Target’s salaried employees eligible for bonuses will receive only 87% of their potential bonus for fiscal year 2024, a notable drop from the full 100% paid out in FY 2023. The reduction is based on total-year financial performance, as confirmed by a company spokesperson.
In its March 4 earnings report for FY 2024, Target revealed that net sales had declined, despite an increase in year-over-year comparative sales. Analysts noted that the company faces mounting competitive pressures and risks heading into 2025. Target also warned of potential profit challenges in early 2025, citing tariff uncertainty as a key factor influencing its cautious outlook.
The company emphasized that bonuses were determined solely by FY 2024 financial performance. However, Target has undergone significant shifts in recent months, including leadership changes and strategic adjustments. At the start of the year, new executives stepped in to replace one retiring and another departing leader. Additionally, Target made headlines in January when it ended certain diversity, equity, and inclusion (DEI) initiatives, citing an evolving external landscape.
Among the changes, Target concluded its three-year DEI goals and Racial Equity Action and Change initiatives, as stated in a company blog post. The retailer also ceased participating in third-party diversity surveys, such as the Human Rights Campaign’s Corporate Equality Index.
Looking ahead, experts predict that salaries will remain stable in 2025, but tighter budgets may push employers to focus more on performance-based compensation, including bonuses. Compensation strategies could play a crucial role in employee retention, particularly after high turnover in 2024. According to a December report from ZipRecruiter, pay remains a key factor in workforce stability as companies navigate economic uncertainty and evolving market conditions.
