In raising its minimum wage to $11, Target aims to retain workers
In raising its minimum wage to $11, Target aims to retain workers
Minneapolis-based Target is raising its minimum wage by a buck, to $11 an hour starting in October. That will apply to the seasonal workers the company is trying to hire right now to staff stores and online fulfillment centers for the holidays. By the end of 2020, the company said its minimum wage will reach $15 an hour, the same wage that labor and anti-poverty advocates are calling for across the retail, fast food and service industries in America. So, what’s are the bottom line issues that may be behind Target’s decision to boost wages? Retention and recruitment, the company said. And that’s an economic necessity for retailers now, with very low unemployment pitting retailers against each other for talent. Workers who stay at a job longer help the company save on paying overtime and dealing with schedule hassles when somebody quits. And veteran employees know a company’s products, the store layout, and how to greet and deal with customers. That kind of employee can give retailers an edge in a highly competitive marketplace.
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