Target says it will increase worker pay by $2 an hour until May 2 and possibly beyond. In addition, Target is offering a new option for all employees who are 65 or older, pregnant or those with underlying medical conditions to access paid leave effective immediately.
Target will also pay bonuses to frontline team members, including, for the first time, bonuses for 20,000 hourly store team leads who manage individual departments in its stores across the country.
“We continue to experience incredible demand across our business, and Target’s ability to help our guests in this unprecedented time would not be possible without the strength of our team. I am proud and humbled by the dedication and humanity they show to our guests every day,” said Brian Cornell, CEO of Target. “Increasing their compensation for a job incredibly well done and ensuring continued compensation for those who need to care for themselves and their families is a reflection of our company’s values and simply the right thing to do.”
Target raised its minimum pay last year to $13 per hour and is trying to increase this to $15 per hour this year. Walmart also announced this week it will give full-time employees a $300 bonus and part-time workers a $150 bonus payable on April 2.
Details of Target’s team member investments announced include:
- Increased Wages: With the $2-an-hour wage increase, store and distribution center hourly full-time and part-time team members will earn $240-$480 more, on average, during this timeframe. After working with its current team to offer extra hours, the retailer will pursue additional hiring where needed.
- Team Member Paid Leave: Effective immediately, Target is offering a new option for team members who are 65 or older, pregnant or those with underlying medical conditions per the Centers for Disease Control and Prevention to access paid leave for up to 30 days. This comes on top of expanding back-up care for all team members, temporarily waiving its absenteeism policy and covering quarantine and confirmed illness pay.
- Bonus Payouts: For the first time, this April, Target will pay out bonuses to 20,000 hourly store team leads who oversee individual departments in Target stores, ranging from $250-$1,500.
- Team Member Giving Fund: $1 million will be donated to the Target Team Member Giving Fund to assist team members who are most impacted by coronavirus. Established in 2018, the fund has supported hundreds of team members year-round through times of hardship, and Target will match up to an additional $1 million in contributions from fellow team members who seek to assist their colleagues in need.
“Families across the country are counting on Target in so many ways during this pandemic, and our team has been nothing short of remarkable,” said Cornell. “The commitments we’re making today will provide additional resources for our most valuable asset—our team, their families and the communities impacted by the coronavirus.”