What: Macy’s Inc. is raising its minimum wage to USD 15 across the organization and providing new educational benefits, costing the retailer approximately USD 35 million over the next four years.

Why it is important: The investments reflect efforts to attract and retain talents that are critical to the retailer’s continued growth. This will also be the topic of the IADS 2022 first Operation Meeting dedicated to HR and to be held on 2 December 2021.

Beginning February 2022, the USD 35 million four-year investment will provide a debt-free education benefit program to its colleagues. The program will be available for all U.S.-based, regular, salaried and hourly colleagues and cover 100% of tuition, books and fees. Macy’s partnered with an education and upskilling platform, Guild Education, to build the program.

The company has already phased in the USD 15 rate across several markets and expects to achieve this target nationally by May 2022. Last summer, Macy’s upped the minimum wage to USD 15 per hour for all distribution centre colleagues. The company said that the average base pay will eventually be above USD 17 hour and average total pay will be USD 20 hour. Minimum wages vary from state to state, and in certain cases, workers are entitled to commissions and overtime pay.

Other benefits were announced, including providing Macy’s corporate and hourly colleagues with one additional flexible paid holiday to support their well-being and provide further flexibility to take a day off on a holiday that is most important to them.

Macy’s Boosts Minimum Wage and Benefits to Workers