Walmart is revamping its strategy for awarding raises to its hourly employees in U.S. stores by incorporating both performance and tenure into its new system.

According to an internal memo obtained by NewsNation, the retail giant will now base annual pay raises on a combination of years of service and three key criteria: reliability, store performance, and employees’ daily contributions. This shift was initially reported by Business Insider.

This performance-focused model represents a significant departure from last year’s approach, where pay increases were uniformly calculated based solely on years of service.