Wal-Mart to give pay raises to most of its workers

NEW YORK (AP) — Wal-Mart is giving raises to the vast majority of its U.S. employees as part of the world's largest retailer's previously announced investment in its workforce.

Retaining and attracting workers is critical as a stronger labor market increasingly offers workers more opportunities to jump around.

"The competition for talent is strong," said Craig Rowley, global leader of consultancy Hay Group's retail practice.

Rowley says the turnover rate — the percentage of part-time workers who leave within a year— is now 67 percent for the retail industry, up from 50 percent during the recession.

Wal-Mart has already seen sales perk up in its U.S. business as customer experience improves in the stores.

[...] Wal-Mart's entry level pay is above the $9.26 average hourly pay for cashiers and low level retail sales staff, according to the Hay Group's survey of 140 retailers with annual sales of $500 million.

Wal-Mart's initial moves triggered complaints from workers who felt that the raises weren't spread out evenly.

—Wal-Mart is also enhancing its short-term disability plan, which now will cost less than the company's prior voluntary plan and provide more coverage.