PENNSYLVANIA, USA — Some starting workers at Target will soon be making as much as $24 an hour.
“This is the first time in a long time that we’re seeing labor markets get so tight that companies are competing for workers and not the other way around,” said Yeva Nersisyan, associate professor of economics at Franklin & Marshall College.
Nersisyan says it’s another show of just how competitive the job market has become.
“[Companies] are offering signing bonuses, they’ve been resisting offering higher wages but I guess now some companies are starting to offer those higher wages,” she explained.
Annie Hughes, a certified career coach based in Harrisburg, says job seekers are demanding more from prospective employers.
“If there is an offer on the table, negotiating a little bit of a higher salary, negotiating remote work for example or better benefits. Definitely seeing more success there,” said Hughes, who is the founder of Hughes Coaching & Consulting LLC.
Right now, Target’s starting wage is $15 an hour.
However, as retailers continue to struggle to hire workers, the company is bumping that hourly amount up to as high as $24 in the most competitive markets.
It’s part of a new $300 million investment in the Target workforce.
While the retail giant says the move is not affecting its profits, smaller companies may not have the bottom line to compete.
“They have smaller budgets for salaries but they’ll often times flex benefits and they’ll work on creating a better work experience which improves worker happiness,” said Hughes.
She says that’s a big deal, as many of her clients are just as concerned with work-life balance as their paycheck.
“I’m definitely encouraging them to reach for the stars, go for the jobs they want, because now is the opportunity,” added Hughes.