Target is set to pay new employees $24 an hour to compete with other companies.
As inflation continues, companies are doing all they can to make sure they keep their businesses staffed. Right now, the current average minimum wage in the country is between $12 to $15 an hour. But Target’s CEO Brian Cornell says he’s taking it a step further and offering new workers up to $24 an hour.
“The market has changed,” Cornell told the Associated Press in an interview. “We want to continue to have an industry-leading position.”
A recent survey done by global consulting firm Korn Ferry found that an average of 96 percent of major retailers were facing issues finding store employees. Eighty-eight percent of companies were struggling to find distribution-center workers, Business Hala reports.
To change the narrative for its company, Target plans on putting forth an extra $300 million toward its workforce in 2022, according to a press release from the company. Workers will have the ability to earn up to $24 an hour. “The exact starting wage within the range will depend on the job and the local market, with market-level wages set by the retailer based on industry benchmarking, local wage data and more,” the release said.
In addition, about 20 percent of the company’s workforce will be eligible for health care benefits.
