June 2016
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Major Companies See Success in Worker Investment

Saturday, May 28, 2016

Walmart and McDonald’s are following Chick-fil-A's example to mitigate widespread complaints about poor customer service. Both companies are investing heavily in wage increases for workers, and are already seeing positive results. "Associates are feeling a little bit more engaged," Walmart U.S. president Greg Foran said in a statement. The company has committed to investing $2.7 billion over the next two years to bolster workers’ paychecks, as well as increasing training programs and improving scheduling practices. "Our customers continue to tell us they are happy with the changes we're making in our stores, as evidenced by our customer-experience scores, which rose again this quarter versus last year," said Brett Biggs, executive vice president and chief financial officer of Walmart stores, in a statement. McDonald’s, too, has been investing in workers. The fast-food restaurant boosted its minimum hourly wage from $9.01 to $9.90 per hour last summer, and expects to surpass $10 per hour by the end of 2016. McDonald’s CEO Steve Easterbrook says the changes “have resulted in lower crew turnover and higher customer-satisfaction scores . . . and we are gaining share relative to the [fast-food] sandwich segment."

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