Target Dangles Extra $2 an Hour in Holiday Pay Amid Labor Crunch

(Bloomberg) -- Target Corp. is offering its employees an extra $2 an hour to work during parts of the busy holiday shopping season, bolstering efforts to maintain staffing levels in a tight labor market. 

Store employees and some headquarters staff will get the extra pay on weekends from Nov. 20 through Dec. 19, as well as on Dec. 24 and 26, Target said Tuesday. Supply-chain workers can get the additional pay during a two-week period from Oct. 10 to Dec. 18, with the exact timing varying by location. 

The sweetened hourly compensation reflects Target’s efforts to rely more on its existing workforce as retailers, couriers and other service businesses step up efforts to attract and retain employees. Target is already offering an additional 5 million more hours to its employees during the holiday season, at a cost of more than $75 million. 

The company said last month it would scale back its seasonal hiring goal to 100,000, down from 130,000 last year, though it also plans to hire 30,000 workers for its U.S. supply-chain facilities. 

Target shares are up 28% this year, outpacing the 14% rise of the S&P 500 index.

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