Thursday, October 11, 2018
The battle for seasonal workers is on —
and many companies are willing to pay.
Companies that depend on holiday season sales will need more workers at a time when the ranks of the unemployed have dwindled to their lowest level since the recession.
Envisioning an even tougher struggle than in recent years, many are taking steps they’ve not tried before to recruit seasonal workers like offering higher pay, dangling bonuses and providing more full-time, rather than part-time, work. Some warehousing companies that fear they still won’t be able to fill enough jobs, are turning to automation.
Meanwhile, the U.S. job market is the tightest it’s been in five decades, consumer confidence is near an 18-year high and online shopping is surging.
“I can’t remember the last time it was this tight,” said Tony Lee, a vice president at the Society for Human Resource Management. “You are going to see a real battle for seasonal employees.”
At 3.7 percent, the unemployment rate is at a 49-year low, and the government says a record 6.9 million job openings are being advertised – more than the number of unemployed Americans.
With more job seekers able to choose, many companies have rushed to begin seasonal hiring earlier. Kohl’s, with its 1,100 stores, begain advertising seasonal jobs back in late June.
UPS is holding its first nationwide job fair next week. On Oct. 19, at 170 locations, applicants can have interviews on the spot, and driver candidates can schedule a road test. Dubbed “Brown Friday,” UPS hopes to hire up to 40,000 of the more than 100,000 workers it will need.
Target wants to hire 120,000 seasonal workers, 20 percent more than last year. The company raised its starting wage by a dollar to $12 an hour, and applications jumped 20 percent in the first week after it was announced compared with the same period last year, according to Angie Thompson, a Target spokeswoman.
The company is further raising its minimum wage, in stages, to $15 by 2020. Yet Amazon beat it to the punch last week, announcing it would boost its starting hourly wage to $15 on Nov. 1.
The company also said Wednesday that workers who already make $15 an hour will get more than the $1 an hour raise. The amount will differ by warehouse and affect a small amount of employees, but Amazon declined to say how many.
Amazon, the nation’s second-largest private employer after Walmart, says it wants to hire applicants quickly. Its online-job ads stress not what is required but what isn’t: “No resume. No interview.” Walmart plans to manage the holiday rush by providing more hours to its part-time workers, a step it implemented two years ago.
Indeed, retailers are posting far more full-time jobs compared with last year, and fewer part-time positions, according Indeed, a job-listing website.
With lesser resources, smaller retailers are struggling to keep up with the higher pay and greater perks.
Steve Fusek, who owns Fusek’s True Value Hardware in Indianapolis, says he had already found it a challenge to find workers who could reliably show up on time. Making matters worse, his store is just 10 miles from an Amazon warehouse and he expects to have to raise his starting hourly pay by a dollar or two from $10 to compete.
Radial, an e-commerce company based in King of Prussia, Pennsylvania that fills online orders for such retailers as Shoe Carnival, PetSmart and Kate Spade, has had to offer more perks than before. It wants to recruit more than 20,000 workers for its 22 distribution centers and five customer call centers.
Sean McCartney, an executive vice president, said Radial raised hourly pay for its holiday workers in four more markets than it did last year, though he wouldn’t say which ones. The company is also offering bonuses of $1,000 or more in the most competitive markets to those who work during the crucial “Black Friday” weekend after Thanksgiving.
That bonus is helping keep Linda Connor-Lewis happy about her job packing online orders at Radial’s warehouse in Louisville, Kentucky, even though her email inbox is stuffed with invitations to job fairs at rival companies. Though Connor-Lewis, 54, already has a permanent job with Radial, she plans to work 30 more hours of work a week on top of her current 40-hour schedule and expects to earn more in holiday bonuses than she did last year.
At XPO Logistics, a firm that specializes in shipping appliances, furniture, and other large items that Americans are increasingly willing to order online, plans are to hire 8,000 workers — one-third more than last year. XPO is also installing 5,000 robots in its warehouses in the United States and Europe.
“The combination of man plus machine is the best way to give our customers an edge,” said Bradley Jacobs, the company’s CEO.