Target plans to set a new starting wage range and expand access to health care benefits for its team members and their families.
Target Corp. is setting the bar for employee benefits in retail. Nearly two years after raising its starting wage, the company is now setting a new starting wage range from $15 to $24. This move is part of Target’s $300 million investment in benefits for 2022 that includes expanded access to health care for its team members and their families.
The new starting wage range will apply to hourly team members working in Target 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.
Beginning in April with its new benefits cycle, Target will also roll out broader, faster access to health care coverage for its hourly team members, in addition to enhanced employee benefits. These actions include:
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 will be eligible to enroll in a Target medical plan, down from the previous requirement of 30 hours per week.
A reduced 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.
Additional employee 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.
These expanded offerings help advance key portions of the company's Target Forward strategy 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 at 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."
Over the past five years, Target has introduced other enhancements to its benefits, including a debt-free college program; making Thanksgiving Day store closings permanent; providing access to health care for all team members via virtual doctor visits and mental health counseling; family-focused investments, including adoption and surrogacy reimbursement and paid family leave; access to more stable schedules; and ongoing coronavirus benefits.