Ahead of releasing fourth-quarter and full-year fiscal 2021 earnings on March 1, Target Corp. said it is raising its starting wage to anywhere from $15 an hour (where Target's minimum has stood since 2020) to $24 an hour, depending on the job and the local market.
The new wage range covers hourly employees working at Target stores, supply-chain facilities and headquarters locations, according to the company. The Minneapolis-based retailer said in a blog post Feb. 28 that the move is meant to "position Target as a wage leader in every market in which we operate."
"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," Target Chief Human Resources Officer Melissa Kremer said in a news release. "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." The company said it will invest up to $300 million more in its workforce in the coming year.
Target also said that employees working a minimum average of 25 hours per week will be eligible for more benefits, sooner. Beyond shortening the waiting period for enrolling in benefits, Target said that it has expanded fertility benefits and doula reimbursement in most health plans for 2022 and that most plans also will offer free virtual physical therapy and acupuncture coverage. Employees will have quicker access to 401(k) saving plans, as well, according to the company.
In August, Target announced that it was offering fee-free tuition to full- and part-time U.S. team members through a partnership with Guild Education and more than 40 colleges, universities and other educational institutions. The announcement followed, by a week, Walmart's announcement that it was going fee-free for its Live Better U tuition-assistance program.