Who's Doing it Well? Target's New Minimum Wage
One of the most frequent questions we receive — and try and answer at Holistic — is “Who is doing it well?” It’s always been really informative to hear the good ideas others have. After all, as we say, there’s no IP in inclusion. This feature will highlight creative ideas from other companies. Check out the whole list here or submit your own suggestion below.
The fight for a livable minimum wage is a pressing issue that workers have been fighting for for ages. While we try to rebuild the economy as COVID continues to be a critical concern in America, one company is stepping up to aid its workers with a long-term solution.
TL/DR: Target’s minimum wage raise to $15/hour benefits employees and the company itself as they continue to keep their stores safe and successful during COVID and beyond.
Target hits the bullseye with their new initiative to raise the minimum wage of their employees.
Who: Target
What’s the Big Idea💡: Target has raised their minimum wage to $15/hour for all stores, exceeding the federal minimum wage by 207%. They also will be paying their employees a $200 bonus for their work during COVID, as well as extending benefits that they began offering in March, such as child care. mental health leave, and paid leave for immunocompromised or high-risk employees.
Why It Works: In September of 2017, Target vouched to raise their minimum wage to $15 by September of 2020. But with a growth in sales of 59 cents per share (as opposed to the expected 40 cents that data analysts proposed), Target was ready to implement this change in March, and it will become permanent in July. The growth of their online sales in the past few months have also contributed. Despite the company spending an extra $1 billion on employee-related expenses this year, their growth justifies this expenditure.
(Not So) Hidden Value: Target had temporarily raised their minimum wage to $15 in March, right when COVID began to change the way shopping functioned in the US. But they announced that this wage change would actually be permanent to match their 3-year goal. The generous $200 bonus is also in response to COVID’s impact on the hard work employees have had to put in. Social distancing measures in stores will be in place for a long time--especially with a surge in cases going relatively unchecked--and Target’s constant praise of its workers will remain relevant throughout this time and into the future.
Check out more information about Target’s wage raise here and here.
Written by Hayley Mirabile