Target (NYSE: TGT) announced Monday that it would be increasing its starting wage up to USD24 an hour for specific roles. According to the company, the raise will affect some hourly workers within its stores, supply chain facilities, and headquarters.
The big-name retailers revealed that it would adopt minimum wages ranging from USD15 to USD24 an hour, with the higher salaries going to employees in the most competitive markets. Nevertheless, Its current average wage is USD15 an hour.
“The market has changed,” said Target CEO Brian Cornell in an interview. ”We want to continue to have an industry-leading position.”
Additionally, Target disclosed the launch of expanded health care and education benefits for workers. In conclusion, the company’s announcement totals a USD300 Million investment in its staff.
“We continuously listen to our team members to understand what’s most important to them, then use the feedback to make investments that meet their needs across different career and life stages,” said Melissa Kremer, chief human resources officer at Target. “We want all team members to be better off for working at Target, and years of investments in our culture of care, meaningful pay, expanded health care benefits and opportunities for growth have been essential to helping our team members build rewarding careers.”
The action comes as more retailers and restaurants have increased their minimum wage to USD15 an hour. Amid labor shortages within the retail industry, companies are struggling to retain as well as hire more workers.
“Alongside the health risks, uncertainty and stress of working during a pandemic, many service-sector workers continue to contend with chronically unpredictable and unstable work schedules,” according to a recent report from the Shift Project.