In 2017, Target was one of the first companies to say it would pay its retail workers at least $15 an hour, aiming to raise that amount by 2020.
Following this, other stores also increased their starting pay. For example, Best Buy and Amazon now pay at least $15 per hour, while Costco starts at $17 per hour.
Target is planning to raise starting pay for its employees again, this time offering up to $24 an hour, which is higher than its competitors.
However, not all workers will get this raise right away. The starting pay will depend on the location and the specific job. Target hasn’t said which areas or roles will get the higher pay.
Target’s CEO, Brian Cornell, said that the job market has changed, and they want to stay ahead in the industry.
Besides the pay raise, Target is also making health care benefits better. Before, employees needed to work 30 hours a week to get health care coverage, but now they only need to work 25 hours.
They’re also shortening the time it takes for employees to start getting these benefits.
In a press release, Melissa Kremer, Target’s chief human resources officer, said, “Our team is the key to our strategy and success. Their hard work helps us meet our customers’ changing needs every year.
We listen to them to understand what’s most important and use that feedback to make investments that support them at different points in their careers.”
She added, “We want all employees to be better off working at Target. Our investments in a positive work culture, good pay, better health benefits, and growth opportunities have helped them build rewarding careers.”
With about 350,000 employees and 1,900 stores across the U.S., Target plans to spend around $300 million in 2022 on these pay raises and added benefits.
Do you think other retailers will follow by increasing wages? Will a starting pay of $24 attract more people to work at Target?