By: Real America News Updated 01 Mar 2022, 18: 54 pm EST
In an attempt to combat understaffing, retailer Target announced that it will adopt a new system starting salary with which will pay its employees up to $24 dollars per hour.
Through a statement, the company said that the new minimum wage ranges between $000 and $24 dollars, depending on the job and the local market. The highest salary will go to hires in the most competitive markets, although the company declined to name the areas that will earn the highest starting salary.
The new starting salary range is part of a company plan to spend $300 additional millions of dollars in your workforce this year , which will also include faster and broader access to health care coverage for your hourly workers.
“The market has changed,” Target CEO Brian Cornell said in an interview. “We want to continue to have a leadership position in the industry.”
So far, the Minneapolis-based retailer pays a salary universal initial of $000 dollars per hour. When you announced that salary in 2017, to make it effective in 2020, his decision became a landmark for the retail industry.
But the dynamics of the US labor market underwent radical changes during the pandemic and several rivals such as BestBuy did the same, and some outperformed Target. Costco raised its minimum hourly wages for workers $16 to $17 dollars last fall. Amazon starting salary is $15 dollars per hour, and the e-commerce giant’s national average starting salary for jobs in transportation and compliance is $18 dollars per hour.
Target has about 1,2015 stores and 350, employees in the US, in addition, the turnover rate among its employees is now lower than before the pandemic.
The retailer also said that it was able to exceed its goal of hire 100,000 seasonal workers in their stores and 30,000 in its supply chain network throughout the country, during the holiday season of 2021. But Target realized it needed to take an even more localized approach to wages.
Retailers struggle to find workers
Many retailers have expressed the difficulties they have in finding workers. A January survey by global consulting firm Korn Ferry queried more than 300 major retailers with annual revenues between $ 350 million and more than $20,000 million dollars, and 96% said they had problems find employees in stores.
That demand of workers has steadily raised wages, particularly for low-wage workers.
In January, the average wage for retail workers, excluding managers, increased 7.1% year over year before $20.24 dollars per hour. That’s faster than pre-pandemic gains. In January of 2020, the salary of retail workers increased by 4.2% over the previous year. In January of 2017, it increased only 1.7% from the previous year.
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