In recognition of the significant contributions its frontline team members are playing during an incredible time of need, Target (NYSE: TGT) today announced it is raising its industry-leading pay by $2 an hour until at least May 2. In addition, effective immediately, Target is offering a new option for all team members who are 65 or older, pregnant or those with underlying medical conditions to access paid leave. Target’s latest investments include bonuses it is paying out 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.”
Details of Target’s team member investments announced today 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.”
In addition to the $1 million donation to the Target Team Member Giving Fund, Target and the Target Foundation have committed another $9 million to expand relief and assistance to organizations helping respond to the coronavirus. This commitment is the retailer’s largest donation to a single relief effort.
In addition to team members, the $10 million donation will support efforts in three areas:
- Local Communities – $5 million will be committed to state and local community foundations supporting nonprofit organizations addressing the greatest needs in their area, including vulnerable populations such as underrepresented communities.
- National Organizations – $3 million will support partners such as Feeding America and others, assisting with response and recovery for affected communities.
- Global Response – $1 million will support organizations such as UNICEF and others, helping provide critical medical equipment and supplies to regions around the world.
And, as always, with every purchase they make, members of the company’s free loyalty program, Target Circle, can assist in supporting their local communities and nonprofits. Through the program, members can direct Target’s giving to local organizations, helping have a positive impact in their community.
Statements in this release regarding expected pay and benefits costs are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties which could cause the Company’s actual results to differ materially. The most important risks and uncertainties are described in Item 1A of the Company’s Form 10-K for the fiscal year ended Feb. 1, 2020. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update any forward-looking statement.
Minneapolis-based Target Corporation (NYSE: TGT) serves guests at nearly 1,900 stores and at Target.com. Since 1946, Target has given 5% of its profit to communities, which today equals millions of dollars a week. For the latest store count or for more information, visit Target.com/Pressroom. For a behind-the-scenes look at Target, visit Target.com/abullseyeview or follow @TargetNews on Twitter. For more on the Target Foundation, click here.