This morning's announcement that big-box retailer Target will raise its pay floor to $15 an hour by 2020 is the latest example of why a wage mandate of this magnitude is unnecessary.
Explaining the decision on a press call with reporters, company CEO Brian Cornell suggested that a higher wage--starting at $11 an hour this fall--was necessary in the near-term to attract higher-skilled holiday help.
Chief Executive Brian Cornell told reporters on a call that Monday's decision would leave Target better prepared for the upcoming holidays, helping the retailer to attract new employees and retain existing workers in an increasingly complex retail environment.
Target is following in the footsteps of other large retailers and restaurants that have voluntarily raised their pay floor in recent years. It's not just corporations taking these steps; the tight labor market has caused independent operators to raise wages as well. I've seen this first hand: On a recent trip to northern Michigan, one local fast-food restaurant advertised for new hires at a starting wage above $11 an hour--more than $2 above the state's minimum wage.
