For decades, Walmart was criticized for low pay and limited advancement opportunities, especially among its frontline workforce. But over the past ten years, the company has steadily raised wages—going from entry-level pay near the federal minimum wage to an average starting wage of $15.75 per hour, with an average hourly rate of $17.75 (and roughly $22.50 when overtime and benefits are included). These increases have not only improved earnings for Walmart’s 1.6 million U.S. employees but also pressured peers like Target, Lowe’s, and Home Depot to match or exceed the $15 starting threshold. Amazon has gone further, with starting pay around $18.50 and an average of $22 ($29 with benefits). Costco, long considered the benchmark for generous compensation in retail, pays an average of $28 an hour ($30 including bonuses).
Analysis of more than half a million employee reviews from Walmart, Target, and Costco over the past decade shows a clear divergence between corporate wage headlines and workers’ perceptions. While Walmart made early strides in improving satisfaction, particularly before the pandemic, the data suggest those gains have since plateaued. Average overall employee ratings and compensation-and-benefits scores both declined slightly during and after the pandemic and have yet to recover. Target shows a similar pattern, while Costco remains an outlier: its employee satisfaction consistently outpaces peers, with compensation ratings hovering above 4.2 out of 5—roughly a full point higher than Walmart and Target.
Despite substantial wage growth, Walmart’s compensation and benefits ratings remain around 3.1—essentially unchanged from a decade ago—compared with Target near 3.2 and Costco above 4.2. This suggests that higher wages alone have not fundamentally altered employees’ perception of fairness or overall job quality. The contrast underscores Costco’s long-standing model of combining high pay with strong benefits, predictable scheduling, and internal promotion pathways—elements often cited by employees as key drivers of satisfaction.
Walmart’s experience—now the subject of a forthcoming Harvard Business School case study—illustrates the complexities of transforming worker sentiment in large-scale, low-margin retail. While the company has helped shift industry norms on pay, it continues to face criticism for not providing a “living wage” and for the large share of its employees still relying on public assistance such as food stamps. The data make clear that real progress in employee satisfaction will likely depend not just on pay, but on broader improvements in work environment, benefits design, and career mobility.