By Shawnice Meador
Executive Director,
Public Ed Works

RALEIGH (November 20, 2025) – When Walmart made the bold decision in 2015 to raise its starting hourly wage by 24% – impacting nearly half its more than 1 million U.S. hourly employees –investors initially reacted with shock. Shares fell 10% in a single day, erasing $21.5 billion in market value.

Yet, a decade later, that decision is celebrated as a turning point in talent management, documented in a Harvard Business School case study. By investing in employees through higher pay and professional development, Walmart reduced turnover by over 10%, improved worker effectiveness, and positioned itself for long-term success.

North Carolina’s public education system faces a parallel challenge: Teacher retention. The lessons from Walmart’s strategy offer a roadmap for how paying teachers competitively and investing in their growth and retention can strengthen our schools and help children – our future workforce – thrive.

Like Walmart’s hourly employees, North Carolina teachers are underpaid relative to the demands of their work. Beginning teacher pay in North Carolina ranks 39th–42nd, depending on the source. North Carolina’s average teacher pay ranks 43rd in the nation. About one in 10 teachers leave their positions each year, forcing schools to scramble for replacements and leaving many classrooms understaffed.

Critics often worry about the cost of raising teacher pay, just as Walmart faced skepticism from investors in 2015. And unlike Walmart employees, teachers must have four-year degrees.

But evidence shows that short-term expenditures can yield long-term gains. Walmart’s example demonstrates that raising wages is not merely a kind gesture – it is a strategic investment in talent.

By increasing pay and supporting career growth, Walmart created stability and commitment. Similarly, investing in teachers through competitive salaries, professional development, and programs that cultivate future educators can reduce turnover and improve the learning environment across North Carolina.

Our state can no longer afford to underpay the very individuals who shape the next generation of leaders and innovators.

Walmart’s investment in higher pay has paid off. In September 2025, the company reported that one-fifth of its U.S. workforce were hourly associates back in 2015 – and they have stayed with the company for the past decade.

Teacher turnover in North Carolina is high, leaving many classrooms understaffed and educators burned out. Districts lose both money and capacity when teachers leave.

The Learning Policy Institute estimates that large school districts in the U.S. spend, on average, nearly $25,000 to replace a departing teacher, factoring in separation, recruiting, hiring, and training. Like Walmart, school districts operate in high-stakes, resource-constrained environments where retaining skilled personnel is critical.

It is time for the North Carolina General Assembly to take a page from Walmart’s playbook and invest in talent. Lawmakers must pass a full budget. Current signals, however, suggest this may not happen until well into 2026.

Just as Walmart leveraged higher wages and professional development to transform its workforce, North Carolina must invest in teachers to build a stronger, more stable, and more effective public education system. Competitive salaries, meaningful professional growth, and robust teacher pipelines are not luxuries — they are necessities.

If we want North Carolina’s children to thrive, it begins with valuing the educators who guide them, as smart investments in people yield long-lasting, positive outcomes.

---

References

• Nassauer, Sarah. “Walmart, Once a Byword for Low Pay, Becomes a Case Study in How to Treat Workers.” WSJ, October 17, 2025.
• Harvard Business School Case 819-042. “Walmart’s Workforce of the Future.” July 2019.
• EducationNC. “Governor Stein’s First Budget Proposal Includes Average 10.6% Teacher Raises, Restores Master’s Pay.” March 2025.
• NC General Assembly. HB 192, 2025. Raise Teacher Pay & Dollar Allotment Study. 
• Walmart News. “Shaking Up the System.” September 25, 2025.
• EducationNC. “What No Budget Means for Teacher Pay.” June 2025.
• NC Department of Public Instruction. FY 2025–26 Salary Schedule. October 15, 2025.
• News & Observer / WUNC / AP reporting on teacher shortages and retention challenges in NC (2024–2025).
• NC DPI. 2023–2024 State of the Teaching Profession in North Carolina Report, April 15, 2025.
• Learning Policy Institute. “2024 Update: What’s the Cost of Teacher Turnover?” Turnover Calculator Tool. September 2024.

Portions of this article were created or researched using AI tools. Sources were verified by Shawnice Meador.