Noting the importance of investing in its team members, Target announced a new starting wage range of $15 to $24 per hour, along with greater healthcare access for workers and their families. The enhanced pay and benefits packages will require Target to invest up to $300 million this year.
“Our team is at the heart of our strategy and success, and their energy and resilience keep us at the forefront of meeting the changing needs of our guests year after year,” said Melissa Kremer, Chief Human Resources Officer at Target in a statement. “We continuously listen to our team members to understand what’s most important to them, then use the feedback to make investments that meet their needs across different career and life stages.”
Target implemented a $15 per hour minimum wage in June 2020, fulfilling a promise to raise its rates made in 2017. Now Target’s starting wage range will be$15–$24 for hourly store associates, supply chain facility workers and employees who work at its headquarters. Target also will allow team members to more quickly gain access to 401(k) plans.
Additionally, approximately 20% of the Target team will now be afforded access to comprehensive healthcare benefits. The minimum hours required to qualify for benefits has been reduced from 30 to 25 per week, and the retailer also is offering reduced enrollment waiting periods and more options including no-cost virtual physical therapy, enhanced fertility benefits and updated wellness offerings.
“We want all team members to be better off for working at Target, and years of investments in our culture of care, meaningful pay, expanded health care benefits and opportunities for growth have been essential to helping our team members build rewarding careers,” said Kramer.
Target noted that, within the last five years, it has invested greater resources into its workers, including:
• Employee access to debt-free education assistance;
• Healthcare for team members, including mental-health counseling;
• Family-focused initiatives including adoption and surrogacy reimbursement and paid family leave;
• Stable scheduling and one-on-one meetings with team leaders; and
• Continued COVID-19 benefits.