Walgreens Raising Employee Minimum Wage to $15 an Hour
Hourly employees at Walgreens will see an increase in the minimum wage to $15 by Nov. 1, 2022, the company said in a press release Tuesday. The changes apply to all hourly employees across the company's 9,000 U.S. locations and will begin in October, Walgreens said.
"“Investing in and rewarding our team members is not only the right thing to do, it’s highly important to retaining and attracting a talented workforce, and to continuing to serve our critical role in community healthcare," CEO Roz Brewer said.
Walgreens is expected to invest $450 million over the next three years to support the pay raise.
Total Retail's Take: The move by Walgreens was likely made in part to keep up with its biggest competitor, CVS Health, which last month announced wage increases to $15 an hour. Walgreen's decision brings the retailer up to what's quickly becoming a standard wage level in retail — Amazon.com, Costco, and Target also offer a $15 hourly minimum wage.
Such wage increases also increasingly appear to be one of the solutions employers are putting into place to combat the widespread labor shortage impacting retailers large and small across the U.S. With the federal hourly wage remaining at $7.25, companies are taking matters into their own hands to attract candidates and fill jobs, as well as keep them in those positions.