:DOPDUWV+505HFUXLWPHQW6HOHFWLRQ(PSOR\HH5HWHQWLRQ3DQPRUH,QVWLWXWH

Panmore Institute

BUSINESS, MANAGEMENT

Walmarts HRM: Recruitment, Selection,

Employee Retention
UPDATEDSEP 1, 2015 | ANDREW THOMPSON

Walmarts human resource management

addresses recruitment needs using
different recruitment sources and
methods suited to different positions in
the organization. The company also uses
retail industry-specific criteria in its
selection process. To optimize employee
A Walmart store in Quebec, Canada. Walmarts human
retention, Walmarts human resource
resource management uses recruitment, selection and
management strategy includes a
retention approaches to optimize HR capacity. (Photo: Public
continually evolving compensation
Domain)
program, together with employeerelations management and career development. The firms HR managers also use other
approaches to improve morale and motivation in the workforce. Through this
combination of approaches and strategies to address business needs in recruitment,
selection and retention, Walmarts human resource management effectively maintains
adequate human resources to support the firm current retail operations and planned
future global expansion.
This article is part of a series on Walmarts human resource management:
1. Walmarts HRM: HR Planning, Job Analysis & Design
2. Walmarts HRM: Recruitment, Selection, Retention
3. Walmarts HRM: Training, Performance Management
KWWSSDQPRUHFRPZDOPDUWKXPDQUHVRXUFHPDQDJHPHQWUHFUXLWPHQWVHOHFWLRQHPSOR\HHUHWHQWLRQ





:DOPDUWV+505HFUXLWPHQW6HOHFWLRQ(PSOR\HH5HWHQWLRQ3DQPRUH,QVWLWXWH

4. Walmarts HRM: Compensation, Career Development

Walmart Recruitment Practices

Recruitment Sources. Walmarts human resource management uses internal and
external recruitment sources for various positions. The use of internal recruitment
sources focuses on current employees to fill open or new positions at Walmart. External
recruitment sources have the benefit of accessing the labor market to address the
human resource management objectives of the firm. This combination helps ensure that
Walmart is flexible enough in satisfying its HR needs.
Walmarts uses different types of internal recruitment sources. The following are the
most significant in the company:
1. Current employees
2. Trainees
3. Transfers
Current employees are a recruitment source especially for supervisory and managerial
positions. For example, Walmarts human resource management supports the
promotion of hourly sales employees to managerial positions. About 70% of the
companys managers started as hourly sales employees and were promoted to their
current positions. Walmart uses current employees as the biggest internal recruitment
source. The companys human resource management also uses on-the-job trainees as an
internal recruitment source. There is only a small population of trainees working for
Walmart, such as in positions in sales and marketing. Occasionally, the firm absorbs
trainees in the positions for which they trained. This approach has the advantage of
minimizing additional human resource management spending and ensuring person-job
fit. In addition, transfers are used to temporarily fill positions at Walmart, based on
current short-term HR needs. In this human resource management approach to
recruitment, some current employees are transferred to other positions or locations to
fill gaps in the workforce. Walmart sometimes uses transfers to satisfy high HR needs
during Black Friday.
Walmarts human resource management uses various external recruitment sources. The
following are the most significant for the firm:
1. Respondents to job advertisements
KWWSSDQPRUHFRPZDOPDUWKXPDQUHVRXUFHPDQDJHPHQWUHFUXLWPHQWVHOHFWLRQHPSOR\HHUHWHQWLRQ





