Target raises its minimum wage to $ 13 an hour, targeting $ 15 by 2020
Target said Thursday, it increases its minimum hourly wage by one dollar to $ 13 in June for all current and new employees as part of the goal of hitting $ 15 an hour by the end of 2020.
It is the last step in a number of annual increases it has made since it announced in September 2017 a plan to increase its minimum start time wage from $ 10 to $ 15 over three years. 19659003] Target's new $ 13-hour minimum is well above the federal minimum of $ 7.25, which was last increased in 2009, and all of the 50 states' minimum wages (some cities, including Washington, New York and San Francisco, have higher wages .]
Target rates are higher than competitor Walmarts $ 1[ads1]1 per hour minimum, set in January 2018, but are still below Amazon, which increased their hourly rate to $ 15 an hour in November.
"We continue to invest in to learn and develop resources for our existing team members to help them feel better see his career, "Chief Human Resource Officer Melissa Kremer said in a post on Target's Bullseye View blog.
While Targ's starting salary was $ 3 an hour under the Amazon this past holiday, CEO Brian Cornell credited the company's salary and career opportunities as part of the reason it hit its seasonal vacation hiring targets ahead of schedule.
"We hired over 120,000 seasonal team members in the fourth quarter, and I know there were some questions about, we can do that, and we did," Cornell said in an interview with CNBC last month. "I think the investment we made in wages made us an employer of choice, so we see a good response to our offer, we get a good response from team members. They recognize that we are investing in their future."
US unemployment continues to fluctuate at historically low levels, most recently at only 3.8 percent in February, making competitive pay even more critical for recruiting and retaining workers. Retailers and logistics companies, including Target, Walmart, Macy, UPS and FedEx, also expand career development and training programs, as well as other benefits such as parental leave, to attract candidates and lower sales. During the last vacation, resellers have become even more creative, offering gifts such as $ 5,000 vacations, charity donations, and gift certificates.
