Target has just announced that in June all of their minimum wage employees will receive a base pay of $13/hr. Target is positioning itself as one of the first companies to implement a new minimum wage as the debate surrounding the issue has been ongoing for years. In most states, the minimum wage rate is $7.25/hr which amounts to about $300/week. Most people have monthly and weekly expenses exceeding that amount which can make dealing with life on minimum wage very tough.
What It Means For Workers
With Target’s recent announcement, employees of the company have shown their excitement and gratitude for the bold move. This is a huge step forward in terms of workers’ rights and salaries as it signals to other corporations to get onboard. Workers who may have struggled to pay their bills or provide necessities for their family can now enjoy an over 50% pay increase directly in their pockets.
Last year around the holidays, Target hired 120,000 seasonal employees which many people didn’t think the company would be able to do. Target is clearly trying to spearhead the movement for higher minimum wages and benefits for workers and so far their tactics have worked.
How It Will Affect The Company
Targeting has been trying to re-brand their stores as inclusive, affordable, and trustworthy. It was also one of the first companies to implement transgender bathroom policies back in 2016. With the recent news of Target increasing its base minimum pay for all new and existing employees, the company can expect to see a surge in job applications.
Since most companies still use the federally instated $7.25/hr. pay rate for minimum wage, Target is setting itself apart from its competitors. Customers tend to patronize businesses that reflect their individual morals and principles, Target knows this and is likely going to experience a boost in sales from supports of the worker’s rights movement.
The strategy behind the new pay rate
This announcement is a very strategic move by Target to elevate its overall brand image. By raising the minimum wage that all of its employees receive, Target continues its reign as an innovator and leader. Target is also making a very bold statement that they care about the lives of their employees more than their profits which can’t be said for a lot of companies. With this move, the company is positioning as a principled-based company that is for the people instead of a money hungry corporation willing to sacrifice the well-being of its employees in order to be successful.
Target definitely knows what they’re doing with this latest announcement and you can expect the overall culture of the company to change drastically in upcoming months as a result.