Target to hike wages up to $24 an hour
Employees at Target stores and distribution centers could soon see some of the highest wages in the retail industry.
The discounter said that it is lifting its starting wage from $15 to $24 per hour in a move to position itself “as a wage leader in every market where we operate.” The new pay range will apply to all hourly workers across stores, supply chain facilities and headquarters locations.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. In October 2020, Target announced it was raising its starting wage to $15 an hour, beginning on July 5.
Target is also expanding its health benefits. Hourly workers who work 25 hours or more a week will now be eligible to enroll in the chain’s medical plan, down from the previous requirement of 30 hours. The shift means that about 20% of Target's team will now be newly eligible for comprehensive health care benefits.
The company is also reducing the waiting period for all eligible hourly team members to enroll in a medical plan. Depending on position, eligible employees can access their health care benefits three to nine months sooner.
In addition, Target is adding new benefits to its health plans. Most will include free virtual physical therapy, enhanced fertility benefits and acupuncture coverage.
The retailer is also providing faster access to its 401 (k) plan.
“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. 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,” said Melissa Kremer, chief human resources officer, Target. “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.”
[Read More: Target to pay employees extra for working peak days of holiday season]