US department store chain Target Corporation has increased its starting wage range to $24 (£18) per hour from $15 (£11) for its more than 400,000 employees.
This will apply to hourly team members working in Target stores, supply chain facilities and headquarters locations. The exact starting wage within the range that employees will receive depends on the job and the local market, because market-level wages set by the retailer are based on factors such as industry benchmarking and local wage data, among other reasons.
As well as introducing a new starting wage range, the retailer also intends to expand access to healthcare benefits for its employees, of which about 20% will now be newly eligible.
These benefits will include virtual physical therapy at no cost, enhanced fertility benefits and other new wellness offerings as part of most Target medical plans. Hourly store team members who work a minimum average of 25 hours a week will be eligible to enrol in a medical plan, which is down from the previous requirement of 30 hours per week.
These benefits will help to advance the organisation’s Target Forward strategy that aims to create equity and opportunity for its employees, partners and communities. The retailer will invest up to $300 million (£225.4 million) more in its team in the year ahead through these enhancements.
Melissa Kremer, chief human resources officer at Target, said: “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 want all team members to be better off for working at Target, and years of investments in our culture of care, meaningful pay, expanded healthcare benefits and opportunities for growth have been essential to helping our team members build rewarding careers.”