Target to Set New Starting Wage Range and Expand Access to Health Care Benefits to More Team Members

Rhea-AI Summary

Target Corporation (NYSE: TGT) announced plans to raise its starting wage range to between $15 and $24 per hour and expand health care benefits for team members. The move, part of the company's strategy to enhance equity and opportunity, will result in an additional investment of up to $300 million this year. Approximately 20% of hourly team members will become newly eligible for comprehensive health coverage, with access to health plans available sooner and enhanced wellness benefits introduced. These steps aim to support team members' growth and well-being.

Positive

• Investment of up to $300 million in team wages and benefits.
• New starting wage range set between $15 and $24 per hour.
• Approximately 20% of team members newly eligible for health care benefits.
• Reduced enrollment waiting periods for health care coverage.

Negative

• None.

MINNEAPOLIS, Feb. 28, 2022 /PRNewswire/ -- Target Corporation (NYSE: TGT) today announced another milestone in its long-standing commitment to its team: plans to set a new starting wage range and expand access to health care benefits for its team members and their families. These expanded offerings help advance key portions of the company's Target Forward strategy that aim to create equity and opportunity for Target's team, partners and communities.

"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."

With these enhancements to Target's robust pay and benefits package, the retailer will invest up to $300 million more in its team in the year ahead.

New Starting Wage Range

Target led the retail industry by announcing in 2017 that it would raise its starting wage to $15 per hour, hitting the milestone nearly two years ago. The company is now taking its next meaningful step by 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 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.

Expanding Access to Health Care Benefits

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.

Most Rewarding Careers

Today's investments build upon many enhancements Target has 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.

About Target

Minneapolis-based Target Corporation (NYSE: TGT) serves guests at more than 1,900 stores and at Target.com, with the purpose of helping all families discover the joy of everyday life. Since 1946, Target has given 5% of its profit to communities, which today equals millions of dollars a week. Additional company information can be found by visiting the corporate website and press center and by following @TargetNews.

 

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SOURCE Target Corporation

FAQ

What is the new starting wage for Target employees?

Target is raising its starting wage range to between $15 and $24 per hour.

How much is Target investing in wages and benefits?

Target plans to invest up to $300 million more in wages and benefits for its team.

When will the new health care benefits take effect for Target employees?

The new benefits cycle and expanded access to health care coverage will begin in April.

What percentage of Target's team will be eligible for new health care benefits?

About 20% of Target's team will now be newly eligible for comprehensive health care benefits.

What changes are being made to health care enrollment at Target?

Target is reducing the waiting period for eligible hourly team members to enroll in health plans.