Target’s education benefit results in lower hourly employee turnover

Target’s tuition-free education benefit is paying off for employees — and the retailer.

The discounter said that its Dream To Be educational assistance benefit, which it launched in 2021 and includes tuition-free access to formal education and skilling, has helped to fuel career growth and strengthen its team. An 18-month study found that turnover was more than 70% lower among hourly Target employees enrolled in Dream to Be programs. (The study was conducted by Target’s education parter, Guild.)

In addition, the number of promotions was more than three times higher compared to those not enrolled in a Dream to Be program, according to the study.

Under the education benefit, U.S.-based full-time and part-time Target employees are eligible — from day one on the job — to pursue tuition-free undergraduate and associate degrees, certificates and bootcamp programs from over 40 colleges, universities and learning providers through Guild (formerly known as Guild Education). Ninety-percent of the participating employees are frontline employees, “furthering our aim to promote access to education,” Target said.

The program offers a wide range of topics for study, from design to communications to engineering and more. Business, tech and language-learning courses have been most popular.

“Investing in this benefit helps Target support our team and create a more equitable and inclusive workforce and gives team members the chance to grow their skills and explore new career paths,” the retailer stated.

Target noted that, as the program evolves, it has make some updates, including expanding the catalog to include four historically Black colleges and universities, and awarding college credit for select Target training programs. It also has added Spanish and French language learning programs in addition to English.

When Target launched its educational assistance benefit in 2021, it described the program as “the most comprehensive debt-free education assistance program available in the retail industry.” 

Based in Denver, Guild (formerly Guild Education) helps employers provide tuition-free education, skilling and career mobility to their workforce.