Costco and Chipotle are 2 companies raising wages during the pandemic. Here are 7 major firms that hiked pay over the past year.
- Some employers say they're struggling to find workers, and the April jobs report was much softer than expected.
- Many are offering one-time perks for new hires, but a few have rolled out wage increases.
- Here are seven major companies that have started paying workers more in the past year.
Companies are gearing up for a spending rebound as the economy emerges from its year-long lockdown, and that's going to require a whole lot of hiring.
But the country added just 266,000 jobs in April, kicking a debate about a "labor shortage" up a notch and suggesting that many unemployed Americans aren't in a rush to return to work under current conditions.
Various businesses have reported difficulties finding workers in recent weeks. Some blame generous unemployment benefits for the shortage, while others suggest jobless Americans are simply looking for safer working conditions before returning to the labor market.
A spike in inflation might also be contributing to the hiring shortfall. Economists expect prices to go up sharply as the country rebounds, which means some companies will start charging more for goods and services. That's already happened in many cases, as the reopening economy is rife with bottlenecks everywhere from chicken to lumber.
In turn, workers are demanding higher wages to offset the rising cost of living. A handful of businesses have seen the writing on the wall and started paying workers more throughout the pandemic.
Here are seven companies who are paying their employees more since this time last year.
Target
In June 2020, Target increased its starting wage to $15 per hour from $13, as part of a multi-year plan announced in 2017.
Target CEO Brian Cornell recently told the Economic Club of Chicago his company's $15 wage, which was met with skepticism when it was announced, helped the retailer get through the pandemic in better shape than it would have otherwise.
Hobby Lobby
In that, Hobby Lobby increased its starting wage to $17 per hour, up from the $15 wage which the company had been paying since 2014, "before it became fashionable with other retailers," the company said.
The arts-and-crafts supplier was one of the first retailers to institute an hourly rate higher than the federal minimum wage back in 2009 and has since increased its wages a total of ten times.
Starbucks
In December, Starbucks gave raises of at least 10% to all employees, and added a 5% bump to starting wages, which vary by local markets.
Rossann Williams, the president of Starbucks' company-owned US stores, said in an internal memo viewed by Business Insider that the move was "one of the most substantial investments in pay in our company's history."
Wayfair
In January, Wayfair boosted its minimum wage to $15 per hour, giving raises to more than 40% of its employees.
"We are fortunate to have an incredible team that puts our customers first each and every day," CEO Niraj Shah said in a statement. "We are proud to offer market-leading compensation and the opportunity for all employees to build careers in a collaborative and supportive workplace that rewards great work."
Costco
In March, Costco increased its minimum wage to $16 per hour, up from $15, and over half of the company's employees earn $25 or more.
CEO W. Craig Jelinek told a Senate budget hearing that the raise is "good business," as it cuts down on turnover, with employees averaging more than nine years at the company.
Walmart
Walmart's minimum wage remains at $11 per hour, but company raised pay in March for more than 425,000 workers to between $13 and $19 per hour, bringing the wage of half of the company's hourly employees up to $15.
"We're trying to ... create this ladder of opportunity, providing an opportunity for people when they start with the company to build a career like so many of us already have," CEO Doug McMillon said on a call with investors.
Chipotle
In May, Chipotle will increase the starting wage to a range of $11 to $18 per hour, which the company says will result in an average of $15 for new hourly workers.
In addition, the company outlined an accelerated path to a general manager career taking as little as three-and-a-half years, earning a six-figure salary.
"We hope to attract even more talent by showcasing the potential income that can be achieved in a few short years," Chipotle's Chief DEI Officer, Marissa Andrada, said in a statement.
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