Macy’s (NYSE: M) announced Tuesday that it will be increasing its minimum wage for employees to USD15 per hour as part of a corporate benefits bundle. Upon the change, the company said that its average base pay will be over USD17 an hour, and the average total pay will consist of USD20 per hour.
The package also includes free tuition and raises for employees of all ranks, which will cover 100% of costs including books and fees. Macy’s is teaming up with Guild Education to execute the program, set to include bachelor’s degrees, boot camps, English language learning, and professional certificates. The company anticipates the program to cost USD35 Million throughout the next four years.
“As we continue our transformation to be a digitally-led omnichannel retailer, a critical component of our growth includes investing in our talent and enhancing all aspects of their Macy’s, Inc. experience with a strong focus on advancement opportunities, culture and engagement,” Danielle Kirgan, Macy’s chief transformation and human resources officer, said in the company announcement.
“As a company, we’re driven by our mission to enable our colleagues’ success and be the preferred employer everywhere we do business, with competitive pay and benefits rooted in principles of equity,” she added. “This program removes a major barrier to accessing education and will help our colleagues to further develop their skills and grow their careers and earning potential.”
Additionally, the department store chain is updating its time-off policy to include more flexibility and an added paid holiday per year. Macy’s had previously introduced various bonus opportunities for workers last year.
Macy’s shares have risen over 177% throughout the year and has a current market cap of USD9.7 Billion.