Tue. Jun 25th, 2024

Target increases paid staff incentives by double as profits soar.

By Jennifer Mar 24, 2024
A Target store in New York on March 4.Shelby Knowles / Bloomberg via Getty Images

Thanks to a revenue spike, Target is increasing incentives for salaried staff members, including leaders in stores and across supply networks.

The decision was made in response to $2 billion in extra profit growth anticipated in 2023, a company representative said on Thursday.

Target looks to double bonuses this year, Bloomberg News says | SaltWire
Target looks to double bonuses this year, Bloomberg News says | SaltWire

when falling for the most of 2023, Target’s shares rose in November when the business said it had cut expenses to combat a decline in consumer discretionary spending. The share price of Target has increased by 54% since mid-November.

A representative for the business verified that qualified Target workers got 100% of their 2023 incentives, as opposed to 50% the year before.

We’re compensating our staff appropriately,” the spokesman said.

According to the release, supply-chain operation executives and in-store managers will be among the recipients of the higher incentives.

Target Offering 4 Hours Of Pay, Free Lyft Rides To Team Members Who Get  Vaccinated Against COVID-19 - CBS Los Angeles
Target Offering 4 Hours Of Pay, Free Lyft Rides To Team Members Who Get Vaccinated Against COVID-19 – CBS Los Angeles

The news was initially reported by Bloomberg.

The increase in profits is a part of a general trend of higher earnings growth for businesses as worker productivity soars to all-time highs and inflation declines.

Stock indices closed at record highs on Thursday.

Hourly workers at Target are not eligible for the incentives; their starting salary is $15 per hour, with few exceptions (such as California), where it is $19.75. This contrasts with Walmart employees’ beginning hourly compensation of $14.

By Jennifer

FIELD REPORTER ON DPUNIV

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