Bentonville, Ark. - Hoping to shed its reputation for offering little more than dead-end jobs, Wal-Mart, the nation's biggest private employer, is giving raises to nearly a half-million workers and offering what it says are more opportunities for advancement.

Wal-Mart told The Associated Press that as part of $1 billion its spending to change the way it trains and pays workers, the company will give raises to nearly 40 percent of its 1.3 million U.S. employees in the next six months.

In addition to raises, Wal-Mart said it plans to make changes to how workers are scheduled and add training programs for sales staff so that employees can more easily map out their future at the company.

The company said the changes, which were announced on Thursday as Wal-Mart reported better-than-expected fourth-quarter results, will hurt profits this year.

"We are trying to create a meritocracy where you can start somewhere and end up just as high as your hard work and your capacity will enable you to go," CEO Doug McMillon told the AP during an interview this week at the company's headquarters in Bentonville, Ark.

The changes come at a time when there's growing concern for the plight of the nation's hourly workers.

Thousands of U.S. hourly workers and their supporters have staged protests across the country in the past couple of years to call attention to their financial struggles. Business groups and politicians have jumped into the fray, debating a proposal by President Obama to raise the federal minimum wage from $7.25 to $10.10 an hour. And a new Associated Press-GfK poll found that most Americans support increasing the minimum wage.

At the same time, competition for retail workers is becoming increasingly stiff. As shoppers get more mobile savvy, retailers are seeking sales staff that's more skilled at customer service. But in the improving economy, the most desirable retail workers feel more confident in hopping from job to job.

Wal-Mart, which has struggled for two years with sluggish sales, follows other big retailers that have announced plans to increase pay for their workers. Swedish home furnishings retailer Ikea this year gave thousands of workers at its U.S. division a 17 percent average raise to $10.76 an hour. And clothing chain Gap Inc. raised its minimum hourly wage to $9 last year and to $10 this year.

Because of its massive size and impact, Wal-Mart has faced outsized pressure by organized labor groups to raise its starting hourly wages to $15 and provide workers with more consistent hours. With its new changes, the company's average full-time wage will be $13 an hour, up from $12.85.

For part-time workers, the hourly wage will be $10, up from $9.48.

That's below the $14.65 average that hourly retail workers in a non-supervisory role earn, according to government data that includes people who work at auto dealers and other outlets that would likely pay more than discounters like Wal-Mart. But it's above the $9.93 average hourly pay for cashiers and low level retail sales staff, according to Hay Group's survey of 140 retailers with annual sales of $500 million.

Ed Lazear, a Stanford University economics professor who served as an informal adviser to Wal-Mart during the past year for the program, applauded Wal-Mart's moves.

"It's positioning itself to be competitive," he said. "This is a step in the right direction."

Plans include:

• Start raising entry level wages to at least $9 an hour in April and to at least $10 an hour by February of next year.

That includes the less than 6,000 workers who make the federal minimum wage. Sam's Club locations will offer a starting hourly wage of at least $9.50 or higher in all markets, and at least $10.50 by next year.

• Raise the floor and ceiling of its pay range for each position in most stores. For example, the pay range for cashiers is $7.65 to $16. The new range will be $9.00 to $17.55.

• Raise the starting wage for some department managers to at least $13 an hour by this summer and at least $15 an hour by early next year.

• Give newly hired workers a $9 per hour training wage and when they successfully complete the six-month training program, raise it to $10 an hour. Those workers can pursue one of three career paths: hourly supervisor, a specialty path like working in a bakery or deli.

or expand their skills in their current role.