From $8 Hourly to $500,000 Annually: How a Walmart Manager’s Journey Reflects the Retail Giant’s Shift in Pay Strategy

Mustafa Tovi, a employee at Walmart for 25 years has climbed the ranks to make six figures.

Mustafa Tovi is riding the high of a particularly gratifying week. Not one to easily get emotional, Tovi recalls folding when he received a significant call from Walmart, the company where he has dedicated decades of his professional life. On Father’s Day, Tovi shared tears of joy with his family upon learning of his promotion to the position of emerging market manager—a role he had long aspired to achieve.

From Humble Beginnings to Career Milestones

Tovi, now 45, fondly reminisces about his early days at Walmart. His journey began on July 15, 1999, when he applied for a part-time position at the encouragement of his wife, who was already an employee there. On the very same day, he was offered the job, earning $8 per hour—a significant amount for him at the time. “I was on top of the world,” he recalls, noting that this rate was considerably better than what other retailers were offering.

His career at Walmart progressed rapidly. Within just 90 days, he advanced to the role of deployment manager, where he oversaw various projects. His dedication and performance led to further promotions: first to assistant manager, then co-manager, and eventually store manager. For the past 16 years, Tovi has excelled in this role, marking his 25th anniversary at Walmart this year. He attributes his success to the mentorship and support he received, which provided him with new opportunities and kept him motivated. “That’s what keeps me around,” he says, reflecting on his journey.

Financial Success and Company Rewards

Today, Tovi enjoys a substantial base salary of $168,000, up from $143,000 in 2023. Under Walmart’s new pay policy, he stands to earn even more. The policy includes increased base pay and stock plans, such as a grant for managers worth up to $20,000. Last year, Tovi’s total earnings, including a $183,000 bonus, amounted to approximately $326,000. With the new compensation structure, he could potentially earn up to $524,000, factoring in a bonus that could reach up to 200% of his base salary if he meets his goals, as well as new stock investments. Anne Hatfield, a Walmart spokesperson, explains that the company rewards store managers for growing their businesses, linking their bonuses to store profits.

Addressing Walmart’s Reputation

Walmart has long faced criticism for its treatment of hourly employees, who have often been paid so little that they qualify for government assistance. A 2020 Government Accountability Office report named Walmart as the top employer of Medicaid enrollees in three states and the top employer for SNAP recipients in five states. Despite its billion-dollar valuation, many Walmart workers have not reaped the benefits.

Journalist Charles Fishman noted that Walmart increased wages not just due to a tight job market but also because it recognized the insufficiency of its previous pay rates. “Those wages, and that plan, is serving Walmart well as the competition tightens up,” he explained. However, these changes have led to challenges, including management rank cuts that increased workloads for remaining employees, as reported by Bloomberg. The onset of COVID-19 exacerbated these issues, adding further strain.

The Pandemic’s Impact and Industry Shifts

The pandemic shifted power towards workers, compelling large retail and fast-food companies to offer fairer, more competitive wages due to staffing shortages. This led to a significant increase in turnover rates in industries marked by minimum wages, such as hospitality and restaurants. Companies like Raising Cane’s and Chipotle have responded by offering six-figure salaries to address retention, remain competitive, and comply with increased pressure from local groups advocating for higher wages amidst inflation.

Tovi’s Personal Triumphs

Tovi’s story is one of perseverance and resilience. When he started at Walmart, he and his wife aimed to achieve financial stability to support their family and purchase a home. Today, they have three children and own a beautiful home in Plano, Texas. They have also invested in real estate, leasing out several properties. Tovi’s journey is particularly remarkable considering his background: he fled Kurdistan, spent years in Turkey, and immigrated to the United States in 1991. He attributes his success to his faith and Walmart, expressing deep gratitude for the opportunities he has received. “I thank God every day, I thank Walmart every day because of Walmart, the reason why I have what I have today,” he says.

Mentorship and Future Goals

Tovi’s goal is to help others achieve similar success. He takes pride in mentoring and supporting his colleagues. In his building alone, four associates have been promoted to managers within the past four months. Tovi cherishes the success stories of those he supervises, such as Miranda, who recently became a store manager. He values the bond and hard work that led to her promotion, noting that they speak multiple times a day.

As Tovi steps into his new role, he is focused on excelling and continuing to support others. His ultimate dream is to become a regional vice president and make a significant impact on those around him. He emphasizes that his story is not unique and believes that with hard work and dedication, anyone can achieve similar success. “With hard work and dedication, anyone can do it,” he says, underscoring the potential for success through perseverance and commitment.

Broader Implications for Retail Workers

Walmart has made efforts to improve wages and opportunities for its employees. The company recently introduced a new bonus program and training initiatives to help associates advance to technician roles. According to Hatfield, Walmart has raised frontline wages by approximately 30% over the past five years, bringing the U.S. average hourly wage close to $18. However, critics argue that this is still insufficient in the current economy, advocating for a $20 minimum wage nationally. The Fight for $15 campaign and other groups now say that a $20 minimum wage is necessary.

While retail workers, particularly at Walmart, have seen some improvements, there are still disparities. The company’s pay structure changes last year meant some entry-level employees made less than they would have previously. Nevertheless, Tovi is optimistic about the future, focusing on spreading opportunities and encouraging others to pursue their career goals with determination and hard work.

Conclusion

Mustafa Tovi’s journey at Walmart is a compelling story of resilience, dedication, and the pursuit of the American Dream. From his humble beginnings as a part-time employee to his recent promotion to emerging market manager, Tovi’s career progression highlights the importance of mentorship, support, and perseverance. As he takes on his new role, Tovi remains committed to helping others achieve similar success, exemplifying the impact that one person can have in fostering growth and opportunity within a large organization.

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