What Employee Benefits Does Target Offer?

FT Contributor  | 

With more than $75 billion in revenue in 2018, Target is one of America’s leading retailers. In fact, more than 75% of Americans live within 10 miles of a Target store, which draws customers with its cheerful red bullseye logo, its ever-changing mix of household staples and on-trend products, and friendly service.

But what’s it like to work for Target? The company aims to support employees with comparatively high wages and a comprehensive benefits package. Here’s a look at those benefits in greater detail.

Target Careers and Job Outlook

The majority of Target’s 350,000 employees are hourly workers in stores, known as “team members.” Most work part-time, although store management is often staffed with full-time employees.

In addition to the more than 1,800 stores, Target also has corporate offices in Minneapolis, MN, five district offices in California, Pennsylvania, and Arizona, and 41 distribution centers. The company maintains 12 sourcing offices in Asia and India. Many of these corporate positions are salaried jobs.

As the second-largest retailer in the U.S., Target is a consistent employer, and most stores are always hiring new employees. In addition to providing a competitive benefits package, the company is committed to providing a minimum starting wage of $15 per hour for all employees by the end of 2020, as well as opportunities for career growth and development. Many individuals in leadership roles throughout the company began as store employees, and the company rewards commitment and experience.

Target Health Insurance

Target employees who meet eligibility requirements (determined by position, time with the company, and the number of hours worked) can enroll in health coverage plans. Hourly employees typically need to work for the company for at least 12 months to qualify for health coverage, and their eligibility is determined by calculating the average number of hours worked in the previous 12 months at the beginning of each benefit year. At that point, employees can choose the plan that best meets their needs.

The company offers two account-based medical plans for employees: a Health Reimbursement Account (HRA) or Health Savings Account (HSA), both administered by UnitedHealthcare. In some regions, employees can also select plans administered by Kaiser or HMSA. Both plans include automatic enrollment in a vision plan that covers exams, but not prescription eyewear.

Target’s health plans allow employees to contribute money to an account to help cover the cost of medical expenses. In addition to the premiums paid out of each check, team members can earn additional contributions from the company when they complete certain healthy activities. The plans cover preventive care at zero cost, but additional health care is paid from the employee accounts until the deductible is met.

Under Target’s HRA plan, employees pay higher premiums from their paychecks, but have lower deductibles. Medical expenses are paid directly from the HRA until the deductible is met, and then the employee makes co-payments for additional expenses. The HRA cannot be used to cover vision, dental, or pharmacy expenses. Employees make an out-of-pocket co-payment for prescriptions until the deductible is reached. With an HRA, employees cannot add additional money to the account, but unused funds roll over from year to year. However, when an employee leaves the company, the funds revert to Target.

The HSA plan for Target employees takes less out of each paycheck, but the deductibles are higher. Employees can use their HSA for all eligible medical, pharmacy, vision, and dental expenses, but they pay for prescriptions out-of-pocket until they reach the deductible. At that point, there are prescription co-payments. The HSA allows employees to add additional funds to their accounts, and any unused funds roll over from year to year. Employees also get to keep their HSA even if they leave Target.

Target employees may also opt to enroll in vision and dental coverage plans. Again, if the employees are enrolled in an HRA or HSA from UnitedHealthcare, they automatically receive coverage for eye exams. An additional Vision Eyewear Plan is necessary to cover the cost of prescription glasses or contact lenses.

Dental coverage is also an option. Target works with Delta Dental to offer three different levels of coverage, all of which provide 100% coverage for preventive dental services, and varying levels of coverage for other expenses.

Target supports the health and well-being of its team members through a variety of additional wellness programs and initiatives. These include free annual flu shots, access to free mental health counseling and support services, disease management programs, a prescription discount program, and maternity support.

Employees and their spouses can also participate in the Well-being Rewards Program, which provides bonus money to HRA and HSA accounts for completing designated activities. To help employees reach their goals, the company increases the employee discount to 20% for certain health and wellness products.

Time Off

All Target employees, including hourly store employees, qualify for paid time off. How much depends on their position, number of hours worked, and how long they’ve been with the company.

Paid time off is offered as paid vacation, sick days, and paid holidays. Employees can also take bereavement leave. In some cases, employees may qualify for extra paid time off when they participate in designated wellness activities.

Time off for new parents is included in Target’s time off policies. Employees may take maternity or paternity leave, in accordance with federal laws and company policies, for the birth of a child (including a child born from a surrogate), adoption, or foster care.

Retirement

Target offers all employees the opportunity to save for retirement via a 401(k) plan. You may enroll in the plan once you’ve worked and earned wages for 1,000 hours. The company matches contributions dollar for dollar, up to 5% of your pay. When you enroll in the 401(k) plan, you can determine whether you want to make pre-tax contributions, after-tax contributions, or Roth IRA contributions.

Certain corporate Target employees are eligible to save additional money for retirement via an Executive Deferred Compensation Plan. Employees who were hired prior to 2009 and meet certain service requirements are also eligible for a pension plan.

Other Benefits of Working at Target

In addition to health coverage and retirement benefits, Target team members enjoy a variety of additional perks.

Employee Discount

All Target employees receive a card entitling them to a 10% discount on all purchases. The discount on grocery and wellness items is 20%. Employees can use their discount in addition to all sales, rebates, coupons, and rewards.

Target also provides employees with access to a dedicated discount website to help them save money on non-Target purchases. The company has relationships with fitness centers nationwide, Weight Watchers, and child care centers to provide employee discounts.

Tuition Assistance/GED Reimbursement

Target supports the education and development of employees through several educational benefits. If you take job-related courses from an accredited program, Target may reimburse some or all of the tuition costs. Reimbursement amounts vary based on the type of courses you take.

Although Target does not offer any student loan repayment options, you may be able to consolidate and refinance your loans via the Target Credit Union. Doing so can reduce the interest you pay over the life of the loan, reduce monthly payments, or help you pay off your loan faster.

For team members who want to earn a GED, the company will support you by covering some of the costs associated with it. Again, eligibility depends on how long you’ve been with the company.  

Work-From-Home

Employees working in the company’s corporate offices may have the opportunity to work from home. Eligibility depends on the employee’s role and how long they’ve been with the company.

Adoption Assistance

Target employees who are expanding their families via adoption or surrogacy may be eligible for assistance from the company. Qualifying employees can receive financial assistance with fees, court costs, attorney’s fees, transportation costs, and costs associated with surrogacy.

Target Credit Union

Target employees have the option of joining the Target Credit Union, which offers a full array of financial services to team members, including checking and savings accounts, loans (home, auto, and student), and wealth management and investment options.


Image Source: https://depositphotos.com/