This past Tuesday, Home Depot announced that it was going to spend $1 billion to increase hourly employees’ wages. Currently, the minimum starting wage totals $15 an hour.
President and CEO at Home Depot Ted Decker addressed all U.S. employees, stating that the wage hike took effect on February 6, and some employees have already seen this reflected on their paychecks on February 17. Other hourly associates can expect to receive a larger salary starting February 24.
“Since 90 percent of our store leadership started as hourly associates, today's new hires are our future leaders,” Decker wrote. "This investment will help us attract and retain the best talent in our portfolio," he added.
On the same day, Home Depot reported its Q4 and fiscal 2022 results, showing an unexpected drop in comparable sales for the quarter and forecasted annual returns below Wall Street expectations. The company warned of a reduction in consumer demand for home goods as inflation is eating up the budget of Americans.
Home Depot has followed the example of its fellow retail giant Walmart as both companies are currently trying their best to hire and retain workers amid a tight job market.
In January, Walmart announced its plan to raise the average hourly wage to more than $17.50 for its employees in U.S. stores.
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