Rush to hire holiday season workers close to fever pitch
Across the country, America’ s retailers and shipping companies are looking happily forward to a robust holiday shopping season. There’ s just one concern: Who will stock the shelves, pack the orders and ring up customers? The U.S. job market is the tight est it’ s been in five decades, consumer confidence is near an 18 year high and online shopping is surging. Companies that depend on holiday season sales need more workers at a time when the rank soft he unemployed have dwindled to their lowest level since the recession. Envisioning an even tough er struggle than they have had in recent years, many companies are taking steps they have not tried before. More of them are offering higher pay. They’ re holding national hiring days. They’ re dangling bonuses. They’ re 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 .“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, U.S. unemployment isa ta 49 year low, and the governments aysa record 6.9 million job openings are being advertised—more than the number of unemployed Americans. With more job seekers able to choose
among employers, many companies have rushed to begin their seasonal hiring earlier than before. Kohl’s, the nationwide discount chain, with 1,100 stores, tried to get a jump on its rivals by advertising seasonal jobs in late June.
“We are hiring seasonal associates earlier than ever,” said Ryan Festerling, Kohl’s head of human resources.
UPS will have its firstever nationwide job fair next week. In 170 locations, applicants can have interviews on the spot, and driver candidates can schedule a road test. The Atlanta company had been caught off guard last year when early holiday shipments swamped its network. On its jobfair day — which it’s dubbing “Brown Friday”— UPS hopes to hire up to 40,000 of the more than 100,000 seasonal workers it will need.
Sakeria Crawford, who will start a seasonal packagehandling job with UPS next month, will earn about $13 an hour — the most she’s ever made. Crawford, 24, who lives in Atlanta, hopes to stay on in a fulltime permanent job after the holidays. About onethird of UPS fulltime employees began as parttimers. Crawford is using the time before the job starts to line up day care for her son, 4, for whom she hopes the job will also mean a brighter Christmas.
“I’m very, very happy that I even have the opportunity,” Crawford said. “I need something stable.”
Target wants to hire 120,000 seasonal workers, 20 percent more than last year. The company has raised its starting wage by a dollar to $12 an hour, and is offering a new perk: It will randomly select one hourly worker at each store and distribution center to receive a $500 gift card and $500 donation to a local community organization of their choice.
Angie Thompson, a Target spokeswoman, said the higher wage and other inducements appear to be paying off. Applications jumped 20 percent in the first week after they were announced compared with the same period last year.
In 2017, Target raised its minimum hourly pay by $2, to $11, which it says helped produce 60 percent more applicants. The company is further raising its minimum wage, in stages, to $15 by2020.
Yet Amazon beat them to the punch just last week by announcing that it would boost its starting hourly wage to $15 on Nov. 1.
“It’s an investment in the future growth of the company and to ensure that we can continue to hire, retain, and develop the best talent for years to come,” said Dave Clark, Amazon’s senior vice president of worldwide operations.
Amazon, the nation’s secondlargest 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 résumé. No interview.”
Applicants who have an informal facetoface meeting at a hiring event and who match Amazon’s requirements can be offered a job on the spot.
With less resources, smaller retailers are struggling to keep up with the higher pay and greater perks. It definitely doesn’t help if a retailer has to compete with Amazon.
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. Now, even though Amazon’s jobs are more stressful and demanding, he expects to have to raise his starting hourly pay by a dollar or two from $10 to compete with Amazon.
“Whether they want to work there (Amazon) or not, that is the new norm,” Fusek said.
It’s an unusual shift. In the retail industry, the huge store chains used to be known for paying less, not more, than smaller competitors.
“It’s even tougher for them to compete when the big chains — which traditionally had paid the lowest minimum wage — are now paying more,” Lee said. “You’re going to see everyone forced to raise wages.”
Radial, an ecommerce company based in King of Prussia, Pa., says its most competitive markets are places where Amazon and UPS also have operations, as in Lexington, Ky., or Reno, Nev., where Amazon has a warehouse.
Radial, which fills online orders for such retailers as Shoe Carnival, PetSmart and Kate Spade, has had to offer more perks. 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.