Target Corporation (NYSE: TGT) plans to raise its minimum starting pay for employees to $12 per hour later this spring, which is the second time in less than a year that the company raises its hourly wages.
Last fall, the company increased its minimum starting pay to $11 per hour, and its hourly wage was higher than the starting pay in 48 states. By 2020, the company planned to offer workers $15 per hour, said Brian Cornell, the CEO of Target, on Tuesday.
Brian also mentioned that after announcing an increase in hourly wage to $11 per hour last fall, there was a significant rise in candidates of better quality. The number of applicants was up by 60% after increasing minimum wage by $2.
Target is not the only company that increases its starting pay. In January, Walmart said that it planned to increase its minimum wage for U.S. employees. Before the rise in pay, the hourly wage was $9 per hour, and would rise to $10 per hour after the training program.
In addition to increase starting pay, Target also make other investments to be more competitive. On Tuesday, Brian announced that the company is bringing “Drive Up,” which is a service available via Target’s app. The service allows customers to have online orders brought to their cars, according to the company.