"Target Store" by Mike Mozart via Flickr
Today, Target announced that it plans to raise its minimum hourly wage to $11 this month. Additionally, the mega retailer pledges to increase this minimum wage to $15 by the close of 2020. Target has been steadily increasing their minimum wage annually, with the last increase happening in April 2016 from $9 hourly to $10 hourly. Target team members are an integral part of the success of Target stores in regards to customer service and shopping experience, so investing in this minimum wage increase will allow the company to recruit and keep the best employees available. Target CEO and chairman Brian Cornell stated that "[with] this latest commitment, we’ll be providing even more meaningful pay, as well as the tools, training and support our team needs to build their skills, develop professionally and offer the service and expertise that set Target apart.”
The new $11 minimum hourly wage not only affects new employees but current employees as well. It means thousands of team members across the nation and over 100,000 seasonal employees that will be hired in the coming weeks will receive a pay bump. Even though Target already pays competitive rates that are above the federal minimum wage of $7.25 nationwide, the new minimum hourly wage of $11 is higher than that in 48 states and now matches those in Massachusetts and Washington. Comparatively, Walmart announced a minimum wage increase to $10 an hour by 2016, so Target is now the head of the pack.
Target has long been on the list of notable companies to work for, including Fortune's World's Most Admired Companies, DiversityInc's Top Companies for Diversity, and Top 50 Companies for Executive Women. Some of these lists factor in career planning and development opportunities, scheduling flexibility, and employee benefits, and Target excels in each area. We respect Target for this increase in its minimum hourly wage, and we want to hear your thoughts in the comments below!