Many people are concerned about a lack of available workers in recent years, especially in light of the consequences of the COVID pandemic. Companies of all sizes across the country are having trouble filling lower-skilled, lower-paying positions, such as those in fast food and retail. The minimum wage is widely seen as a contributing factor.
But because of this, many businesses are speaking out. Certain companies have gone to great lengths to increase pay in order to attract and retain workers and to end labor shortages. Target is the most recent company to announce an increase in its starting salary.
Target’s Starting Wage History
When it comes to increasing starting salaries, Target has always been a frontrunner. In 2017, it raised the wage to $15/hour, which was followed by other big companies like Best Buy. Even Amazon has raised its minimum wage to $15 per hour.
The Latest Raise
In February of this year, Target increased its starting wage to $24 per hour. The CEO of Target, Brian Cornell, recently commented to the Associated Press that there have been shifts in the market, and they aim to maintain their status as a market leader.
Are There Any Extra Advantages?
In addition to the wage increase, Target has also announced new healthcare benefits for its staff. Workers who put in fewer than 25 hours per week will still receive their previous pay and benefits (reduced from 30). Employees can also anticipate a reduced wait time for the start of their coverage plan.
How Many Individuals Will This Affect?
It’s important to note that all 1,900 of Target’s locations and 350,000 of its employees will be affected by these modifications. These alterations are expected to cost the business $300 million.
What Exactly Has Target Said?
Target’s chief human resources officer, Melissa Kremer, issued the following statement: “Our team is at the heart of our strategy and success, and their energy and resilience keep us at the forefront of meeting the changing needs of our guests year after year. 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. 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.”
