In an additional investment in employee compensation and benefits, Target Corp. has announced that the company is permanently raising its starting wage to $15 an hour starting July 5.
In a blog post, the company also announced it is giving front-line store and distribution center employees a one-time recognition bonus of $200 to thank them for providing essential services to customers during the coronavirus pandemic.
In doing so, Target will invest almost $1 billion more this year in the well-being, health and safety of employees than it did in 2019, the company maintained, including increased wages, paid leaves, bonus payouts, personal protective equipment and a donation to the Target Team Member Giving Fund.
In September 2017, Target announced that it was boosting wages with starting pay set to reach $15 an hour by the end of 2020. It established a $2 an hour temporary wage increase in March 2020 as part of initiatives to address the coronavirus crisis, the company noted, extending it twice. Target will distribute the $200 recognition bonus at the end of July to eligible full-time and part-time hourly team members at stores and distribution centers, following up on bonuses of $250 to $1,500 paid out in April to 20,000 hourly store team leads who oversee individual departments in Target stores.
In addition, Target stated that it would offer free access to health care through virtual doctor visits, regardless of whether team members currently subscribe to a Target health care plan.
“In the best of times, our team brings incredible energy and empathy to our work, and in harder times they bring those qualities plus extraordinary resilience and agility to keep Target on the forefront of meeting the changing needs of our guests and our business year after year,” said Brian Cornell, Target chairman and CEO, in announcing the initiatives. “Everything we aspire to do and be as a company builds on the central role our team members play in our strategy, their dedication to our purpose and the connection they create with our guests and communities.”