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Retail workers are getting some relief after a busy holiday season, at least when it comes to their pay.
Walmart store managers can now earn up to $620,000 a year thanks to an increase in base pay and new compensation and bonus packages, including stock grants and incentives. The boost comes on the heels of Walmart’s wider return-to-office mandate, which brought corporate workers back to its Bentonville, Arkansas headquarters at the start of the year.
But Walmart’s employees aren’t the only ones getting a bump in pay. Costco raised the salary of non-unionized hourly workers to $30 an hour just days before their union colleagues were set to strike. The $30-an-hour base pay will impact employees at the top of the company’s payscale, while those at the lower-end will receive a 50-cent-per-hour increase to a base $20 an hour.
That’s significantly higher than the average $16 an hour wage that the median retail sales person earns in the U.S., according to the Bureau of Labor Statistics.
Costco’s non-union employees are also receiving additional benefits, including an extra week of vacation after 30 years with the company and adding vacation for new hires in their first year—though it is unclear when these benefits will kick in.
Their union counterparts averted a strike on Saturday after the Teamsters union, which represents 18,000 Costco workers, reached a tentative three-year contract with the company. The potential strike would have affected operations at over 50 Costco stores.
No details of the contract have been reported, as union members are set to vote and ratify the contract in the coming days.
These pay raises count for some good news in the world of work this week as layoffs continue elsewhere. Happy reading, and hope you all have a lovely week!
WORK SMARTER
Practical insights and advice from Forbes staff and contributors to help you succeed in your job, accelerate your career and lead smarter
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REPORTER’S NOTEBOOK: PRIVATE SECTOR LESSONS ON EMPLOYEE BUYOUTS
Federal employees have until Thursday to decide whether or not they want to take a “deferred resignation” offer that would have them get paid for another eight months without having to work. If the private sector offers any indication, here’s what could happen.
President Donald Trump is taking a page out of the private sector’s playbook—and from Elon Musk’s transition to becoming owner of Twitter, now X—in his sweep of federal employees. Last Tuesday, federal workers received an email offering them the option to resign effective September 30 in what many are calling a buyout.
Employee buyout programs are common in the private sector, with companies offering one-time lump sum payments, or months of severance, or pension enhancements, or some carefully constructed combination of incentives, before resorting to mass layoffs. “They are a way for organizations to create an opportunity for people who were otherwise thinking about leaving, often in times of change or transformation,” says Ron Seifert, a senior client partner at Korn Ferry’s benefits practice.
While Trump’s offer is not technically a buyout––it would have employees remain on the federal payroll until the end of the fiscal year, a point of concern with members of Congress and employment lawyers who question how these employees would be paid for not working––it is similar to private sector buyout deals.
Indeed, buyouts can be a “compassionate” offer to employees already on the fence about leaving a company. But clarity in communication is key in maintaining your workforce––both those planning to leave and those planning to stay––satisfied, adds Allison Vaillancourt, vice president at benefits and HR consultancy Segal Group.
And they are especially common in periods of transition, like an administration change.
How many people will take the Trump Administration up on its offer is still up in the air. Though the Office of Personnel Management estimated that between 5% and 10% of employees would take the deal, saving the government $100 billion. But only 1% of the more than 2 million civilian workers offered the resignation have taken it so far, according to Axios. That is closer to $3.1 billion in savings to the taxpayer.
Some workers, like military and immigration personnel, are excluded from the offer. Air traffic controllers who initially received the email announcing the buyout option later learned that they were exempt from a CNN report.
Even for those who have already accepted––by replying “resign” in response to the now infamous “Fork in the Road” email––instructions are unclear. One employee who spoke to ABC News said that they have not heard back from OPM about the status of their resignation, and was told by their manager that they should have waited for more guidance before accepting the offer.
With just two days before the deadline, here’s what federal workers should be asking before they take the deal, according to Forbes contributor Gena Cox.
TOUCH BASE
News from the world of work
Veterans often have a hard time transitioning out of the military into civilian jobs, but one former Navy SEAL is trying to make it easier. Christian Ruf runs a headhunting agency that finds former special forces operators to run small businesses, like roofing companies, HVAC businesses and manufacturing plants.
If you’ve been laid off, you may have just been “promoted outwards,” at least according to LVMH CEO Bernard Arnault. During an earnings call on Tuesday, the French billionaire renamed Meta’s announcement to let go of its bottom performers as an outwards promotion, adding that Tiffany’s also saw cuts after its acquisition.
Following disappointing earning results, Main Street companies are implementing massive job cuts. Estée Lauder announced on Tuesday it was slashing 7,000 jobs, while automaker Nissan is offering buyouts to employees across the country after it cut 9,000 jobs in November. Berkshire Hathaway announced it had cut 4,000 jobs in 2024, despite being on pace to post a record annual operating profit.
Elon Musk continues to gain power and access in the White House as a “special government employee.” After it was reported Musk gained access to data from the Treasury Department’s Bureau of the Fiscal Service, including payroll information, unions representing federal employees sued the department over Musk and DOGE’s access to such systems.
Efficiency is the corporate theme of 2025: The Conference Board’s 2025 annual report found that 21% of its respondents expect a greater emphasis on demonstrating the cost efficiency of their programs to higher-ups, as well as a focus on shareholder value.
NUMBER TO NOTE
$197 million
That’s how much billionaire pop star Taylor Swift paid out in bonuses to her Eras Tour staff, including performers and crew, according to People.
VIDEO
Working For Free? Why Kendrick Lamar Won’t Get Paid For Super Bowl Halftime Show
QUIZ
Which of the following companies have NOT met their target for female partner representation?
A. EY
B. PwC
C. KPMG
D. Deloitte
Check if you got it right here.