The retailer is locked in in a wage war with Wal-Mart.
Beginning in October, minimum hourly wage to $11—and we plan to increase the minimum hourly wage for all team members over the next few years to reach $15 by the end of 2020.
The increase will apply to the 100,000 seasonal employees it’s hiring for the holidays, but the company declined to say how many of its 323,000 regular employees would see a lift.
“Target has a long history of investing in our team members. We care about and value the more than 323,000 individuals who come together every day with an absolute commitment to serving our guest,” said Brian Cornell, CEO and chairman, in a prepared statement. “We’ve always offered market-competitive wages to our team members. 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.”
WAGE WARS
The workforce strategy is considered important to combat Wal-Mart’s wage initiative the retailer launched two years ago by raising its minimum wage to $10 in two steps, affecting more than 1 million workers. The retail industry is the largest private-sector employer in the U.S., and competition for staff has heated up as the job market improves. Chains such as Costco Wholesale Corp. also have boosted wages.
Target touts that the pay hike is just one of the benefits the company offers to employees to help them grow in their careers, along with training and development opportunities, a variety of schedules to fit their diverse needs, merchandise discounts and life resources.
Hourly employees who work in some departments, such as electronics or health and beauty, are typically paid more than that, the company said.
