With a planned investment of up to $300 million in the year ahead, Target Corp. is setting a new starting wage range and expanding access to health care benefits for its employees and their families.
In 2017, Target announced that it would raise its starting wage to $15 per hour over time, and the company hit that number nearly two years ago, it pointed out. Now, the company is setting a new starting wage range from $15 to $24 that will apply to hourly team members working in Target stores, supply chain facilities and headquarters locations. The pay raise will position Target as a wage leader in every market where it operates, the company asserted. The exact starting wage within the range will depend on the job and the local market, with pay determined by the retailer based on industry benchmarking, local wage data and other considerations.
In April, as its new benefits cycle begins, Target will roll out broader, faster access to health care coverage for its hourly employees, in addition to new and enhanced benefits. About 20% of Target’s team will be newly eligible for comprehensive health care benefits. Hourly store team members who work a minimum average of 25 hours a week can enroll in a Target medical plan, down from the previous requirement of 30 hours per week. Target also will reduce the waiting period for eligible hourly team members to enroll in a Target medical plan so that now, depending on position, eligible team members can access comprehensive health care benefits three to nine months sooner than previously.
Target will provide additional benefits, including virtual physical therapy at no cost, enhanced fertility benefits and other new health-related offerings as part of most Target medical plans.
Team members also will gain faster access to 401(k) plans.
“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, 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.”