Dive Brief:
- Hobby Lobby plans to raise its minimum full-time hourly pay to $19.25 starting on Tuesday, the company said in an announcement last week.
- It’s the 13th time the company has raised its minimum hourly pay since 2009, Hobby Lobby said. The move puts the arts and crafts retailer’s starting hourly pay well above the current federal minimum of $7.25 per hour.
- The company also touted the benefits available to eligible employees. They include a medical, prescription and dental plan; a 401(k) with a company match; vacation, sick and personal pay with annual buyback; paid holidays and an employee discount.
Dive Insight:
Hobby Lobby’s recent pay raise to $19.25 per hour would equate to an annual salary of about just over $40,000 when working a 40-hour workweek, which is nearly 19% higher than the national median of $16.19 or about $36,675 per year in May 2023 for retail workers, according to data from the U.S. Bureau of Labor Statistics.
Hobby Lobby founder and CEO David Green said taking care of employees supports the company’s success.
“For decades, we have closed our stores on Sundays, and at 8 p.m. the rest of the week, to help employees balance their work and personal lives, and have time for rest, family, and worship,” Green said. “We work hard to provide some of the best wages and benefits in retail, which allows us to attract and retain a great team of associates to serve our loyal customers.”
The latest BLS data also found that over 4 million people were employed as retail sales workers in 2023. The job outlook through 2033 was flat. Still, there are typically over 500,000 job openings each year due to high turnover for people who move to different jobs or choose to retire. More recent second quarter data from Payscale found that wage growth for retail and customer service jobs rose 1.2% from Q1, almost 5% year over year and over 39% since 2006.
In May 2023, median hourly pay for retail workers in the furniture, home furnishings, electronics and appliances sectors was highest at $17.21 while workers in clothing, accessories, shoes and jewelry saw the lowest median compensation at $14.48 hourly.
Although inflation has negatively impacted nearly all businesses, individuals and families in recent years, privately held Hobby Lobby has managed to hold down prices and seen continued business success. The company has announced a steady stream of store openings throughout the year.
The pay increase is a way of sharing that success with employees, Green said. Founded in 1972, Oklahoma City-based Hobby Lobby employs about 46,000 employees in 48 states. It operates 1,035 stores that sell arts and crafts, home accent, seasonal and custom framing products.
Hobby Lobby did not immediately respond to questions from Retail Dive about the company’s previous minimum pay threshold or if the company has specific seasonal hiring plans ahead of the holidays.