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Macy's (M) Boosts Staff's Morale Via Wage Raise & Benefits

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As Macy's, Inc. (M - Free Report) continues to deepen its focus on growing as a digitally-led omnichannel retailer and executing its Polaris Strategy, it is equally focused on increasing compensation and benefits of its colleagues. In latest developments, the company came up with a host of initiatives for its associates including increment of the minimum wage rate.

Delving Deeper

Macy’s looks forward to making significant investments in its colleagues. This will expand their benefits programs by rolling out a new tuition program. Management raised its company-wide minimum rate to $15 per hour across all its locations. It already phased in the $15/hour rate minimum in various markets and targets achieving the same nationwide by next May. The company increased the $15/hour pay rate for its distribution center staff this summer.

Management cited that post these investments, the average base pay will be more than $17/hour while average total pay will be $20/hour. It will also increase compensation and benefits for its associates.

Macy’s collaborated with a key education and upskilling platform Guild Education to build the debt-free education benefit program. Starting next February, the debt-free education program includes investments of roughly $35 million in the coming four years. All the U.S.-based regular, salaried and hourly associates are eligible for this program.

It provides 100% of tuition, books and fees for several options comprising courses for high school completion, college prep, associate and bachelor’s degrees, boot camps, professional certificates within the company’s debt-free network and more. Thus, the program will help the enrollees gain talent and knowledge to accomplish professional targets.

The company’s corporate and hourly associates will receive an additional flexible paid holiday. We note that Macy’s made investments to benefit its colleagues over the recent years. These include pay adjustments and recognition programs. The company also implemented Path to Growth Incentives, Thank You bonuses and Hero Pay last year. These initiatives were implemented to recognize employees’ efforts and thank them in the unprecedented times.

Macy’s ongoing transformation to be a digitally-led omnichannel player includes important investments in workforce to enhance their talent and skills. Also, these initiatives are likely to attract efficient employees to boost the organization’s overall growth.

What’s More?

Macy’s shares have surged 54.5% in the past three months, outperforming the industry’s 34% rally. This currently Zacks Rank #3 (Hold) company has been gaining from consistent investments toward enhancing digital capabilities. The company’s digital sales are being supported by expanded omni-channel offerings like curbside, store pickup and same-day delivery.

During second-quarter fiscal 2021, it acquired 5 million customers, up 30% from fiscal 2019’s tally. Of the new customers, 41% came through the digital channel. The company’s Polaris Strategy that includes strengthening of customer relationships, expansion of assortments, acceleration of digital growth, optimization of store portfolio and reduction of costs is worth mentioning.

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