Target to invest $300 million to boost wages and benefits this year

Target to invest $300 million to boost wages and benefits this year

Bloomberg: Target Corp. plans to spend an extra $300 million on wages and benefits this year as the competition for labor heats up.

While the lowest starting wage of $15 an hour won’t change, pay for new employees will range as high as $24 an hour depending on the job and the local market, Target said in a statement Monday. In addition, the retailer is expanding eligibility for health-care plans and speeding access to benefits.

Retailers have been ramping up wages as they struggle to fill positions at stores and warehouses in a tight US labor market. Costco Wholesale Corp raised its starting hourly wage to $17 last year. Walmart Inc also boosted pay for new workers, although its starting wage of $12 an hour trails that of rivals by an increasingly wide margin.