Target enhances employee wages, benefits

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MINNEAPOLIS — Target, which in 2017 announced a path to a starting wage of $15 an hour for all employees, now plans to set a new starting wage range and expand access to health care benefits for its team members and their families.

Target Lake Street storeThe retailer said Monday that it is setting a new starting wage range from $15 to $24. The new approach will apply to hourly team members working in Target stores, supply chain facilities and headquarters locations, positioning Target as a wage leader in every market where it operates, the company said, noting that the exact starting wage within the range will depend on the job and the local market, with market-level wages set by the retailer based on industry benchmarking, local wage data and more.

“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. “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. “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.”

Beginning in April with its new benefits cycle, Target also will roll out broader, faster access to health care coverage for its hourly team members, in addition to new and enhanced benefits. These actions include:

  • Expanded access: About 20% of Target’s team will now be newly eligible for comprehensive health care benefits. Hourly store team members who work a minimum average of 25 hours a week will be eligible to enroll in a Target medical plan, down from the previous requirement of 30 hours per week.
  • Reduced enrollment waiting periods: Target also will reduce the waiting period for all eligible hourly team members to enroll in a Target medical plan. Depending on position, eligible team members can access comprehensive health care benefits three to nine months sooner.
  • Enhanced benefits: Target will provide additional benefits, including virtual physical therapy at no cost, enhanced fertility benefits and other new wellness offerings, as part of most Target medical plans. Team members also will gain faster access to 401(k) plans.

Target said the enhanced pay and benefits package represents an increased investment of up to $300 million more in its team in the year ahead. The company said the investments build on a number of enhancements it has already made to its pay and benefits, offering team members a total package that responds to their evolving needs. In the past five years, the company has invested in:

  • An industry-leading debt-free education assistance program with access to more than 40 schools and 250+ business-aligned programs.
  • Access to health care for all team members via virtual doctor visits and mental health counseling, as well as online resources to support mental, emotional and physical well-being.
  • Family-focused investments, including adoption and surrogacy reimbursement and paid family leave.
  • Access to more stable schedules and one-on-one meetings with team leaders to accommodate team members’ desired hours.
  • Ongoing coronavirus benefits, including providing free backup care for all team members, offering paid leaves, providing all U.S.-based hourly team members with two hours of pay per dose (including boosters) when they get the coronavirus vaccine, and providing all U.S.-based team members with free Lyft rides to get to and from their vaccine appointments.

 


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