Target has announced it is increasing its starting wage for workers in some positions to up to $24.
The Minneapolis-based company stated that the raise will be applied to hourly employees at its discount stores, supply chain facilities, and headquarters.
Target set a $15 minimum wage in 2020, which will be maintained, although it now says some workers will be eligible for greater beginning pay based on the nature of their employment and the prevailing competitive salaries in their local market.
READ MORE: HOW TARGET BECAME ONE OF AMERICA’S BIGGEST RETAILERS
Target, which employs over 350,000 people and operates over 1,900 stores in the United States, said the salary increase is part of a $300 million investment in its workforce.
The company’s move comes amid an ongoing worker shortage in the retail industry, partly triggered by the pandemic, as companies across the board struggle to retain and hire more workers.
That investment also comprises expanding access to healthcare benefits for hourly workers, beginning in April.
Target hourly employees who work a minimum of 25 hours per week will be eligible to enroll in the company medical plan under the plan that’s down from the previous requirement of 30 hours per week.
The retailer is also shortening the waiting period for eligible hourly team members to enroll in a Target medical plan.
Employees will also be able to obtain comprehensive health care benefits three to nine months sooner, depending on their employment.
The changes come as more retailers and restaurant chains have moved to a $15 an hour minimum rate.
Amazon raised its starting wage to $15 in 2018, while Best Buy bumped up its minimum to $15 in 2020.
Walmart, the largest retailer in the United States, said in September that workers in the store’s front-of-house, food, and general goods departments will be paid at least a dollar more per hour, up to $12.
The pay increase would apply to 565,000 Walmart employees.
Target’s move comes amid an ongoing worker shortage in the retail industry, partly triggered by the pandemic, as companies across the board struggle to retain and hire more workers.
“Alongside the health risks, uncertainty and stress of working during a pandemic, many service-sector workers continue to contend with chronically unpredictable and unstable work schedules”, a recent report from the Shift Project, a joint venture by Harvard University and the University of California, San Francisco, said.
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