The move comes as the labor market has tightened over the last year, with millions of Americans changing roles in what has been called The Great Resignation. The labor movement has led many retailers to increase wages and add new benefits, such as coverage for tuition and other educational expenses.
Overall, Target is investing $300 million more in 2022 on its team members and staffing efforts. The company has more than 350,000 team members at its stores. In addition, Target announced it is cutting the waiting period to enroll in employee benefits. Plus, team members are eligible for benefits by working a minimum of 25 hours per week.
Target’s health plans also have new coverage options. Team members have faster access to Target’s 401(k) plan, free virtual physical therapy, enhanced fertility benefits, and doula reimbursement and acupuncture coverage.
“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,” Melissa Kremer, chief human resources officer of Target, said in a statement. “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 was one retailer that gave bonuses to its employees during the pandemic. The company launched a massive hiring blitz in fall 2021 ahead of the holiday season.
Target has been ramping up its in-store experiences, and it most recently added the option to include a Starbucks order in Drive Up orders. The retailer’s foot traffic has been particularly strong heading into 2022, even outpacing its competitors, according to recent data. In addition, Target has made good on its diversity pledge, recently adding more than 40 new beauty brands to its shelves, including clean and Black-owned brands.