Walmart made waves last week announcing pay increases for their workers. The Wall Street Journal cast this as a pure labor market move – prompted by an increasingly competitive environment for retail workers. Walmart, of course, promoted this as a double-bottom line move that reflects the needs of their workers as well as something they need to do to remain competitive.
So, which was it?.
This shift provides an interesting lens through which to explore what leadership really is, and what meets the test for different types of leadership.
What is effective business leadership when you run one of the largest employers of low wage workers in the world and serve primary segments that are low and moderate income?
What is moral leadership in this context?
Can the two intersect when groups of large shareholders might believe a wage hike to be a violation of managers being fiduciaries? (It’s notable that WMT’s share price took a hit right after this was announced).
I actually believe it was an authentic expression of both effective business leadership and moral leadership. Walmart has taken a beating from the left for years because of the way it treats workers – and rightly so. They have traditionally paid very poorly, and have had a business model with incredibly high attrition rates for workers – signalling that they have a view of their workforce as heavily commodified, perhaps at the expense of being as humane as needed.
To me, the pay increase is a signal of an authentic shift. I believe this for three primary reasons: Continue reading