:DOPDUWV+505HFUXLWPHQW6HOHFWLRQ(PSOR\HH5HWHQWLRQ3DQPRUH,QVWLWXWH

2. Campuses
3. Previous applicants
Respondents to job advertisements are the biggest external recruitment source used at
Walmart. The companys website is the main human resource management portal for
this recruitment source. Job openings are regularly posted on Walmarts corporate
website for interested applicants. This recruitment source has the benefit of minimizing
costs in reaching applicants. In addition, the firms human resource management has
recently emphasized campuses as a significant external recruitment source. In
particular, American Public University (APU) entered an agreement with Walmart to
give academic credits to the companys employees, based on duration of employment
and performance reviews. This strategy promotes APU, while also improving Walmarts
human resource management ability to reach out to APU students interested in working
at the company. Thus, this external recruitment source increases the firms reach into
the labor market. Previous applicants are a less significant external recruitment source
used at Walmart. The companys human resource management objective in using this
source is to maximize cost-effectiveness of recruitment. Many of these previous
applicants were already evaluated but were not hired or did not pursue employment at
Walmart. Thus, in using previous applicants as an external recruitment source, the
company does not need to perform another extensive evaluation of these workers,
thereby helping to maximize the cost-effectiveness of human resource management.
Recruitment Methods. Based on the recruitment sources used at Walmart, the
corresponding recruitment methods are direct and indirect. In using direct methods, the
company directly contacts prospective employees. For example, Walmart occasionally
recruits at/through campuses. The firms human resource management contacts
students who might be interested to apply for job openings. The benefit of this method is
that it allows Walmart to speed up the recruitment process instead of waiting for
applicants. The method also enables the company to apply certain criteria in selecting
students to contact. For example, representatives of Walmarts human resource
management can contact students in business-related degree programs for supervisory
or managerial job openings. However, the direct method of recruitment is
disadvantageous because it limits the population of potential recruits.
In using indirect methods of recruitment, Walmarts human resource management
objective is to reach out to a larger population of workers. These methods include
advertisements on the companys website and on other media. Indirect methods of
recruitment provide the majority of Walmarts human resources. These advertisements
KWWSSDQPRUHFRPZDOPDUWKXPDQUHVRXUFHPDQDJHPHQWUHFUXLWPHQWVHOHFWLRQHPSOR\HHUHWHQWLRQ





:DOPDUWV+505HFUXLWPHQW6HOHFWLRQ(PSOR\HH5HWHQWLRQ3DQPRUH,QVWLWXWH

have a global reach, thereby providing large-scale support for the companys HR needs.
Also, indirect methods can be cost-effective. In using its corporate website for the job
advertisements, Walmart minimizes human resource management costs in the aspect of
recruitment.

Selection Process at Walmart

Selection Criteria. Walmarts selection criteria depend on the job position. Basic criteria
include education and training background and results of criminal background checks.
For hourly sales positions, Walmart uses knowledge retention (e.g. on product details)
and interpersonal skills. Interpersonal skills are essential for these positions because
sales personnel directly communicate with customers. Walmarts human resource
management also uses analytical and problem-solving abilities and conflict management
skills for supervisory and managerial positions. Supervisors and managers are expected
to analyze and solve problems, and resolve conflicts in the workplace.
Methods & Techniques. Walmarts human resource management uses structured
interviews and job knowledge evaluation for most job positions in the organization.
Structured interviews are used to determine details like the applicants perspective and
expectations about Walmart. This information determines the person-job and personorganization fit. Walmart also uses personality tests and situational judgment tests for
many positions, although these tests are typically used for managerial positions,
especially for positions in human resource management, finance and others. Personality
tests help in deciding whether the applicant could function well in the context of the
companys culture and nature of business. Situational judgment tests determine
analytical and problem-solving abilities. These different tests ensure a comprehensive
human resource management approach for the selection of workers throughout the
global structure of Walmart.

