It has been more than five years since Target Corporation attempted to raise the minimum wage for its employees to $15 per hour. Other major organizations, such as Costco and Amazon, have followed suit after Target made the announcement in 2017. Amazon promised to pay its employees at least $15 per hour, while Costco went a step further by promising $17 per hour for their effort at the company.
Target is once again attempting to increase the wage for its workers. This time, though, the company intends to raise pay so significantly that other firms will have a hard time competing with the national chain. People will flock to Target in search of retail employment since they’ll be able to make far more money than at other businesses.
In response, Amazon said it will raise salaries for staff in retail and distribution centers to as much as $24 per hour to make employment more competitive in places like New York, where competition for employees is as intense as it has been in years.
“The market has changed,” Target CEO Brian Cornell told The Associated Press in an interview. “We want to continue to have an industry-leading position.”
In addition to raising the minimum wage for some employees, Target will be attempting to make it simpler for its hourly employees to obtain health insurance. To make Target a more appealing place to work and retain talent in jobs longer, the firm plans to invest another $300 million in its workforce.
Target Corp. is a leading American company that employs roughly 350,000 individuals and owns around 1,900 retail outlets across the United States. Despite this, the store experiences significant staff turnover – albeit it has decreased as a result of the epidemic.
Target’s in-store experience has been a major priority for the company in recent years. After Cornell became CEO in 2014, he closed underperforming locations, improved Target’s digital shopping capabilities, and made adjustments to store layouts.
Target has invested in recent years to enhance the shopping experience for both clients and employees. In 2019, Target allocated $250 million to renovate its employee break rooms and add more family-friendly amenities such as lactation pods and onsite child care.
Target is making considerable investments in its workforce, and these initiatives are likely to pay off for both workers and the company as a whole. People who are happy at their jobs are more likely to stay on board and perform well. That indicates that Target can expect lower turnover rates and higher consumer happiness ratings in the future years.
Target’s decision to increase wages is another step in the right direction for the company as an employer of choice. It will undoubtedly make them more appealing to job seekers. If you’re seeking for a retail position that pays well and offers excellent benefits, Target is without a doubt where you should begin your hunt.
What are your thoughts on Target’s decision to increase its minimum wage? Do you feel other businesses will follow suit?