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Thought Leaders: John Mulligan, Vice President, Pay & Benefits, Target Corporation
In 1962, the first Target store opened in Roseville, Minn., bringing a new face to discount merchandising. In 1974, Target introduced “plan-o-gram” blueprints for uniform layout and intuitive navigation across the chain of stores. In 1985, the weekly Target ad was the most-read newspaper insert after the Sunday comics.
Target Corporation has always been a leader when it comes to innovation in the retail environment; but over the years, the company’s innovative approach has extended to its health and benefits strategies. Just as Target customers “expect more” from each and every interaction with the Target brand, Target’s team members “expect more” as valued employees of this progressive organization. John Mulligan, Target Corporation’s vice president of Pay & Benefits, recently sat down with hub to discuss what “innovation” means to Target and how the company channels its inventive ways to drive positive change in health care. Q: Delivering everything from clothes and groceries to household goods and pet supplies to your consumers, why is innovation so important to Target?
A: Innovation is key to our continued success because it helps us deliver new “expect more” moments to our guests and team members. We strive to continually surprise and delight our guests. Great product design is smart, functional and inspirational. At Target, we make great design affordable.
Target believes that great design is more than aesthetics and style; it’s about promoting creativity and innovation that leads to extraordinary products, processes and experiences. Great design should help improve lives. That’s why design is the foundation that inspires everything at Target, including providing access to stylish products, in-store experiences and community partnerships.
Q: How does Target balance innovation and high quality with affordability for its consumers?
A: At Target, value is about more than low prices – it’s about trend-right merchandise with the everyday basics, a unique shopping experience and a commitment to the community.
Our innovation and high quality extends to our affordable health and wellness solutions for both guests and team members. Target Clinics provide quick access to quality care at a low cost for certain health issues; uses evidence-based treatment protocols; and utilizes an electronic medical record system to foster fast, safe and accurate sharing of patient records.
Also, Target developed innovative ClearRx prescription drug packaging that includes easy-to-read labels and color-coated rings personalized for each family member, helping to eliminate medication mishaps. Target provides additional value by offering many generic drugs for $4, and is making it easier to use Flexible Spending Account dollars by identifying on sales receipts items covered under this plan.
Q: With nearly 360,000 team members across more than 1,600 stores, what have you learned about what your employees expect from their benefits plan?
A: We know our team members are savvy consumers. They want robust benefits that are affordable. We have learned that we must continually re-evaluate our plans to verify we are offering benefits that provide value, meet the needs of our team members and are consistent across all our locations. We are committed to providing high-quality benefits to attract and retain the best talent to continue Target’s success.
Our approach to benefits encompasses physical, emotional and financial well-being. And, similar to the services we provide our guests, Target offers a number of tools and resources to help inform our team members about the benefits plans and programs available to them. These include:
Q: How has the consumerism movement in health care shaped Target’s benefits strategy over the past few years?
A: In 2006, we introduced the option of account-based health plans as part of our long-term strategy to help team members manage health care costs now and in the future. These plans engage our team members in a decision-making process that gives them greater ownership and control of their health care dollars.
We’ve seen, and national research supports, that team members make more cost-conscious decisions when they participate in a consumer-based plan. Along with a traditional copayment plan and HMOs, our account-based plans offer a variety of coverage and deductible levels. Before team members enroll, they access information and tools, including online cost estimators that help them think about and estimate potential costs over a period in time. We also offer team members resources that help them gather information on specific health services and prescription drug costs, and information that helps them choose the plan that best meets their needs, and makes best use of their health care dollars.
Q: There has been much discussion about the “retailization” of health care as we progress to a more consumer-centric model. As one of the nation’s leading retailers, how would Target define “retailization” of health care; and what changes would that mean to how health care is delivered and consumed?
A: Target’s goal is to make getting and staying healthy easier for guests and team members. Health is personal, and the concept of “retailization” means there is no single solution to health care delivery. For us, it all comes back to innovation – Target engages in a variety of innovative programs that inform and inspire wellness.
We tailor our products and services to meet the needs of team members and guests. Target is a one-stop shop for all health and wellness needs. We care about health – providing health care, healthful food alternatives, and exercise and fitness products. We also provide access to the information and tools necessary to make better purchasing decisions.
Research shows that when people have a personal financial stake in their health care, they make more informed decisions. We know one size does not fit all – so we continue to offer choice in our team member health care plans and coverage options.
Q: How does Target tackle the health care affordability needs of its employees? What challenges do you face when providing benefits for this diverse workforce? A: We face persistent challenges while providing benefits for our diverse team member population, including plan coverage, access and communications. Target strives to provide health care benefits that help our team members maintain and improve their health while managing health care costs for both our team members and the company. We are focused on promoting wellness, prevention and treatment programs that are intended to make getting and staying healthy easier for all team members and their families. We want to help all team members achieve their health goals – whether they are covered by a Target-sponsored health care plan or not. For example, in 2009 we are offering all team members access to a 24-hour NurseLine, a health risk assessment and an online health portal. For team members covered under our health plans, we offer healthy pregnancy programs; and 100 percent coverage for preventive and well-baby care programs that include immunizations and cancer screening, health assessments, health coaches, and more.
We continually review our health care plans to ensure they provide our team members with the best value. For instance, three of our four national health plan options provide company contributions to a health care account. If team members do not use the contributions, they roll over for future use.
Q: What type of innovation does Target think will be needed within health care to advance the industry forward and simplify how consumers use, and interact with, their health care?
A: Target supports the Department of Health and Human Services’ Transparency Initiative to create a health care cost and quality database for consumers, improve information technology standards in health care, and reward customers who shop for value by comparing quality and price. Target is a member of the National Business Group on Health and the American Benefits Council; and continues to evaluate additional roles in the public sector to support consumerism and initiatives that drive price, provide quality measurement, further facilitate cost transparency, and support health information technology.
With nearly 360,000 Target team members, we realize we can make a small dent in the health care system just by fostering consumerism in our own organization. We are focused on education that helps our team members take charge of their health and navigate the system. We strive to demonstrate the value of being real consumers of health care, just as team members are consumers in other aspects of their lives. We work with our vendors to provide the best tools and resources, and develop our wellness benefits for team members.
For Target guests, we have a multiyear strategy in place to make family health easier. We are focused on consumer-friendly solutions for wellness and treatment, reinforcing evidence- based medicine in our Target Clinics, and continuing the creative innovation that has yielded numerous past awards for ClearRx and our safety programs. |