Walmarts Employee Retention Programs

Employee retention is a critical concern for Walmart because the company suffers from
relatively high turnover, especially among hourly sales employees. To address this
situation, the companys human resource management uses the following retention
strategies:
1. Recognition
2. Bonuses
KWWSSDQPRUHFRPZDOPDUWKXPDQUHVRXUFHPDQDJHPHQWUHFUXLWPHQWVHOHFWLRQHPSOR\HHUHWHQWLRQ





:DOPDUWV+505HFUXLWPHQW6HOHFWLRQ(PSOR\HH5HWHQWLRQ3DQPRUH,QVWLWXWH

3. Training and development

4. Promotions
5. Academic credit
Walmart gives non-financial recognition for excellent employees, such as topperforming employees in each store. Bonuses are based on business performance,
although this strategy is usually used for managerial positions. Walmarts human
resource management includes promotions and training & development to support the
companys HR needs and increase employee morale. The company promotes hourly
sales employees to supervisory, then to managerial positions. The firms agreement with
American Public University to give academic credit for work experience at Walmart is a
long-term retention strategy for employees pursuing a career to climb the companys
corporate ladder.

References
Alfes, K., Shantz, A. D., Truss, C., & Soane, E. C. (2013). The link between perceived
human resource management practices, engagement and employee behaviour: a
moderated mediation model.The International Journal Of Human Resource
Management,24(2), 330-351.
Bloom, N., & Van Reenen, J. (2011). Human resource management and
productivity.Handbook of Labor Economics,4, 1697-1767.
Ferguson, K. L., & Reio Jr, T. G. (2010). Human resource management systems and
firm performance.Journal of Management Development,29(5), 471-494.
Greenhouse, S., & Barbaro, M. (2006, October 2). Wal-Mart to Add Wage Caps and
Part-Timers. The New York Times.
Guest, D. E. (2011). Human resource management and performance: still searching
for some answers.Human Resource Management Journal,21(1), 3-13.
Jiang, K., Lepak, D. P., Han, K., Hong, Y., Kim, A., & Winkler, A. L. (2012). Clarifying the
construct of human resource systems: Relating human resource management to
employee performance.Human Resource Management Review,22(2), 73-85.
Jiang, K., Lepak, D. P., Hu, J., & Baer, J. C. (2012). How does human resource
management influence organizational outcomes? A meta-analytic investigation of
mediating mechanisms.Academy of Management Journal,55(6), 1264-1294.
Lengnick-Hall, C. A., Beck, T. E., & Lengnick-Hall, M. L. (2011). Developing a capacity
for organizational resilience through strategic human resource management.Human
Resource Management Review,21(3), 243-255.
Muethel, M., Gehrlein, S., & Hoegl, M. (2012). Sociodemographic factors and shared
KWWSSDQPRUHFRPZDOPDUWKXPDQUHVRXUFHPDQDJHPHQWUHFUXLWPHQWVHOHFWLRQHPSOR\HHUHWHQWLRQ





:DOPDUWV+505HFUXLWPHQW6HOHFWLRQ(PSOR\HH5HWHQWLRQ3DQPRUH,QVWLWXWH

leadership behaviors in dispersed teams: Implications for human resource

management.Human Resource Management,51(4), 525-548.
Tabuchi, H. (2015, June 3). Walmart Adjusts the Thermostat to Warm Worker
Relations. The New York Times.
Wal-Mart Stores, Inc. (2015). Walmart Form 10-K, 2015.
Wal-Mart Stores, Inc. (2015). Walmart Human Resources.
Wal-Mart Stores, Inc. (2015). Walmarts Official E-commerce Website.
Zimmerman, A. (2004, August 12). Wal-Mart to Toughen Job Screening. The Wall
Street Journal.
TAGS:
CASE ANALYSIS,CASE STUDY,HR MANAGEMENT,HUMAN RESOURCES,RETAIL,STRATEGY,
WALMART,WALMART HUMAN RESOURCE MANAGEMENT
PUBLISHED: SEP 1, 2015
UPDATED: SEP 1, 2015
COPYRIGHT NOTICE:
This article may not be reproduced, distributed, or mirrored without written permission from Panmore
Institute and its author/s. Copyright by Panmore Institute - All rights reserved.

KWWSSDQPRUHFRPZDOPDUWKXPDQUHVRXUFHPDQDJHPHQWUHFUXLWPHQWVHOHFWLRQHPSOR\HHUHWHQWLRQ