In June, Target’s minimum hourly wage for all new and current employees is increasing to $13. This pay rise is a part of the company’s goal to reach $15 an hour in 2020. In 2017, Target announced its three-year plan to increase the minimum hourly wage from $10 to $15, and this pay is substantively higher than federal minimum wages. According to Melissa Kremer, Target’s Chief Human Resources Officer, the company will continue “to invest in learning and development resources for existing team members to help them grow their careers.” She admitted that Target was successful in hiring more than 120,000 seasonal employees due to the company’s wage investment that made it preferable for people. Kremer mentioned “a great response from team members” as well. This case addresses the relationships between the company and its stakeholders (employees) that were improved due to Target’s financial policy.
Target’s wage investment may be regarded as an example of responsible human resource management. Businesses are responsible not only for creating jobs but for the encouragement of talent and hard work as well. One of the ways in which a company may demonstrate its respect and care about workers is wage increase. Managers’ key function is to attract experienced and qualified employees and make them stay; that is why the value of motivation should not be underestimated. When employees feel that their work is appreciated and a company encourages the development of their careers, they express their commitment to this organization.
Companies do not compete only for customers but for employees as well. As a respectable wage is one of the factors that make a company desirable for potential workers, organizations with effective human resource management consider the subsequent increases in wages. Moreover, the impact of well-paid and flexible working hours positively affects the work-life balance of workers and reduces stress. In the case of Target, its wage increases and the investment in the employees’ learning resulted in great interest in the company and made it “an employer of choice.” Additional benefits from retailers help to attract candidates and retain qualified and devoted workers as well.
From a personal perspective, the activities of Target are highly respectable and demonstrate the company’s deep understanding of the current market. Its series of minimum wage increases and care about the employees’ careers and job satisfaction positively affect the company’s performance, goals’ achievements, and competitiveness. Satisfied workers lead to happy customers and successful business, while unhappy employees leave. The loss of experienced workers inevitably results in the financial losses of a company as the recruiting and training of new staff is cost-intensive.