Do you work in the retail sector? More specifically, do you work at Target? If so, you might find today’s news interesting! On Monday, September 25, Target Corporation (NYSE:$TGT) announced that it will be giving thousands of its employees a pay raise in October. Why? It seems the Minnesota-based retailer is hoping to stay ahead of Wal-Mart Stores Inc. (NYSE:$WMT) and other competitors in the war for talent. Target disclosed plans Monday to increase its minimum wage to $11 an hour next month. Further, by the end of 2020, Target plans to boost the rate to $15.
Here’s What We Know About The Pay Raise:
Target’s increase will apply to the 100,000 seasonal employees it plans to hire for the upcoming holiday season. However, the retailer has refused to comment on how many of its 323,000 regular employees will see an increase on their pay stubs. Additionally, Target wouldn’t disclose how much the plan will cost, stating that more details will be made known at next spring’s investor conference.
Mentioned briefly, Target’s move is the latest in a wage war that Wal-Mart started two years ago by increasing its minimum wage to $10 in two steps, which affected roughly 1 million workers. Essentially, competition for staff members has soared as the job market improves.
The retailer’s new wage – $11 an hour – puts it higher than the minimum wage in 48 states. According to Target, hourly employees who work in certain departments, like cosmetics or electronics, tend to be paid more than that. Roughly 90% of Target’s employees work in its 1,800 stores, or roughly 160 jobs per store on average.
Featured Image: twitter
