Macy’s Inc. will raise the minimum wage of its more than 100,000 U.S. employees to $15 per hour by May, the department store chain said on Monday, as retailers fight to hire and retain workers in an increasingly competitive labor market.
“[t]he department store chain said…it will raise its minimum wage, for new and current workers, to $15 per hour by next May. Once the higher pay is in effect, Macy’s average base pay will be above $17 per hour, and average total pay will be $20 an hour,” CNBC reported.
Additionally, Macy’s has partnered with Guild Education on an education benefits program to help employees cover the full cost of tuition, fees, and books, spending $35 million over the subsequent four years.
Macy’s will also provide one more paid holiday to employees. Combined, these incentives demonstrate the corporation’s “ongoing commitment to attract and retain talent critical to its continued growth.”
Chief transportation and human resources officer at Macy’s, Danielle Kirgan, said, “[t]his program removes a major barrier to accessing education and will help our colleagues to further develop their skills and grow their careers and earning potential.”
With this move, Macy’s joins the likes of other retailers including IKEA, Target, Amazon, Costco, and Walmart to name a few, who have also recently hiked workers’ minimum wages.
These initiatives are emerging in the wake of a so-called labor shortage that has hit the nation as a result of the COVID-19 pandemic, as many companies are “worried they will not have enough workers in stores and warehouses during the holiday shopping season.”
If one good thing came from the pandemic, these businesses realized they need to be more competitive with their wages.