In appreciation of the unprecedented efforts of frontline workers amid the pandemic, Target Corporation TGT is awarding a bonus of $200 to more than 350,000 team members ahead of the holidays. The $70-million bonus will be provided to eligible hourly team members in stores and distribution centers. This also includes seasonal hires and hourly team members who provide support to Target’s guest and team member contact centers.
This marks the company’s fourth bonus awarded this year. Markedly, the bonuses are part of the company’s $1 billion worth investments allotted this year for meeting requirements such as the well-being, health and safety of team members. This also includes the company’s move to increase minimum hourly wages to $15 (reflecting an hourly rise of $1) earlier in July.
Focus on Frontline Employees Bodes Well
The series of bonuses provided this year underscores Target’s efforts to offer financial support to frontline employees since the beginning of the pandemic. Apart from this, the company has been providing recognition and support to its employees by offering facilities like virtual doctor visits, extension of paid leaves and free backup care for family members.
Markedly, during second-quarter fiscal 2020, the company invested nearly $400 million toward team members’ pay benefits and measures to protect the health and safety of guests as well as its team. In its last earning call, management highlighted that the company’s investments in its team has motivated them to perform well and thereby achieve strong sales growth.
In addition to Target, few other retailers have also provided financial support to frontline associates in recognition of their esteemed contribution during the pandemic. For instance, Walmart Inc. WMT distributed special cash bonuses to frontline associates working across Walmart stores, Sam’s Clubs and supply chain facilities. Earlier this month Lowe’s Companies Inc. LOW committed to pay an additional $100 million of discretionary bonuses to its frontline hourly workers across U.S. stores, distribution centers and store support centers. Also, The Kroger Co. KR has been incurring costs related to additional employee payments and benefits.
Clearly, Target’s efforts exemplify that it is committed and sensitive toward employees as much as it is toward customers during this pandemic.
Markedly, this Zacks Rank #2 (Buy) stock has gained 36.5% in the past three months compared with the industry’s growth of 16.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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