In April, Target announced bonuses ranging from $250 to $1,500 for 20,000 hourly store team leads, who oversee individual departments in Target stores. Then in mid-June, Target unveiled plans to permanently raise its starting hourly wage to $15, effective July 5, via an upgraded and extended pay and benefits package for its U.S. workforce.
The bonuses were part of a $300 million package of paid leave and employee relief benefits plus a $2 hourly wage increase through May 2. Employers interested in offering a hybrid-type of plan as an employee benefit should consider a target benefit plan, which can be structured to provide the owner of a business with valuable benefits. Then, the employer calculates how much they need to contribute to the plan each year, with an assumed investment return, to save enough to pay the future employee benefits.
Employers may choose to offer a hybrid plan as a retirement benefit for their employees. New employees will now start at a minimum of $15 per hour, up from the prior $13 hourly minimum wage. The actual amounts the employees receive could be higher or lower though, depending on the plan’s actual investment performance.
The plan’s only obligation is to pay whatever benefit can be provided by the amount in the contributor’s account. When the employer sets up a plan, they give each employee an estimate of the payout they would receive during retirement, which is the target benefit.
Also in July, Target paid out performance bonuses to all store directors, executive team leaders and salaried distribution center leaders. Starting July 5, U.S. team members will receive a minimum of $15 an hour, up from $13 an hour.
The retailer also announced a $200 “recognition bonus” to be paid at the end of July to frontline store and distribution center hourly workers, including full- and part-time staff, for their efforts during the COVID-19 crisis. Target is giving one-time bonuses of $200 for its store and distribution center hourly workers, too. A $2-an-hour wage increase is being given to store and distribution center hourly full-time and part-time team members until at least May 2, which will earn them $240-$480 more, on average, during this timeframe, Target said.
If an employee who works in the company of the target company can access the advantages offered by the official Target Pay And Benefits Login portal. The company also rolled out enhanced safety measures in its stores and distribution centers, including face masks and gloves to all team members as well as rigorous cleaning and social distancing procedures.
A target benefit plan is a cross between a defined benefit plan and a money purchase pension plan. As their name implies hybrid plans form a category of retirement plans that combine certain features of both defined benefit and contribution plans.
Target said Monday that it plans to pay $500 bonuses to all hourly workers in stores, distribution centers, and corporate and field-based offices. Treating front line workers well will go a long way to improving the level of service they provide which increases customer loyalty and purchases.
In a money purchase pension plan, contribution for identically compensated employees are the same even though their ages differ; in a target benefit plan, age is one of the factors that determines the size of the contributions. Overall, Target said it invested about $1 billion more in employee compensation, benefits, health and safety during 2020 versus 2019.