Why Walmart Buys Into the Career Growth of Its Workers

BY Erika Riley | November 04, 2022

As the largest corporate employer in the U.S., with more than 1.7 million domestic employees, Walmart is a trend-setter in HR just by the impact of its scale. So when Walmart makes a decision, it commands attention. In the past year, the company has doubled down on its commitment to career growth, deciding there should be no employee left behind.

To make that happen, Walmart has embarked on an ambitious campaign of teaching its workers new skills via a medley of programs. “Our vision is–and it’s very lofty–we want to redefine what education means in this country, full stop,” said Lorraine Stomski, senior vice president of associate learning and leadership, who is essentially Walmart’s dean of continuous learning. Stomski shed light on the how and why of Walmart’s efforts in a fireside chat with Romesh Ratnesar, opinion editor at Bloomberg, part of From Day One’s October virtual conference on corporate learning and development. Among the highlights:

A Commitment to Teaching New Skills

Walmart’s most recent commitment to upskilling and career growth includes a promise to invest $1 billion over the next five years. Through this investment, the company is now able to offer free tuition and books to all of its associates through its Live Better U (LBU) program, and has consolidated all of its learning platforms into one called Walmart Academy. The educational push is part of Walmart’s greater effort to retain workers by focusing on well-being, advancement, and more competitive wages.  

The commitment to upskilling and career growth has been integral to the company since its beginnings, Stomski said. She explained that founder Sam Walton always wanted to expose people to different jobs and roles and let employees work their way up the corporate ladder. That commitment still rings true today–75% of Walmart’s managers started as hourly associates, including the current CEO, Doug McMillon.

“What I love about that mindset is [Walton] really introduced the notion early on that in order to build great leaders and great associates in the company, you have to be exposed to the entire company to understand it,” Stomski said.

Walmart’s Lorraine Stomski, at right, speaking with Romesh Ratnesar of Bloomberg (Image by From Day One)

Stomski was drawn to Walmart for its values and company culture. Originally from New York City, she doubted she’d find life fulfilling in Bentonville, Ark., where Walmart is headquartered. But after interviewing for her role, she found she loved the company’s culture and couldn’t turn the opportunity down. “It’s the hardest job I’ve ever had. It's the most fulfilling job,” Stomski said. “Because our purpose and what we are trying to do on behalf of our associates and our customers is nothing I’ve ever experienced.”

Before 2022, the company operated separate learning institutions under each of the company’s different banners. For example, Sam’s Club employees had different learning options than Walmart employees. By unifying all learning opportunities within the Walmart Academy, the company is able to diversify its offerings for employees globally.

Offering Diverse Education Options

Live Better U, Walmart’s college offering that allows employees to pursue degrees and certificates, operates under the Walmart Academy umbrella. In the past, U.S.-based Walmart employees could take advantage of degree and certificate programs through LBU for $1 a day. Walmart waived the cost in the summer of 2021. 

“You know, for somebody that’s working in a store or a club in the frontline, that’s a significant investment. And we forget that,” Stomski said. “So I am so appreciative of the leadership team at Walmart. They said, ‘Take it away, remove the obstacle,’ and we had a 66% increase in enrollment.” More than 89,000 associates have enrolled in LBU, and 15,000 have completed a degree program over the last four yearsBut Live Better U is just one part of Walmart Academy, which  consists of three “rungs,” Stomski said:

•The first rung is helping employees improve the skills required for their current jobs.

•The second rung is Live Better U: preparing employees for jobs they may have in the future through upskilling and completing courses. Live Better U is made possible through Guild Education, which focuses specifically on adult education. “Adult learners have challenges finishing their credential degrees. And that’s why we end up with tons of debt. Guild partners with educational institutions that truly understand how adult learners learn and how to help them complete their credentials should they need it,” Stomski said. “So that was a really big turning point for us in helping our associates who wanted to get credentialed do that.”

Walmart associates can earn college credit for their jobs, further helping them pursue higher education. Guild also offers learners educational coaches to help Walmart associates find the best program for them. Of course, not all associates want to pursue a college degree, and Walmart Academy’s options reflect that. Live Better U offers short-form courses and high school completion programs in addition to traditional college degrees.

Walmart Academy graduates with company CEO Doug McMillon, who started at the company as an hourly worker (Photo courtesy of Walmart)

•The third rung of Walmart Academy is about creating a company culture, which Stomski says is vital for managers. Creating a cohesive culture can be difficult in an organization where so many employees haven’t had the time off from working in-person.  “And let’s not forget, we just came out of two years of working from home. But our store managers and associates, who have been there from day one, did not get that luxury of working from home,” Stomski said. “And so when you think about how do you instill culture across 2.3 million associates, that’s pretty intense.”

By investing $1 billion, making college education free for all employees, and introducing skills learning through Walmart Academy, Walmart has become a company on the frontline of workforce development. Since LBU’s initial launch in 2018, the program has helped employees save $333 million in tuition costs, helping thousands of employees avoid student debt.

Helping Employees Level-Up

Stomski is aware that many people might expect Walmart employees to move on from the company once they have completed their education. But Stomski sees it differently. Walmart wants its associates to build careers with them–but that doesn’t mean they need to stay forever. For the associates who do stay, the company has opportunities for those who want to scale up.

Stomski shared the story of one associate who was never able to get her degree the “traditional” way while working on and off at Walmart. She finally completed her bachelor’s degree in just two years with LBU and later landed a job at Walmart as a project analyst.

“It’s a no brainer: We want you to stay. But man, if there’s a better opportunity, and you want to build and grow your skills, we say, ‘Absolutely do it, we support you. And by the way, we welcome you to come back,’” Stomski said.

Stomski said she takes pride in the company’s offering of so many educational opportunities through Walmart Academy, which sees as the right thing to do when operating in a country whose residents carry a total of $1.6 trillion in student debt. 

While Stomski knows that most companies don’t have the financial resources that Walmart does, she encourages employers to scale upskilling offerings to their own situations by identifying skill gaps and accelerating pathways to the jobs of the future.

Another way to be more inclusive is to offer jobs to people without a lofty education. Many of Walmart’s associate positions do not require a college degree. The company has started analyzing which job listings should mention degrees at all. Instead, Stomski says, the listing can focus on the skills or attributes needed for the role.

“Look for all the talent in unique places, be inclusive in your search, and be very clear on what’s required in the role so that you can determine whether or not a credential is something that you need in addition to your upskilling strategies,” Stomski said. Adding new kinds of jobs to the ecosystem has also helped the company stop and analyze what is needed for each individual role, including credentials. 

Looking to the future, Walmart aims keep expanding its commitment to education. “We’re actually increasing our investment year over year, even in the challenging times that we’re in,” Stomski said. “There’s not even a debate because we want our associates–if they choose to stay with us–to build a career.”

Erika Riley is a Maryland-based freelance writer. She worked at the busiest Walmart on Long Island as a cashier in 2016, and she still considers it one of her most important learning experiences.