CVS Health raises wages, cuts education requirements amid labor shortage

A driver unloads merchandise in New Rochelle, New York, March 16, 2020.

Angus Mordant | Bloomberg | Getty Pictures

As retailers fiercely compete for staff, CVS Health mentioned Wednesday that it’s slashing training necessities for job candidates and giving staff a increase.

The pharmacy chain mentioned it’ll increase hourly pay for workers as quickly as this month and finally hike its minimal wage to $15 an hour, as of July 2022. It mentioned about 65% of staff already make greater than $15 an hour.

As a part of that new wage construction, the corporate mentioned some roles — comparable to pharmacy technicians and name middle representatives — will get a rise, too, although they have already got increased beginning charges.

CVS Well being Chief Government Karen Lynch mentioned the pay improve will strengthen the corporate’s workforce because it turns pharmacy areas into health-care hubs with a wider vary of companies, from diagnostic assessments to pressing care appointments.

“Attracting and retaining prime expertise throughout our companies is crucial as we proceed to redefine what it means to satisfy individuals’s well being wants,” she mentioned in a information launch.

On Wednesday, the corporate also topped analysts’ expectations for second-quarter earnings and raised its outlook for the year.

Retailers and eating places have struggled to fill job openings, even as more Americans get Covid-19 vaccinations and unemployment payments have ended in many states. The labor scarcity has impressed new recruiting and retention methods, from wage hikes and bonuses to child-care support.

CVS mentioned it not too long ago removed training restrictions that saved some individuals from getting a job at its shops. It eradicated the requirement for a highschool diploma or GED requirement for many entry-level roles, and this yr it plans to finish its GPA requirement when recruiting at universities.

The health-care firm mentioned it’s also attempting to increase the pool of certified candidates in different methods and practice them for various roles throughout the firm. Final week, CVS opened a brand new workforce innovation and expertise middle in Pittsburgh the place it really works with faith-based and neighborhood organizations to search out staff and place them in jobs. It opened one other location in Philadelphia this week.

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