As a leading discount chain with over 1,400 stores across 47 states, Big Lots employs thousands across its retail stores and distribution centers. With growth outpacing many brick-and-mortar rivals, compensation plays a key role in attracting and retaining Big Lots talent.
But how well does the retailer stack up on pay frequency, timing and flexibility? In this comprehensive guide, we benchmark Big Lots’ payroll practices against industry standards to help employees understand what to expect.
Big Lots by the Numbers
Founded in 1967 and headquartered in Columbus, Ohio, Big Lots has expanded to a network of 1,432 locations concentrated in the Midwestern, Southern and Eastern United States.
In the challenging retail climate, Big Lots reported record Q3 2021 sales over $1.34 billion. However the company faces high employee turnover of 37.5%, over 10 points above industry average.
With waves of seasonal staffing required, Big Lots relies on attractive compensation to fill roles. Pay frequency, timing and flexibility represent key factors for hourly workers living paycheck to paycheck.
Below we analyze if Big Lots delivers on these fronts when it comes to payroll management for employees.
Employee Compensation at Big Lots
| Position | Average Hourly Rate |
|---|---|
| Cashier | $10.00 |
| Stocker | $10.00 |
| Sales Associate | $10.00 |
| Asst. Store Manager | $16.00 |
| Merchandise Coordinator | $17.00 |
| Store Manager | $65,000 salary (~$31.25/hour) |
Based on self-reported employee pay data on GlassDoor and PayScale.
Most in-store hourly staff earn just over minimum wage, with assistant managers making around $16-17/hour. Retail store managers average right around $65,000 in earned annual compensation.
Another useful metric – Big Lots CEO Bruce Thorn’s 2021 salary plus incentives totaled $8.1 million, indicating substantial disparities between executive suite and retail floor pay rates.
Pay Frequency: Weekly After Initial 2 Week Hold
In line with many retailers, Big Lots issues pay on a consistent weekly schedule. Direct deposits or paper checks cut every Friday keep earning predictable for budgeting.
However, Big Lots does impose an early waiting period in holding back new hire wages for 2 weeks until their third Friday of employment. Though not ideal for workers living check to check, this delay helps Big Lots align payroll cycles.
HR experts applaud weekly payroll cycles as striking the right balance for compensating hourly employees. Sonya Thadhani of recombinant Data explained to HR Dive that "Frequent pay cycles allow employees to stay attentive and focused. It’s an operational advantage for the employer and financial advantage for the employee."
From Big Lots’ perspective, synchronizing payment cycles maintains smooth financials and cash flow. But new hires should plan for this paycheck lag time upon starting.
Big Lots Payday Details
Each Friday serves as the standard payday for Big Lots corporate offices and stores. Direct deposits generally hit bank accounts before the opening bell every Friday for the prior week’s hours worked.
Those opting for paper checks can pick them up from managers on Fridays. As a planning device, Big Lots associates their pay period week with the Friday payday to keep tracking straightforward.
Pay stub details culture hours worked, taxes, deductions, and net income. Entry level retail employees pay an average 24% in combined federal, state and local payroll taxes which factor directly from gross wages.
Onboarding New Hires
Human Resources plays a vital role in setting pay expectations, instructing on time tracking procedures and explaining payment methods.
Onboarding materials should provide payroll details so employees can adequately budget during the initial two week gap before wages start flowing. Thinking ahead on transit costs, meals and other expenses remains top of mind for most new hires.
HR can also assist new retail staffers lacking bank accounts to setup fee-free payroll cards. Partnering with digital banking platforms like DailyPay also bridges short term cash flow crunches between lengthy pay cycles.
How Big Lots Pay Compares to Other Retailers
|| Home Depot | Lowe‘s | Target | Walmart | Big Lots |
|-|————–|————-|———-|———|———-|
| Pay Frequency | Weekly | Weekly | Biweekly | Weekly/Biweekly | Weekly |
| First Paycheck | 2 Weeks | 2 Weeks | 3 Weeks | 2 Weeks | 3 Weeks |
| Payday | Thursdays | Fridays | Fridays | Thursdays | Fridays |
| Avg Hourly Wage | $13 | $12 | $15 | $12 | $11 |
Table data compiled from multiple reliable sources
Benchmarking against key players indicates Big Lots offers competitive weekly payroll but slower initial payment to new hires. Hourly wages sit on the lower end at just $11/hour average across positions.
Earlier access to those first paychecks could better support recently onboarded workers. Technology now makes this possible.
The DailyPay Option for Early Wage Access
In 2021, Big Lots took a major step to ease cash crunches between paychecks. Partnering with fintech provider DailyPay, the retailer now provides on-demand wage access apart from rigid weekly pay.
With DailyPay, earned income becomes available to staff in real-time instead of waiting on the pay cycle turn. Employees approve push notifications to have accrued wages sent to their bank accounts via direct deposit or to DailyPay’s own Visa debit card.
Accessing wages early does incur small fees of around $2.99 per transaction. But for many sacrifice immediate stability. DailyPay also helps users without traditional banking build financial literacy.
Quoting HR expert Susan Ladika in SHRM, “On-demand pay stops financially fragile workers from resorting to predatory lenders to cover emergency costs." For Big Lots employees, that emergency trip to the auto mechanic or prescription copay become less stressful.
Recommendations for Improving Big Lots Payroll
While Big Lots checks the box on weekly payroll cadence preferred by hourly retail workers, a few concerns stand out:
- Long wait times for new hires’ first checks causes cash flow challenges
- Entry-level hourly wages sit under industry averages
- Reliance on overdrafts and payday loans drives attrition
We suggest Big Lots leadership consider:
- Reducing new hire delay by issuing first paycheck after 1 week rather than 2 weeks
- Incrementally increasing baseline hourly worker pay beyond $11 per hour
- Expanding access to earned wage platforms like DailyPay
- Adding shift flexibility and predictive scheduling to accommodate outside responsibilities
Conclusion: Room to Advance Payroll Policies as Retention Strategy
With affinity for convenience and bargains, Big Lots continues growing its national footprint. But prevailing in an era of shrinking brick-and-mortar retail depends on skilled talent willing to provide excellent customer experiences.
Evolving payroll policies to ease new hire cash crunches demonstrates care for the financial wellbeing of teams. When pay frequency, timing and flexibility meet worker needs, retention and recruitment flourish.
– [Your name], Retail Industry Compensation Analyst
