These retail chains increased their minimum wage amid the worker shortage

Binghui Huang, Indianapolis Star
·2 min read

Retail chains and boutique stores alike have been scrambling to hire amid a pandemic that's driven many low-wage workers to change careers, retire early or stay at home.

While low pay was one of the reasons that people didn't want to work retail, service, or warehousing jobs, there's a long list of reasons why people aren't returning to the jobs they had before the pandemic.

Revisit: $15 is becoming the new starting hourly wage in Indiana

Workers are reluctant to take jobs that have a significant risk of exposing them to COVID-19, especially if they have chronic health issues or live with someone who does. The pandemic, along with the quarantine and unemployment benefits, allowed many to rethink their lives and priorities.

Some companies are implementing modest wage increases and offering bonuses to attract workers. Here's a list of chains that raised their starting pay to attract and retain workers:

Costco Wholesale's Indianapolis stores have stopped handing out food samples in response to a widening outbreak of coronavirus. This is the entrance to the store at 9010 Michigan Road.
Costco Wholesale's Indianapolis stores have stopped handing out food samples in response to a widening outbreak of coronavirus. This is the entrance to the store at 9010 Michigan Road.

Costco

Retailer Costco raised starting wages to $17 an hour this fall. The chain prides itself for having one on the lowest turnover rates, as well as one of the highest-paid workforce.

Starbucks

Coffee chain Starbucks announced in October that it would pay workers at least $15 an hour and an average of $17 an hour in the summer. Depending on the cost of living of different cities and towns, as well as experience levels, the rates will range from $15 to $23 an hour.

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CVS

CVS announced this summer that it would raise its starting wage to $15 an hour by next year. The company said that about 65% of its employees already make more than $15 an hour.

A file photo of a Target shopper stopping in front of an in-store Starbucks kiosk.
A file photo of a Target shopper stopping in front of an in-store Starbucks kiosk.

Target

Target raised its starting wage to $15 in 2020 after announcing that plan in 2017.

Best Buy

Like Target, the electronics retailer chain Best Buy boosted its starting pay the $15 in 2020.

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Amazon

Amazon, one of the largest employers in the country, raised wages to $18 an hour this fall as it continues to expand its workforce amid growing demands for retail deliveries.

Walmart

Walmart, a retail chain that employs nearly 1.6 million people in the United States, increased its starting pay to $12 an hour this fall.

Contact IndyStar reporter Binghui Huang at 317-385-1595 or Bhuang@gannett.com. Follow her on Twitter @Binghuihuang

This article originally appeared on Indianapolis Star: Jobs increasing minimum wage to find workers