Target Is Raising Its Workers’ Base Pay By A Big Amount
Target is giving back to its employees in a major way by raising their base pay by a generous amount.
This article is more than 2 years old
Target, already paying employees $15 a month, is now investing in a minimum-wage increase. This increase would push $15 an hour to $24, a more realistic wage based on inflation trajectories. The company plans to implement this new change by the end of the year.
Target, another business struggling with worker shortages during the pandemic, decided to make its pay and benefits more attractive to potential staff. This change is part of a $300 million investment to worker income for the company’s massive, nationwide team. Raising wages and providing more substantial employee benefits is a sure-fire way to eliminate a worker deficit.
Target is taking employee benefits more seriously in 2022, with added healthcare options for certain employees. If you work 25 hours a week or more, you’ll be able to apply for Target’s medical care plan. Now, 20% of employees will be eligible for healthcare options, a vastly higher percentage than in previous years. This healthcare expansion is part of the company’s costly investment into revamping its minimum-wage offer.
As a gigantic chain, Target provides some unique benefits for its employee’s new healthcare plan. Employees can receive free acupuncture and physical therapy for no extra cost, a pragmatic decision for a company that has employees on their feet all day. Comprehensive fertility benefits will also be available through the updated healthcare plan, alongside early access to a 401k.
Target was one of the first large-scale retailers to implement the $15 an hour minimum wage. Though this move was unprecedented in 2017, raising the minimum wage by a few dollars does not help American citizens significantly. The cost of living has exponentially increased over the past ten years, so the standard salary would need to be higher to match U.S. inflation rates. With Target adopting $24 an hour for certain employees, the retailer is beginning to give workers a real living wage.
Since the pandemic began, retailers and businesses nationwide have experienced the burden of the ongoing labor shortage. With many weighing their options between working and becoming infected with COVID, workers around the nation dropped their minimal-benefits jobs for safe quarantine and government checks. This finally pushed businesses into adjusting their wages and benefits to attract and retain their necessary workers. Target is setting an example by showing what a multibillion-dollar company should be offering its hardworking staff.
Target is one of the few retailers experiencing a positive employee retention rate by boosting its pay. Its turnover rate is now significantly lower than before the pandemic started. This came at an opportune time for the company, as it needed to hire thousands of employees for its busy holiday season in December. Due to Target’s increase in pay and work benefits, the corporation exceeded its holiday hiring expectations and employed more than 100,000 people nationwide.
Target’s $24 an hour minimum wage is beneficial for the retailer and its entire staff. Though this is an incredible boost for low-wage workers, Target has yet to indicate exactly who will be eligible for this pay increase. All that’s known is that hires in more competitive markets will be selected for the larger hourly wage.
