More US companies using incentives to attract workers as they scramble for staff

Use of incentives increased across the country from late May to early July as employers struggled to find workers, according to the Federal Reserve Beige Book report released Wednesday.

“All districts noted an increased use of non-wage cash incentives to attract and retain workers,” according to the report.

The Cleveland Federal Reserve District reported more companies paying signing bonuses to keep up with competitors amid difficulty filling jobs. However, a manufacturer in the Dallas Federal Reserve District said a $500 signing bonus and $15 starting pay for untrained workers still wasn’t enough to bring in applicants.

Staffing firms in the Minneapolis Federal Reserve District reported strong job orders. However, companies face difficulty finding candidates with reports of virtual job fairs were seeing more employers than job seekers.

Companies in the Philadelphia Federal Reserve District noted the pandemic encouraged some early retirements. The district also reported the warehouse industry and the gig economy have created more labor market churn and less workplace loyalty.

Staffing firms in the Chicago Federal Reserve District and others pointed to child care challenges, retirements and financial support from the government as factors limiting labor supply.

Companies in several districts expected the difficulty finding workers to extend into the early fall.

Overall, the Beige Book noted labor demand was broad-based across the country but strongest for low-skilled positions. And while wages increased at a moderate pace on average, low-wage workers enjoyed above-average pay increases.

The original article can be found at: Staffing Industry Analysts