Target employees will soon be getting a raise, and could be earning as much as $15 per hour in three years.
Target announced Monday it will begin boosting its minimum wage next month $1 to $11 per hour and is committing to a $15 starting wage by 2020. The company said the $11 hourly wage tops the minimum wage in 48 states and matches the minimum in MA and Washington.
"It's part of our overall commitment to investing in our team and making sure we're attracting and retaining great talent", Target chief executive CEO Brian Cornell told reporters.
Target's latest announcement contrasts with how it responded in recent years to Wal-Mart's wage hikes.More news: Oil Prices Little Changed After OPEC Meeting
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Of course, one of the problems companies must consider when raising their minimum wage is how much the decision will affect their profits.
The number of retail job openings has steadily increased since 2010 and the national unemployment rate is at its lowest point in the last 16 years, making it more hard for retailers to hire sufficient numbers of temporary holiday workers. Minneapolis plans to boost its minimum wage to $15 for large businesses by July 2022.
The controversial House Bill 2, repealed last spring, explicitly forbade local governments from setting their own minimum wages. Rather, retailers will have to contend with tightening labor markets as a primary obstacle going forward. The Wall Street Journal reported in January that Walmart's average salary is $13.69 an hour.
Target responded aggressively to stagnating sales numbers by cutting prices, remodeling stores and prioritizing e-commerce improvements. Bernie Sanders. And, the city of Seattle is gradually increasing its hourly pay to $15, with many cities across the nation proposing similar legislation.