Home Depot announced Tuesday that it is investing $1 billion in its hourly workers, bringing their average starting wage to $15 an hour.
Employees will see the increase, which came into effect from February 6 this month, in their paychecks. The increase will boost wages for all hourly workers in the US and Canada.
The news joins the home improvement retail giant among the ranks of other large employers raising their minimum wages amid a nationwide shortage of front-line workers. Walmart announced an average hourly wage of more than $17.50 last month. Amazon said in September that starting wages for warehouse and delivery workers would exceed $19 an hour. And Target invested $300 million in hourly wage increases last year.
These companies are facing a burgeoning labor market with more than 11 million job openings as of December – of which more than 1 million are in retail business roles.
In an email to employees shared with CNBC, Home Depot CEO Ted Decker said the investment “gives us a more favorable position in every market where we operate.” The higher wages will improve the customer experience as the company attracts more high-quality workers and keeps experienced employees, he said.
“This investment will help us attract and retain the best talent in our pipeline,” he said.
Decker said Home Depot has also added more training opportunities, including promotions for more than 65,000 employees in 2022 alone.
The wage increase could help Home Depot spearhead a campaign to unionize its stores, which it opposes. Workers at a Home Depot in Philadelphia filed last September to hold a union election, saying Home Depot’s strong sales were not benefiting workers and downsizing stores. Store workers voted to reject the union in November.
Home Depot employs 437,000 people in the US and 34,000 in Canada. The vast majority are hourly workers, the company said. The company operates 2,000 stores in the US and 182 stores in Canada.
