Target says it would pay 100% college tuition and textbooks as a strategy to attract workers

Target on Wednesday announced new strategy to attract workers through a new educational program that will cover the full cost of undergraduate degrees at select schools. The company developed the program with Guild Education, a company that manages corporate education assistance programs.

The big-box retailer said the educational programs will kick off this fall, and it will cover the cost of tuition, fees, and textbooks for part-time and full-time workers who want to get an education. Target said it will also fund advanced degrees for post-graduate students, paying up to $10,000 each year for masters programs. The program is backed by more than 40 institutions including University of Arizona, Oregon State University, University of Denver and Morehouse College. Target plans to invest $200 million in the education program over the next 4 years. 

Target's employees at stores, distribution centers, and headquarters locations in the United States, will qualify on their first day. The company will cover the full costs for 250 programs related to its business such as information technology, computer science, business management. Employees are allowed to choose a different specialty, but Target will only pay part of the tuition — up to $5,250 for non-master's degrees and up to $10,000 for master's degree each year.

The labor market is becoming highly competitive as the economy rapidly recovers from the coronavirus pandemic. Many employers of labor have expressed their challenges of not having enough workers to match the amount of work that is on ground. Target is one of the few companies to attract job candidates with work benefits. It said in a release that the program "is the most comprehensive debt-free education assistance program available in the retail industry."

Other companies using similar strategy include Chipotle and Starbucks. Walmart also recently announced that it would now cover the full college tuition and books for its employees, after previously asking them to pay $1 per day.