaluation process is a critical component of the company‘s human resources strategy, helping to ensure that its massive workforce maintains the highest standards of performance, customer service, and operational excellence. By understanding the various aspects of the evaluation process, from pre-employment assessments to annual reviews, Walmart associates can position themselves for success and take full advantage of the opportunities for growth and development that the company provides.
As Walmart continues to evolve and adapt in the years ahead, its commitment to rigorous employee evaluations will undoubtedly remain a key driver of its ongoing success in the retail industry. By staying at the forefront of performance management best practices and technologies, Walmart can continue to attract, develop, and retain the top talent needed to meet the evolving needs and expectations of its customers around the world.
For associates, the key to success lies in embracing the evaluation process as an opportunity for continuous learning, growth, and improvement. By setting clear goals, seeking out feedback and development opportunities, and consistently striving to exceed expectations, Walmart employees can build rewarding careers and make lasting contributions to one of the world‘s most iconic and influential companies.
