When Walmart promised, earlier this month, to hire any recently discharged veterans who want a job, it made headlines around the world. Veterans have had a disproportionately difficult time finding employment after finishing their military service: the Huffington Post reports that unemployment rates among veterans who served in Iraq and Afghanistan was 10.8 in December, compared to a 7.8% general unemployment rate. Homelessness has become rampant. According to the National Alliance to End Homelessness, nearly 63,000 were homeless on an average night in 2012.
This crisis situation was cited by Walmart as part of their reasoning behind the pledge. CEO Bill Simon also said, “Hiring a veteran can be one of the best business decisions you make. Veterans have a record of performance under pressure. They’re quick learners and team players. They are leaders with discipline, training, and a passion for service. There is a seriousness and sense of purpose that the military instills, and we need it today more than ever.”
These are all good reasons to hire veterans. But it’s hardly a comprehensive list. Other commentators have been quick to point out that Walmart, with its 37% annual employee turnover rate, has a gigantic, ongoing need for new hires. Adding 100,000 veterans over five years to the payroll, incredible as it may seem, doesn’t even make a meaningful dent in the face of that need. At the same time, Walmart will be entitled to specific tax incentive payments for hiring veterans.
Understanding Brand Values: Why Walmart Is Doing The Right Thing
What we’re interested in is what this pledge means for the Walmart brand. Walmart is a polarizing entity. The store has ardent fans; legions of them. There’s just as many critics out there, commenting on Walmart’s problematical sourcing, international bribery scandals and labor practices. One identifiable trend that has emerged over the course of Walmart’s recent history is the values-oriented response: when the critics have gotten too loud, the company responds with a headline grabbing initiative that puts the retailer in the best possible light in the eyes of its best customers. It hasn’t been long since we’ve heard about Walmart’s efforts to go green and promote sustainable choices. Now we’re seeing Walmart step up and offer employment to the nation’s veterans.
What’s going on here, and why is it working?
As we said in Customers First
Walmart knows, definitively, that their customers are patriotic. They want to support America, and by extension, her troops. Look at the core of Walmart’s audience. Generally Millenial-aged and older, these customers came up during or shortly after the end of the Viet Nam war. Soldiers returning at that time were not greeted with open arms: the social fallout from this resulted in the codification of a uniquely American value. No matter how ideologically reprehensible a military conflict may be, we hold the actual combatants blameless for their participation in it.
Walmart’s pledge is perfectly in alignment with the values of their best customers, who want to support the troops but heretofore have lacked a meaningful mechanism to do so. Conflating shopping at Walmart with supporting the troops allows shoppers to feel as if they’re making a positive difference while they’re doing something they’d already ordinarily be doing. The positive emotions evoked will strengthen the already strong brand between Walmart and their customer. This was a smart move that came out of understanding their customer’s psyche. Would it work for every brand? That’s an interesting question. We’d love to hear your thoughts.