Target to increase minimum hourly wage to $11 in Oct.
Retailer says it will rise to $15 by end of 2020
Just in time for holiday hiring, Target is giving its lowest-paid employees a raise.
They will be paid at least $11 an hour, starting next month, up from the current $10, and will see it rise to $15 by the end of 2020.
The Minneapolis-based chain said Monday the wage increase plan would help attract and retain good staffers.
“We care about and value the more than 323,000 individuals who come together every day with an absolute commitment to serving our guest,” CEO Brian Cornell said. “Target has always offered market competitive wages to our team members.”
The increase will apply to Target’s 100,000-plus workers hired just for the holiday season.
According to Target, the $11per-hour rate is higher than the minimum wage in 48 states and the same as the minimum wages in place in Massachusetts and Washington. The chain’s last ma- jor wage increase was in 2016 when it was raised to $10 an hour.
According to job search site Glassdoor, Walmart cashiers start at $9.17; Costco cashier assistants at $12.56; and Amazon fulfillment center workers at $12.42.
“On average, we pay 30% more than traditional retail jobs,” Amazon spokeswoman Ashley Robinson said. Amazon wages depend on the market, building format, shift and employee background, she said.
At Walmart, hourly workers may jump to $10 an hour as soon as 90 days upon successful completion of a training program, spokesman Kory Lundberg said. “Our approach has also been to evaluate store pay rates annually to ensure we are being competitive in each market,” he said.
Costco could not be reached for comment.
“How much you pay is the No. 1 reason why someone chooses one job over another,” said Brian Kropp, the human resources practice leader at the Stamford, Conn.-based research consultancy Gartner. “The hourly workforce will change jobs for a 25-cent difference.”
Target stock closed Monday at $58.55, down 43 cents, or 0.73%.