Target to increase its minimum wage for employees

Some Target employees will soon see a bump in pay.

The retail giant announced that it is raising its minimum wage to $12 this Spring. That's a $1 increase from its current level.

Officials with the company said season job applications rose after the announcement of the upcoming pay hike.

They also said that they are seeing a "much stronger pool of talent." However, some investors appear to be a little leery of the raise.

Shares of Target dropped 5 percent on Tuesday, despite a 10 percent increase in fourth-quarter revenue and a 30 percent leap in digital sales compared to the previous year.

Target says it still plans to make minimum wage $15 per hour before the end of the decade.