Home Depot, the world’s largest home improvement retailer, is investing significantly in all U.S. and Canadian hourly employees in 2023.
The company announced last week that it would raise all hourly employees to at least $15 an hour, more than double the federal minimum wage of $7.25. All associates saw the new rates reflected in their paychecks on February 24.
With nearly 500,000 workers in over 2,000 stores, Home Depot’s decision will cost the company approximately $1 billion. About 92% of Home Depot workers are hourly.
“The most important investment we can make is in our people, which is why we are announcing that we are increasing annualized compensation by approximately $1 billion for our front-line hourly associates,” CEO Edward Decker said on last week’s earnings call.
“We believe this investment will position us favorably in the market, allowing us not only to attract the most qualified talent but also retain the exceptional associate base that is already in place.”