Target, which announced it would commit to raising its minimum wage to $15 per hour by the end of 2020, recently announced it would bump up employees pay to $13 per hour, starting in June.
This marks the third raise wage in less than two years. The employee’s pay will increase from $12 to $13. Reuters stated that Target’s minimum wage increase puts pressure on competitors like Walmart to do the same. The Minneapolis-based retailer is the eight largest U.S. retailer in sales with about 300,000 employees at 1,845 stores. According to Reuters, retailers are having a hard time attracting and retaining employees as the unemployment rate is at the lowest level it has been at in almost 50 years.
Target Chief Human Resources Officer Melissa Kremer said just a year and a half into this journey, Target is seeing the wage increases strengthen its team.
“Take this past Holiday, when we set out to hire 120,000 seasonal team members to support our teams during the big shopping rush,” Kremer said. “We were able to start them all at $12 or more—and that helped us reach our seasonal hiring goal ahead of schedule, which gave our teams a lot of extra time to train and prepare for our busiest season of the year. It made a big difference, and our holiday results clearly show what an excellent job they did.”
According to Reuters, other companies have followed suit in raising the minimum wage as the political climate has made this issue a top priority.
“For example, Costco Wholesale Corp raised its minimum wage twice in a year and since March has been paying employees at least $15 an hour,” Reuters wrote.
Recently, Bank of America followed suit and announced it would raise its minimum wage to $20 per hour within the next two years. Employees will see the benefit by May 1 when the company will raise its minimum wage to $17 per hour.
“If you get a job at Bank of America, you’ll make $41,000” a year, Chairman and CEO Brian Moynihan told MSNBC on Tuesday. “With the success our company has … we have to share that success with our teammates.”
The current federal minimum wage is slated at $7.25 an hour and now, there is a bill in Congress that would require the minimum wage to rise to $15 an hour over the next six years, according to CNBC.