Target is serious about cutting employee turnover
Target cut its employee turnover rate between 2019 and 2021 to a five-year low, but clearly the chain’s leaders think it can do better. The retailer made news yesterday when management said it would offer starting wages as high as $24 an hour depending on the job and location. Target offers a $15 minimum wage, which went into effect in July 2020.
“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,” said Melissa Kremer, chief human resources officer, Target, in a statement. “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. 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.”
Target will invest up to $300 million to meet its wage pledge and to expand healthcare benefits to more of its associates.
The retailer said that it will be the “wage leader in every market where it operates.” The $15 to $24 pay scale applies to hourly associates working in the chain’s stores, warehouse facilities and headquarters. Target plans to set pay based “on industry benchmarking, local wage data and more.” Associates will also gain quicker access to the retailer’s 401(k) plan.
The company shared that it would give hourly associates quicker access to healthcare benefits beginning in April. Target is cutting the number of hours per week from 30 to 25 that associates need to work to qualify for healthcare. New hires will also qualify to receive benefits three to nine months sooner than before, depending on position.
Target is also providing additional benefits such as virtual physical therapy at no cost, and adding fertility benefits and other offerings to its medical plans.
The retailer debuted a new debt free college program last fall. All of the company’s full- and part-employees are eligible to participate, with new recruits eligible on the first day they begin working with the company.
- Target to Set New Starting Wage Range and Expand Access to Health Care Benefits to More Team Members – Target Corporation
- Target is giving associates even more reasons to stay – RetailWire
- Target may just be the best place to work in retail – RetailWire
DISCUSSION QUESTIONS: Is Target succeeding in being perceived by current and prospective retail workers as an employer of choice? How can Target and other retailers get employees to think of building careers with them instead of simply doing a job?