CVS Health Announces Wage Increases

Rhea-AI Summary

CVS Health (NYSE: CVS) will raise its minimum enterprise hourly wage to $15 starting July 2022, marking a over 60% increase since 2018. The change affects approximately 35% of hourly employees, as 65% already earn more than $15. This initiative aims to enhance employee retention and attract talent, aligning with CVS’s commitment to workforce development. Additional increases for certain roles will be implemented, and hiring barriers such as high school diploma requirements are being removed to improve job accessibility.

Positive

• Minimum wage increase to $15 an hour will positively impact employee retention and morale.
• Approximately 65% of hourly staff already earn more than $15, indicating a competitive pay structure.
• The company is removing barriers to employment by eliminating educational requirements for many entry-level roles.

Negative

• None.

WOONSOCKET, R.I., Aug. 4, 2021 /PRNewswire/ -- CVS Health (NYSE: CVS) is making a significant investment in its employees by raising the minimum enterprise hourly wage to $15 an hour effective July 2022, with incremental increases to the company's competitive hourly rates starting this month. Approximately 65 percent of employees earning hourly wages already make more than $15 an hour.

"Attracting and retaining top talent across our businesses is critical as we continue to redefine what it means to meet people's health needs," said CVS Health President and CEO Karen S. Lynch. "These wage increases will have a meaningful impact on our colleagues and their families while helping the communities we serve prosper. Today's announcement is the latest in a series of investments in our people, including bonuses and benefit enhancements throughout the pandemic."

Moving to $15 an hour next year will mark a more than 60 percent increase in the CVS Health minimum enterprise hourly wage over a four-year period. The new wage structure incorporates additional increases beyond the enterprise minimum, with higher starting hourly rates for roles such as pharmacy technicians and call center representatives.

"With millions of visits per day to our nearly 10,000 locations across the country, our retail business plays an important role in how we deliver care," said CVS Health Chief People Officer Laurie Havanec. "Our track record on wages aligns with the evolving needs and expectations of CVS Health colleagues in customer-facing roles."

CVS Health has a longstanding commitment to workforce development and creating opportunities in the communities it serves. The company's Registered Apprenticeship program has placed thousands in retail pharmacy and management career tracks, with a focus on advancement. Last week CVS Health opened its newest Workforce Innovation and Talent Center in Pittsburgh, which provides employment services and training to underserved populations through partnerships with faith-based and community organizations. An additional location opened in Philadelphia this week, which will help bring financial stability to more individuals and families.

In addition to boosting wages, CVS Health is removing barriers to obtaining employment. Recently the company eliminated the high school diploma or GED requirement for most entry-level roles, and this year will eliminate the GPA requirement for university recruitment.

About CVS Health
CVS Health is the leading health solutions company, delivering care in ways no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and our nearly 300,000 dedicated colleagues – including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. Wherever and whenever people need us, we help them with their health – whether that's managing chronic diseases, staying compliant with their medications, or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system – and their personal health care – by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Learn more at www.cvshealth.com.

Media contact
T.J. Crawford
212-457-0583
CrawfordT2@CVSHealth.com

Investor contact
Susie Lisa, CFA
401-770-4050
Susan.Lisa@CVSHealth.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/cvs-health-announces-wage-increases-301347378.html

SOURCE CVS Health

FAQ

What is CVS Health's new minimum wage effective July 2022?

CVS Health is raising its minimum enterprise hourly wage to $15 effective July 2022.

How much will CVS Health's minimum wage increase by July 2022?

The increase will represent over a 60% rise in the minimum wage since 2018.

What percentage of CVS employees currently earn more than $15 an hour?

Approximately 65% of CVS Health employees earning hourly wages already make more than $15 an hour.

What changes is CVS Health making to its employment requirements?

CVS Health is eliminating the high school diploma requirement for most entry-level roles to improve job accessibility.