Target said Monday it will spend $200 million on another round of employee bonuses and extend its coronavirus-related benefits after its strong holiday season. Indeed, Target has been one of the beneficiaries of pandemic trends, as shoppers consolidate trips, fill up bigger baskets and use curbside pickup. That pattern continued over the holidays, boosting the company’s comparable sales 17.2 percent, while its e-commerce sales more than doubled in November and December.
Target will give $500 bonuses to all hourly workers and bonuses of $1,000 to $2,000 to store directors and others in leadership positions. Target also said it would extend its coronavirus benefits into the new year to help its team members and their families navigate the impact of the pandemic. That includes waiving its absenteeism policy for coronavirus-related illness, providing free access to health care through virtual doctor visits for all team members, a 30-day paid leave for vulnerable team members, free backup care to all U.S.-based team members, mental health support through free counseling sessions, and more.
Total Retail's Take: In a company blog post, Target noted this is the fifth time the company has recognized team members with bonuses during the pandemic. It also said it moved to a $15 starting wage for U.S.-based team members. These initiatives, along with the other coronoavirus benefits mentioned above, mean Target's investment in its team members’ health, safety and well-being was $1 billion more in 2020 than it was in 2019. As we've done before, we offer kudos to Target and its leadership team for this latest round of investment in its frontline workers. Target has certainly benefitted from being designated an essential retailer during the pandemic, so it's only right for the company to redistribute those profits to its frontline and hourly workers, who are putting themselves in harm's way to ensure the discount retail chain remains operational.