Taking the lead in setting higher minimum wage standards for its employees, Target Corporation has once again announced plans to raise hourly pay rates, following a similar move over five years ago. In 2017, Target committed to paying its workers a minimum of $15 per hour, prompting other major companies like Amazon and Costco to follow suit. While Amazon matched Target’s $15 per hour rate, Costco raised the bar even higher, offering its employees $17 per hour.
Target is now taking another bold step to increase its minimum wage, potentially making it difficult for competitors to match. This move is expected to attract job seekers to the company, as they stand to earn significantly more at Target than at other retail stores.
The national retailer has announced plans to raise the minimum wage for its retail store and distribution center employees to as much as $24 per hour. This increase aims to make Target jobs more competitive, particularly in states like New York, where the labor market is highly competitive. Target CEO Brian Cornell explained the rationale behind the decision in an interview with The Associated Press, saying, “The market has changed. We want to continue to have an industry-leading position.”
In addition to raising the minimum wage, Target is also working to improve access to healthcare for its hourly workers. The company intends to invest an additional $300 million in its labor force to enhance its appeal as an employer and retain employees for longer periods.
Operating around 1,900 stores across the United States and employing approximately 350,000 people, Target is among the largest retailers in the country. However, it has struggled with high employee turnover, although the pandemic helped reduce that rate somewhat.
Under Cornell’s leadership as CEO since 2014, Target has made significant strides in enhancing the in-store experience for both customers and employees. Cornell closed underperforming stores, upgraded Target’s digital shopping services, and revamped store layouts. Moreover, in 2019, the company invested $250 million to improve employee break rooms and add family-friendly amenities, such as lactation pods and on-site childcare.
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Target’s investments in its workforce are expected to yield positive results, benefiting not only its employees but also the company as a whole. Satisfied employees tend to stay longer and perform better, which could lead to reduced turnover rates and higher customer satisfaction scores in the future.
Target’s commitment to being a top-choice employer is evident in its latest wage increase initiative. This move is likely to make the company even more appealing to job seekers. For those in search of a well-paying retail job with attractive benefits, Target should be at the top of their list.
Source: AWM