Target Will Start Paying Employees At Least $24/Hour

It has been over five years ago since Target Corporation raised its minimum wage for its workers to $15. And after Target made the announcement in 2017 about the salary increase, other big companies, like Costco and Amazon, did the same.

Amazon said it would pay its workers at least $15 per hour, and Costco said it would pay its workers $17 per hour.

And now, Target is trying again to raise the wages of its employees. This time, however, the company plans that the salary increase would be higher to a level that it will be hard for other businesses to compete with.

This way, interested applicants will choose to work with Target because they know that they can make a lot more money there than at other places.

They believe that other companies will surely still want to compete with these salary increase plans. And they were not wrong.

Amazon also announced that it will raise salaries for staff in retail and distribution centers to as much as $24 per hour. This way, they make employment more competitive in places like New York.

Talking to The Associated Press regarding the salary increase, Target CEO Brian Cornell said, “The market has changed. We want to continue to have an industry-leading position.”

Also, some employees at Target will be getting a raise in the minimum wage, while others will be eligible for health insurance subsidies.

Target intends to invest an additional $300 million in its workforce in order to make it a more desirable work environment for its employees and to keep them happily employed for longer periods of time.

In 2019, Target allotted $250 million to revamp its staff break rooms and add more family-friendly amenities such as breastfeeding pods and onsite child care. Additionally, the company will also introduce more family-friendly services.

Employees and the entire company are expected to reap the benefits of Target’s investments in its employees. They are more likely to stay on the job and do well if they are satisfied. This way, Target is expected to lower turnover rates and higher consumer satisfaction ratings in the upcoming years.

In recent years, Target has put a high priority on the customer’s in-store experience. Target’s digital capabilities were upgraded, store layouts were adjusted, and failing sites were closed after Cornell became CEO in 2014. All these changes seemed to be good for the company.

The move to raise salaries is another step in the right path for the corporation as it continues to work toward becoming an employer of choice. They will unquestionably appear more desirable to potential employees as a result of this change.

Target Corporation is a big company in the United States. To date, it has employed about 350,000 individuals and has about 1,900 stores all over the country. This might seem like a huge success for the company but they also have been having problems with their high turnover rate.

They are just glad that this time, it is lower than it was before the pandemic.

Target is without a doubt the place where you should start your job hunt if you are interested in obtaining retail work that pays well and has outstanding benefits.

What are your thoughts on Target’s decision to increase its minimum wage for its employees? Do you feel other businesses will be able to compete with the $24/hour increase?


Similar articles