Target Limits Eligibility for Benefits

Discussion
May 12, 2003
George Anderson

By George Anderson


Target has announced it will drop paid vacation and health care benefits for employees working 20 hours a week or less in its stores, says an Associated Press report.


The change in benefits will go into effect March 2004 according to the retailer.


Target spokeswoman Carolyn Brookter said the move was “a way to remain competitive in the industry and to make sure we can cover people with our future growth.”


Moderator’s Comment: What are your thoughts on Target’s
move to tighten eligibility for benefits?


We do not know what percentage of Target’s staff works
20 hours or less and participates in their full benefit package. That makes
it hard to say what affect this move will have on existing part-timers.


We would guess (and that’s all it is) the impact here
should be negligible. Those working 20 hours or less will have the option of
adding hours to retain eligibility.


It may have a slight affect on the retailer’s image with
prospective store associates. Benefits were a distinct point of difference for
Target in the job market. Only 12 percent of part-timers in retail have health
care benefits according to JOBS NOW. [George
Anderson – Moderator
]

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