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Target to pay out $200 million in employee bonuses

Investment marks fifth round of pandemic-related ‘thank you’ payments

Russell Redman

January 25, 2021

4 Min Read
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The recognition pay includes $500 bonuses to all hourly workers in stores, distribution centers, and corporate and field-based offices, Target said.Target

Following a strong holiday season — and a difficult year working under a national pandemic — Target Corp. is investing $200 million in employee recognition bonuses across its operations.

Target said Monday that it plans to pay $500 bonuses to all hourly workers in stores, distribution centers, and corporate and field-based offices. Also, all store directors, executive team leaders and salaried distribution center leaders — about 12,000 people in total — will receive bonuses of $1,000 to $2,000. 

“We’re so proud of our team. They’re the heart and soul of Target, showing up for one another and our guests — and making Target a safe and easy place to shop and work. And never has their dedication, resiliency, care and compassion been more appreciated than during the pandemic,” Target stated in announcing the bonuses, noting that 2020 was “a year unlike any other.”

The $200 million investment marks the fifth time that Minneapolis-based Target has given bonuses to frontline workers or team leaders since the COVID-19 outbreak.

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. 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. 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 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. Also in July, Target paid out performance bonuses to all store directors, executive team leaders and salaried distribution center leaders.

Related:E-commerce gives Target holiday sales boost

Most recently, in October, Target announced $200 bonuses for 350,000 hourly frontline workers in stores and distribution centers, including seasonal hires, and in customer and employee contact centers. The company said the bonus round, paid out by early November, represented a $70 million-plus employee investment heading into the holiday season.

“Over the last year, this team has stepped up in remarkable ways,” Target Chairman and CEO Brian Cornell said in a video announcing the new bonuses. “You are the backbone of our success,” he added. “Our teams have stepped up again and again, despite the challenges, to serve our guests and to serve America.”

Related:Target plans fourth round of bonuses for frontline workers

Target shared comments from some employees who said the recognition pay throughout the year provided a lift.

“The bonus was a huge relief, and it helped me tremendously,” said Alejandro Madrid, a checkout advocate for Target in Brooklyn Park, Minn. “I’m happy to know that Target cares for my well-being. I helped my mom with bills, and I’m fortunate enough to have saved a portion of the bonus.” 

Brooke Starling, a Target executive team leader for human resources in Dallas, said, “We were impacted by so many things this year, including my husband being laid off, leaving my salary to provide for us and our children. The bonus that Target provided relieved some of the stress we were experiencing as a family. It also made me continue to believe in the work I do every day for my team and community.”

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Overall, Target said it invested about $1 billion more in employee compensation, benefits, health and safety during 2020 versus 2019. The company added that it’s extending COVID-19 benefits into 2021, including a waiver of its absenteeism policy for coronavirus-related illness, free access to virtual doctor visits for all employees, a 30-day paid leave for vulnerable associates, free backup care for all U.S.-based employees, and free mental health counseling.

Also on Monday, Target’s Shipt same-day delivery subsidiary announced a $3.6 million investment in bonuses for its base of personal shoppers, who pick and deliver online orders. Shoppers who delivered more than 50, 100, 300, 500 and 1,000 orders in November and December will receive respective one-time payments of $50, $100, $150, $250 and $500 on Jan. 29.

Birmingham, Ala.-based Shipt said most of its personal shoppers completed upwards of 100 orders in what turned out to be the company’s busiest holiday season.

“Despite challenges, Shipt shoppers rose to the occasion and proved to be a vital and reliable holiday resource in their communities,” Shipt CEO Kelly Caruso said in a statement. “During the weeks between Thanksgiving and Christmas, we saw order volume increase 200% when compared to last year. That means time and time again, Shipt shoppers went above and beyond, and these thank-you bonuses recognize their loyalty, hard work and dedication to service.”

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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