T.J. Maxx and its sister stores — Marshalls, Home Goods, and Sierra Trading Post — will be raising its base pay to $9 an hour starting in June, ThinkProgress reports. For those who have been with the company for six months or more will see their pay jump to $10 in 2016.
“This pay initiative is an important part of our strategies to continue attracting and retaining the best talent in order to deliver a great shopping experience for our customers, remain competitive on wages in our U.S. markets, and stay focused on our value mission,” TJX CEO Carol Meyrowitz said.
In other words, TJX — following in Walmart’s footsteps — is raising the minimum wage simply because too many people are quitting.
“Now that the unemployment rate is only slightly high, people are eager to quit crappy jobs. Turnover and churn are bad for business, so major retailers are responding with higher pay to get people to stay on,” Vox said.
According to Bureau of Labor Statistics data, employees are quitting their jobs at a much faster rate than they were a few years ago. In 2010, the quit rate hovered around 1.75, when workers were less optimistic about the job market at a time when the economy was bleak. In 2014, with the economy looking up, the quit rate jumped to 3.0. They’re outta there!
ThinkProgress adds that with the minimum wage increase, companies can breathe a sigh of relief. “Raises at major American companies reduce turnover, attract better job candidates, increase employees’ productivity and performance, and end up enhancing customer service,” according to a recent survey.
Another study found that pay hikes help boost recruitment and retention. It also improves efficiency because they can request employees to undertake more work.
Adding more cents into the pockets of low-wage earners is a potent economic stimulant, Vox said. Companies might be reluctant about increasing labor costs, but in the long-run, it will pump billions of dollars back into the corporations’ hands. “…[L]ower-income Americans tend to spend most of their raises,” ThinkProgress concluded.