Walmart Inc.
WMT,
+0.29%

is offering weekly bonuses to many warehouse employees to forgo August vacations, as the country’s biggest retailer ramps up for the holiday shopping season with a tight labor market and stretched supply chains.

The warehouse worker bonus varies by location and job type. Some workers have been offered $200, others as much as $500. The majority of Walmart’s 190 U.S. warehouses are offering the weekly bonus to those who stay on the job and, in some cases, work more hours, according to a person familiar with the situation.

Walmart aims to acknowledge the efforts of employees with incentives, and provide opportunity in a competitive job market, said a Walmart spokesman. The retailer’s distribution warehouses “continue to see high volume as we are preparing for peak season,” he said. Walmart is the country’s largest private employer with 1.6 million U.S. workers, most of which are hourly workers in stores and warehouses.

Retailers and other businesses are straining to hire workers and face a global supply chain snarled by the pandemic and other factors as demand for many products and services grows.

An expanded version of this article appears on WSJ.com.

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