Target (NYSE:TGT) is looking to reel in more high-quality workers by expanding its employee benefits in a way that will make life more comfortable and convenient for them as workers of the business.
The Minneapolis, Minn.-based retailer announced that it is improving its benefits at a time when unemployment numbers are at the lowest level they’ve been in decades. The business said on Monday that workers will now have better child care benefits, as well as improved family leave.
The move applies to 350,000 part-time and full-time hourly employees across Target’s stores, distribution centers and headquarters. This is an especially relevant move for the company considering how frequently workers leave jobs for big retailers, which can disrupt such businesses at a time when online commerce continues to grow.
The brand has also increased its starting wage to $13 an hour, while also pledging to take this amount to $15 an hour by the end of 2020–both Costco and Amazon have announced a starting wage hike to $15 an hour. “We’ve taken a strong position on minimum starting wages, but that’s just one facet,” Melissa Kremer, Target chief HR officer, said in prepared remarks.
The new benefits will garner workers 20 days of backup child care or elder care through a partner network. Employees can also bring their child to an in-network day care center for about $20 a day–they can also opt to pay a subsidized hourly rate for in-home care.
TGT stock is up about 0.4% on Tuesday following the news.
