The retail industry is massive. When we say massive, we think of Walmart, Target, and Amazon massive. It was in 2017 that Target first announced the pay raise of $15 per hour. Many big brands such as Best Buy and Amazon, followed. Costco currently pays a starting wage of $17 per hour.
Target was in the limelight in March 2022 after announcing that they are planning a starting wage of $24 per hour. This doesn’t mean a bump in pay for current employees and will depend entirely on the market and specific job requirements. Target has yet to disclose which markets and jobs would see the pay increase.
Target CEO Brian Cornell spoke out
“The market has changed. We want to continue to have an industry-leading position.” He said. And while this tremendous pay bump is attractive, it’s not the only focus the company has taken regarding its staff. Target has also announced that they will increase their access to health care coverage. Something American employees so direly need.
The requirements that had to be met in order for Target to cover an employee’s health care benefits included a minimum of 30-hour work weeks. That has now been reduced to 25 hours instead. They are also looking at ways to reduce the timeframe it takes for employees’ coverage to kick in.
This sets the new benchmark for approximately 20% of Target’s staff to be eligible for coverage. Some of the new health plans even include virtual physical therapy and acupuncture at no cost. The same company partnered up with Dollywood to provide free education programs, including degrees, certificates, and boot camps to employees.
Read: Wendy’s is the most expensive fast food restaurant in 2022
Target’s chief human resources officer, Melissa Kremer, explained. “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.”
Kremer added. “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.”
Statistics on Target
With Target having approximately 350,000 employees positioned in 1,900 stores, they are investing an estimated $300 million back into their team in 2022 in pay increases and benefits. Those numbers are tremendous and very impressive. Now we need to wonder if other retailers will follow in their footsteps and offer their employees similar improvements. If not, Target is soon going to be flooded with applicants hungry for a little more reward.
Keep Reading: Server lashes out at customer who gave 10% tip after complimenting her performance
Sources
- “Target is raising its minimum wage to as much as $24 an hour.” NPR. Rina Torchinsky. March 1, 2022
- “Target Announces They Will Be Paying Starting Wages Up To $24/Hour.” Tip Hero.