Walmart’s Workforce Strategy: Retention and Growth in 2025

Walmart’s Workforce Strategy: A Practical Response to the Future of Work

As 2024 comes to a close, the labor market is at a crossroads. Hiring is slowing, economic uncertainty looms, and a surprising calm has settled where rapid turnover once dominated. Against this dynamic backdrop, employers are shifting strategies—focusing on retention, efficiency, and upskilling rather than aggressive expansion. Walmart’s recent workforce initiatives offer a compelling case study of how large employers are adapting to this new environment.

The retail giant’s investments in wages, career development, and employee benefits are not isolated moves. Instead, they reflect broader trends shaping the workforce for 2025—a deliberate pivot from churn to stability, from growth at all costs to sustainable progress.

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The following information is based on publicly available information and should be used for general and informational purposes only.

Job Market Trends for 2025: Slower Growth, Rising Competition

Aura’s December Hiring Trends Report shows that U.S. job postings dropped nearly 14% last month, signaling a clear slowdown. States like Texas and California, which have long been economic powerhouses, saw declines of 17% and 15% respectively. Similarly, iCIMS reported a 20% drop in hires between October and November 2024. Yet applications for jobs remain strong, up 8% year-over-year, painting a picture of rising competition for fewer roles.

For employers, this shift from a hyper-competitive hiring environment to one of relative stability brings new challenges:

• How do you retain talent without constantly opening new roles?

• What does workforce efficiency look like when hiring slows?

• How can upskilling offset a plateau in external recruitment?

Walmart’s Workforce Strategy: Key Trends Shaping Employers

In a year marked by cautious hiring and shifting priorities, Walmart has leaned into strategies that align perfectly with broader labor market trends. The company’s initiatives—boosting wages, expanding education, and reimagining benefits—exemplify how large employers are recalibrating to meet the needs of both their workforce and the market.

1. Higher Wages and Stability: How Walmart Prioritizes Retention

Walmart’s investments in pay mirror the increasing emphasis on workforce stability seen across industries. After promoting 310,000 associates to higher-paying roles in the past two years, the company made key adjustments to attract and retain talent:

• Store managers now earn an average of $128,000, up from $117,000.

• Bonuses were restructured to reward performance, with store managers eligible for up to 200% of their base pay.

• Hourly associates received access to a new annual bonus program tied to store performance and tenure, offering up to $1,000.

This focus on compensation reflects a fundamental truth in the current market: employees are staying put, but they still expect fair pay for their loyalty. Recent data on December workforce trends supports this, with 42% of employers crediting better compensation as a key reason for falling turnover rates.

2. Upskilling and Growth: Walmart’s Commitment to Workforce Development

With external hiring slowing, Walmart’s strategy to upskill its current workforce speaks to a growing realization among employers: sustainable growth requires developing internal talent.

• The company’s Live Better U program now offers 50+ certificates, which can be completed in four months at no cost to associates.

• Programs like Associate to Technician tackle skilled labor shortages while creating pathways to higher-paying roles like HVAC or facilities maintenance technicians.

• Walmart’s $1 billion investment in training by 2026 demonstrates a long-term commitment to internal skill growth.

This strategy isn’t unique to Walmart; it reflects a broader market shift. Employers across sectors are realizing that workforce efficiency doesn’t just mean doing more with less—it means doing better with what you already have. Upskilling also positions companies to weather shifts in hiring demand, particularly as sectors like healthcare and tech continue to expand despite overall slowdowns.

3. Supporting Employee Well-being: Walmart’s Holistic Benefits Approach

Compensation and career opportunities matter, but so does well-being. Walmart’s expansion of its Cancer Centers of Excellence program, giving associates access to leading experts at Mayo Clinic, underscores a deeper trend: employers are finally recognizing the importance of holistic support.

In an era where job security is at a premium, benefits that promote health, stability, and peace of mind have become powerful tools for retention. From our latest December workforce trends report, 47% of employers attribute falling turnover rates to improved job security, and 46% point to better work-life balance policies.

Walmart’s Workforce Strategy: Balancing Retention and Shifts in Priorities

While Walmart has prioritized wages, upskilling, and benefits, it has also recently scaled back some diversity, equity, and inclusion (DEI) initiatives. The company’s rollback of certain DEI roles and programs reflects a broader trend among employers navigating economic uncertainty and political and consumer scrutiny.

For many organizations, workforce strategies are increasingly focused on core areas like compensation, efficiency, and internal mobility. However, this shift raises important questions about the long-term impact on workplace culture and inclusion.

2025 Workforce Outlook: Navigating Retention and Efficiency

The emerging trends from Walmart’s playbook—wages, upskilling, and benefits—are a response to a labor market in transition:

• The “Great Stay”: Employees are increasingly opting to remain in their roles, driven by improved stability and fewer external opportunities. Turnover dropped 37% in 2024, per ZipRecruiter, signaling a profound shift from the days of the Great Resignation.

• Retention Over Growth: Employers are doubling down on retention strategies rather than chasing headcount expansion. Walmart’s promotion track and bonus structure reflect this shift.

• Skills Over Resumes: Employers are embracing skills-based hiring and internal upskilling to prepare for the next wave of growth.

• Workforce Efficiency: Companies are recalibrating hiring plans to focus on roles and sectors that align with long-term goals.

As Aura’s report highlights, innovation-driven industries like consumer electronics (+17% job postings) are still growing, while sectors like retail (-22%) and IT services (-21%) face headwinds. The ability to adapt—through upskilling, retention, and smart workforce management—will define winners in this next phase.

Workforce Lessons for Employers: Retention, Skills, and Resilience

Walmart’s workforce investments provide a template for strategic managers navigating this evolving labor market. While large-scale hiring may no longer be the norm, strategies that prioritize retention, well-being, and upskilling can build stronger, more resilient workforces.

Employers face a balancing act in 2025:

• Retaining current talent by improving compensation, stability, and well-being.

• Preparing for future growth by investing in skills and career development.

• Creating efficient, adaptive teams to weather economic uncertainty.

The companies that succeed will be those that recognize this moment for what it is: not a crisis, but an opportunity to rebuild stronger foundations for the future of work.

As 2025 approaches, the message is clear: retain, invest, and adapt. Whether you’re a global retailer or a mid-sized employer, the blueprint is the same—because in a cooling yet competitive job market, people are still your greatest competitive advantage.

Ready to align your workforce strategy with 2025 trends? Request a demonstration of Aura and unlock actionable insights for retention, upskilling, and workforce efficiency.