Sitting on bumper profits and cash as consumers remodel their homes during the pandemic, Home Depot (HD) is joining a growing list of big box retailers giving its workers a raise after a busy and challenging year during the COVID-19 pandemic.
The home improvement retailer said Tuesday it will invest $1 billion in what it calls ‘incremental compensation’ annually for its workers. A Home Depot spokesperson declined to share specifics on how much the company’s average hourly wage will increase after the investment.
“It varies market by market. Our compensation, at all levels, is based on skills, responsibilities, performance and market rates,” the spokesperson told Yahoo Finance. According to Glassdoor, the average hourly wage for a Home Depot cashier is $11 an hour. A sales associate earns $12 an hour, per Glassdoor.
The spokesperson said the “majority” of Home Depot’s 400,000 total employees will receive a pay bump from the new investment.
Other big box chains — sitting on big profits as consumers have stocked up on food and cleaning products amidst the pandemic — have also opened their wallets.
In July, Target raised its starting wage for its store, distribution and headquarter employees to $15 an hour. The move impacted 275,000 employees who work at the company’s stores and distribution centers. Target raised its starting minimum wage to $13 an hour in June as part of a commitment unveiled in 2017 to reach $15 an hour by 2020.