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Target Sets A Benchmark By Raising Minimum Wage

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Target Sets A Benchmark By Raising Minimum Wage

Target Corporation is a well known organisation in the United States of America (USA) as one of leading retail chains in the Country.  Target is always at the forefront of retail innovation and competes with its rival, Walmart to gain an upper hand.  However, in a recent operational move Target has one upped its competitors when it announced it would raise its minimum wage from $ 13 an hour to $ 15 an hour  permanently beginning from July.  The increase to 15 dollars an hour is significant as it impacts 275,000 employees that work in their stores and distribution centers.  Target has nearly 1,900 stores and 41 distribution centers.

The significance of its move is very high as it comes at a time when the world is battling its worst pandemic in years which has led to businesses shutting down, offices and governments declaring emergencies and lockdown.  The decision to increase the minimum wage comes at a time when the world is celebrating retail store workers for their essential services and this move will only strengthen the employee loyalty while increasing the brand value of Target.

However, the decision to implement the minimum wage of 15 dollars per hour was announced in 2017 as a goal by Target Corporation.  The employees of Target already received a temporary wage pay when the COVID-19 pandemic arrived and now the minimum wage pay is made permanent.  The retail corporation will also offer a one time bonus of $ 200 to hourly employees at the end of July “for their efforts throughout the Coronavirus pandemic.”

ALSO READ: Walmart Family Makes $ 4 Million Every Hour And $ 100 Million Every Day

The new minimum wage by Target is also important considering that the Federal average minimum wage in the USA is $ 7.25 per hour.  The hourly wages at Walmart is at $ 11 per hour and although Walmart has been paying hourly bonuses to employees during the pandemic, it has ceased to do so in the recent weeks.  

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