Retail outlet chain brand, Target has announced that it will increase its minimum wage per hour for its employees to $13 from June for all its current and future employees. Target also said in a statement that it has a plan to increase the minimum hourly wage to $20 by the end of 2020. This move by the company is a part of series of yearly increase that it has already made since the announcement of its plan in September 2017 that is it will be increasing minimum hourly wage to $15 per hour from $10 per hour.
The company’s new wage limit is well above the federal minimum hourly wage of $7.25, which was last increased in 2009. With this move, the company’s rate is now higher than its rival Walmart which has a rate of 11$ per hour, according to a blog by Melissa Kremer, who is a Human Resource Chief on Target’s Bullseye blog. CEO, Brian Cornell said in a statement that the company’s decision to increase the wages will also support the seasonal hiring goal set up by the company.
Cornell in an interview said that the company hired more than 120,000 employees in the fourth quarter. He further added that the employees are giving a very good response to the move by the company and that the employees believe that the company is investing in their future and this will benefit the work culture of the company.
According to the latest data, the unemployment rate is at the highest in the United States, which makes the wage factor critical in hiring quality employees and maintaining them to stay in the organization. Other companies are also providing training programs and career development for employees to attract quality employees and to lower the turnover rate. According to the latest data in February, the unemployment rate was 3.8%.