I have no doubt that there are WM HR associates who are aware of and read this site. Are there really none with some knowledge about what’s coming and willing to provide that factual information to people who’s lives are about to be turned upside down?
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Agree that ecommerce sales have lower margins. I was attempting to articulate that, as that is one of the drivers of lower profitability.
It is pretty apparent that WMT is encouraging customers to come to stores to pick up ecommerce orders instead of shipping the product to their home. The last mile has a high cost burden, and this will also enable stores to continue to be relevant.
Good point, we will see if the stack rank is used as intended by upper management or whether it exaggerates cronyism, nepotism, favoritism in Bentonville. If that’s the case maybe it will be useful. An issue with your wmt growth story is that online sales are less profitable than physical store sales. Unless wmt can attract new customers with online sales, new initiatives are harmful to the bottom line. Existing customers switching to online is simply wmt cannabalizing it’s own more profitable store sales.
You are right. WM is an EDLC business model...
Buy your own pencils, pens, dry erase markers and sticky note so you can do your job.
Just try to get reimbursed gas money for driving all over town...hah!
Need a battery for your WM computer mouse... Visit the local store...
This is how WM keeps costs down... Their associates help to cover the basics of running the business.
Current business performance reflects current ways of working. WMT also gave Store Associates a $2.7B pay increase, fielded NHM formats, increased mix of ecommerce sales, refreshed stores, and invested heavily in technology which placed pressure on margins. This does not include normal investments in price. Right now, WMT has a $5B shortfall relative to its peak operating profit performance.
If performance based management works, WMT should see increased sales, profitability, cash flow, and market share. The complication in my mind is if cronyism will mitigate the potential positive impacts of performance based management and the wrong people are rewarded and retained.
WMT is an EDLC business model. As such, payroll is an addressable expense and will be evaluated on a continuous basis. Additionally, WMT is instituting a zero based budgeting process which will probably result in the elimation of headcount and other expenses. If you can’t increase prices, then operating expenses are your lever.
are you kidding me? Have u seen again costs and profit margin lately? Wake up they are pushing you out and clearing out Bentonville tech so they can replace you with Indians
Sorry I did not mean to imply weakness. Feeling extra frustrated these days thanks to Walmart. They do not deserve to have someone of your moral character. It’s ironic they implement stack ranking to “weed out the dead wood” but lose their best people in the process.
Hiring standards should increase over time as will performance expectations. As such, what made one successful today won’t necessarily be true in the future. The organization will eventually evolve and prospective employees will be aware of the performance expectations. The organization will also become more profitable and will pay for talent.
Problem with forced ranking ("rank 'em and yank 'em) is that after a few years (or less in certain areas) you're cutting legitimately good people or the good people leave on their own.
The concept only works if the company is willing to pay over market to get replacements than the ones they're losing. (Amazon is a good example.) We all know that WMT is not going to want to overpay and people won't move to Bentonville with the threat of a layoff unless WMT overpays.
This strategy will layout to be a huge disaster 3 years from now. It's as clear as the Apparel to NYC strategy. It's not a question of if but when.
I worked at GE for over 4 years in the early 2000s. The forced ranking system championed by Jack Welch was effective for changing the culture and ways of working when he asssumed the CEO role in the early 1980s. GE had become stagnant, and he was charged with accelerating the growth of the business. I would say that GE was 75% results, 25% relationship driven. That is, if one was not meeting business commitments (Operating Plan, Goals & Objectives) you were already in the hole. Walmart, in my mind, is on the other end of the spectrum and is working to shift the pendulum. GE culture is also aggressive and direct, and not passive/aggressive as Walmart is.
The downside, as someone has already alluded to, is that some people who are not necessarily low performers can be slotted that way in order to meet the distribution. I believe the annual removal of 10% of the population was too high, although I agree with the concept.
it is not a matter of not being able to take it, it’s about having ethics and integrity. If asked to compromise those values, it will be pretty easy for me to leave. And I’m aware I’ll be held to the same standard. I also know I’m one of the highest performers on my team so if I start getting coached or receiving sub-par reviews, I’m bright enough to know what that means.
what do you think? Wouldn’t saving cost on bonus be consistent with EDLC?
vitality curve is the rule for all managers, if you can’t take it quit. You will be held to same standard by your manager
The question is will they let go of people right before bonus qualifier Feb 1st
I’m not going to rank my people lower than they deserve so I guess I’ll be looking outside the company for myself.
Btiotm 5 to 10% will be laid off, every year going forward.
They do a calibration that compares you to your peers, they have to rank you and have to have 5% in needs improvement and 5% partially meets expectations. No matter how good you and your team is, there will be ppl rated below meets.
This will cause people to grandstand, harbor knowledge and backstab
Bell curve method from GE.
Why else do you think they’ve switched to quarterly calibration and performance reviews? HR has confirmed that layoffs will continue, this is the new normal. Just assume if you’re a bottom performer or someone who’s been placed on the bottom via bogus coachings, you’re on a list.
Last poster is right. It’s because they would likely be caught and lose their job. Look up vitality curve, your annual review will be compared with teammates and bottom percentage will be cut. That’s your future, once per quarter.
OP, you are ignorant to think that the people in HR, who do know what is about to occur, would be dumb enough to post something that has a "gag order" on it. Companies are known to tell different associates different items, in an attempt to find a "leak".
If you want to know what is about to occur with some certainty (read factual), here it is. If you work in HO, your annual review is due. They ARE doing a FORCED bell curve. And YES, they will use this as a means of focused "re-deployments"/"layoffs"/"firings". That is the ONLY reason companies do everyone's annual review at the same time.
Yes I’ve been in rooms with them. It’s supposed to be a secret so that majority keep going as business as usual. HR is as happy as can be, until it affects them. As soon as it happens they want to come out on here and say how hard it was to do what they did.. lies, go down the hallways where they are lAying people off before they start and during their lunch, these people are happier then the morning sun. It’s business as usual