Bank of America and Walmart have unveiled initiatives aimed at bolstering employee loyalty and retention amidst the ongoing challenges of the labour market.
Bank of America plans to allocate $800 million in restricted stock across its workforce, extending the benefit to employees earning up to $500,000 annually. Since its inception in 2017, the program has awarded $4.8 billion in restricted stock. CEO Brian Moynihan emphasised the company’s commitment to investing in programs that support employee career longevity.
Meanwhile, Walmart announced that store managers could receive company stock valued at up to $20,000 per year, alongside bonuses of up to 200% of their base salary, potentially yielding a total compensation of $404,000 annually for successful managers. Walmart US President and CEO John Furner highlighted the move as a means to encourage managers to take ownership of their roles.
Furthermore, Walmart introduced a 3-for-1 stock split to facilitate easier stock purchases for store associates, who can buy shares through payroll deductions, with a 15% company match on the first $1,800 contributed annually.
The introduction of equity-based compensation reflects a broader trend in HR strategies aimed at motivating and engaging employees. As companies across sectors, particularly retail and banking, grapple with labour shortages exacerbated by the pandemic, offering stock benefits has emerged as a complementary approach alongside wage increases.
According to a Morgan Stanley survey, stock plan benefits have played a significant role in both attracting and retaining employees, with 45% of participants citing them as a reason for joining their companies and 60% as a reason for staying.
In essence, these initiatives represent proactive measures by Bank of America and Walmart to enhance employee satisfaction, foster a sense of ownership, and address the evolving dynamics of the labour market.
