Sarah Nassauer reports in the Wall Street Journal:
Walmart will introduce to all of its U.S. stores software that better predicts staffing needs and allows those stores to give workers schedules that remain the same for 13 weeks. Employees have complained that it was difficult to plan their lives around changing schedules that didn’t give them sufficient advance notice.Walmart’s efforts come as U.S. unemployment is at its lowest level in decades and wages are rising, leaving retailers to battle for workers while managing rising costs. Walmart also is letting workers use a company mobile app to check schedules or swap shifts without a manager’s approval.
Walmart is rolling out a new system for scheduling its more than 1 million U.S. store workers, as the country’s largest private employer aims to hold down labor costs while offering more stable schedules to attract workers.
After four years of testing, the retailer will introduce to all 4,600 of its U.S. stores software that executives said better predicts staffing needs and allows some of those stores to give workers schedules that remain the same for 13 weeks. Some employees have complained that it was difficult to plan their lives around changing schedules that didn’t give them sufficient advance notice.
Walmart’s efforts come as U.S. unemployment is at its lowest level in decades and wages are rising, leaving retailers to battle for workers while managing rising costs. Some competitors have raised their minimum wages above Walmart’s $11 threshold set early this year. Amazon.com Inc. lifted minimum hourly pay to $15 starting this month. In September, Target Corp. moved to $12.
“I think our associates will reward us for more surety,” said Mark Ibbotson, executive vice president of realty and central operations for Walmart U.S. About half of Walmart stores currently staff the majority of their labor hours with the more stable scheduling, executives said, with plans to add more stores. Previously, the company provided workers their schedules with around 2½ weeks’ notice.
The move to offer more workers 13-week fixed schedules has been a hit, workers and executives say. However, the transition to the scheduling software that rolled out in stores before the offer of fixed shifts has been rocky for some employees who used to be assigned shifts during their preferred hours—for example, a daytime shift during the week when the store is least busy, said former and current workers.
Workers set the range of hours they are available to work each week, then wait to see which shifts they receive. Walmart’s new software predicts how many labor hours store managers should commit to each task every day based on expected sales and what jobs need to be done, company executives said. That means some shifts are being staffed with fewer workers, and other shifts are staffed with more.
“I absolutely hate it because I transferred to this Walmart for a 7 a.m. to 4 p.m. position,” said Andalusia Roane-Kendrick, a cashier in a North Charleston, S.C., store that made the software change about a month ago. She expanded her availability to pick up more hours, and her shifts now vary, said the 54-year-old who is affiliated with OUR Walmart, a worker advocacy group. Employees haven’t yet been offered 13-week fixed schedules in her store, she said.
To help relieve concerns after early tests, Walmart “doubled down on explaining the change” so workers can understand the business reason, said Mr. Ibbotson. “There will be people this does not suit,” among 1.2 million U.S. workers, he said. A newer version of the software better accounted for differences between stores when allocating hours—for example, stores with concrete floors versus tile floors that take longer to wax, said a spokesman.
Walmart also is letting workers use a company mobile app to check their schedules or swap shifts without a manager’s approval. Steadier schedules and shift-swapping via mobile have been popular, said workers and executives. “It’s life-changing,” and helps recruiting because workers can predict their paychecks or make a doctor’s appointment, said Yolanda Evans, a market manager for Walmart stores in the Erie, Pa., area.
The 13-week schedule falls short of a goal set by the company to offer six-month advance notice on schedules across the U.S. by 2016. Walmart pared the number of weeks after tests at the company’s Neighborhood Market grocery chain showed executives that they needed more data before offering stable scheduling longer-term and that workers preferred a shorter commitment to start. “I think as we become more confident, 13 weeks will grow and be longer,” Mr. Ibbotson said.
Retailers and restaurants have faced criticism that irregular and last-minute scheduling wreaks havoc on workers’ lives as they plan child care, school or expected weekly income. Six jurisdictions, including Seattle, New York City and the state of Oregon, have implemented fair-workweek legislation that requires companies to schedule workers for a set period in advance, while city councils in Chicago and Philadelphia are considering new rules, too.
Some companies have given workers a few more days advance notice on schedules. And many, including Target, are also letting workers use mobile apps to check schedules or swap shifts on the go.
At Walmart, as part of a test in a handful of locations, workers can pick up shifts outside their home store, said a Walmart spokesman, making it easier for them to add hours each week.
Overall, scheduling changes are reducing store labor costs and turnover while improving worker satisfaction, Mr. Ibbotson said. Walmart wouldn’t provide data. At an investor conference last month, Walmart Chief Executive Doug McMillon said turnover is down 10% from a year ago because of a host of changes, including wage increases.
“It might not work for everybody,” Mr. Ibbotson said. “But it works for most.”
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