Minimum wages are set to increase in a record number of US states and municipalities in 2022. In several states, the increases are part of scheduled raises on the road to $15 per hour. Learn more about what to expect for the upcoming year and how it might impact our country’s current hiring shortage.

When exactly do the new minimum wage rises take effect?

The first minimum wage increase went live in New York state on December 31, but most took effect on the first of the new year. Be prepared for changes throughout 2022 though: Hourly minimum pay for all federal contract workers – including disabled workers – will hit $15 on January 30, thanks to an executive order from President Biden last April. Then starting in July, minimum wage raises will take effect in Connecticut (up $1 to $14) and Nevada and Oregon (up 75 cents to $9.50 and $13.50, respectively). And Floridian workers will see a $1 increase to $11 on September 30.

Where are the most significant raises?

Virginia saw the largest 2022 increase, with minimum wages up $1.50 to $11 per hour. California, a leader on workers’ rights, also tops the wages table, with a state-wide minimum of $15 per hour. (For employers with 25 employees or fewer, it’s $14 per hour.) Parts of New York state, including NYC, also implemented a $15 minimum wage (the state-wide minimum is $13.20; fast-food workers made at least $15 per hour since July last year, state-wide).

For the record, several cities have gone past the $15 mark already. Seattle has the highest city minimum wage ($17.27) for most employers ($17.53 in SeaTac, home to Seattle-Tacoma International Airport). It’s $15.87 in Denver, $15.55 in Flagstaff, Arizona, and $16.40 in Apple’s hometown of Cupertino, California. Washington DC’s minimum hourly rates will hit $16.10 this July.

What about tipped workers and other exemptions?

Exceptions to the federal minimum wage apply for workers with disabilities, workers under age 20, tipped workers, and student-learners. However, several states and municipalities are upping minimum wages for groups covered by federal exemptions.

At the same time, the federal government is eliminating the sub-minimum wage for tipped employees of federal contractors by 2024. In addition, as of January 30, the federal government is extending the $15 minimum wage to federal contract workers with disabilities. (Tens of thousands of disabled workers in the US earn below the minimum wage, with some paid as little as $3.34 per hour.)

Employers will have to navigate complexity to stay compliant with different hourly minimums for different workers, employer types, and locations.

We stay ahead.

Over a million workers in America still earn the federal minimum wage or less, yet inflation is at its highest level in nearly 40 years. And although many employers hiked pay to combat labor shortages (Target and Amazon have a $15-per-hour minimum rate; Walmart has $12), inflation-adjusted average hourly earnings still fell by 1.9% in November 2021.

In today’s market, it’s more important than ever to be smart about offering competitive wages. In our work with employers across the country, we consistently find that those with the most success in attracting and retaining talent are those who own the market in wage rates. Working with Adecco means working with experts experienced in navigating local markets. You also get access to invaluable resources like our cost of turnover calculator and optimized pay rate calculator.

Learn how Adecco helped a leading fashion brand optimize pay for 100% fill rates, a 44% rise in applications, and a 52% boost in the interview-to-hire ratio. And find out how we can help you improve retention, reduce absenteeism, enhance productivity, and boost workers’ health, morale, and effort.

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We’ve heard a lot about the labor crunch in recent months. But there’s another trend developing among America’s workforce. It’s called ghosting coasting, and it’s happening right now. Find out what it is, why people are doing it, and how employers can buck the trend.

What’s ghosting coasting?

There are over a million more positions open in America right now than workers looking to fill them. Increasingly, new hires are working for a few weeks and moving on to catch a better-paid job or the next sign-on incentive. That’s ‘ghosting coasting.’ The trend is especially prevalent in the service industry, but this year, it’s becoming a big problem in manufacturing and other sectors.

Why are people doing it?

Economists have pointed to ‘disincentives’ like expanded unemployment benefits. But there are deeper reasons. In the last 18 months, workers have turned themselves inside out looking after their careers and children at home. They often bore the brunt of the pandemic’s economic burden. Burnout is another factor: Workers are frustrated with what they consider low wages, poor benefits, and difficult working hours. In addition, store and restaurant workers face regular COVID-19 exposure and are often tasked with acting as mask-mandate enforcers.

What can employers do about it?

Avoiding ghosting coasting means getting creative (and honest) about how to recruit, reward, retain, and nurture talent. Here’s what you can do:

Level-up your value proposition

What can you offer your workers beyond paychecks? Reward the value they create by helping them thrive in life and their careers. You can offer valuable training and upskilling opportunities (for free via our Aspire Academy), so they’re working for you and for their future.

Beware bad hires

Backed into a corner, employers are hiring at warp speed. But don’t compromise the integrity of your hiring process. It’s still important to verify and prescreen each candidate, but you can also make sure that outdated internal policies don’t arbitrarily exclude well-qualified candidates, like those who have nontraditional work history or those with a criminal background.

Look after loyal workers

If you need to operate with a skeletal crew, adjust your operating hours accordingly. If you’re not already drafting temporary workers, start now. If you can afford it, consider closing for a day for some much-needed rest and to protect workers from burnout. Even, developing an organizational purpose can help your employees feel valued and motivated.

Shake up incentives

Attendance bonuses. Free food. Longer breaks. Employers need a toolbox of benefits to stay ahead of the curve in the war for talent. Go beyond gimmicks. As the pandemic continues, workers gravitate to employers genuinely invested in their well-being. You can add meaningful benefits and perks, like flexible shifts, daycare stipends, or transportation to and from work.

Get wages right

Our data shows that people are 60% more likely to return to work if the pay rate falls above the 75th percentile. Determining the right wages can be tricky without real-time market data and decades of experience in staffing. That’s why tools like our salary calculator can help you set the proper pay for the workers you need.

Our working world has changed. At Adecco, we can help you develop a tailor-made plan that makes sense for your budget and can be scaled up or down at any point.

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With the jobs market tighter than ever, it’s no secret that workers are demanding ever-higher salaries and benefits. Employers are tripping over themselves to sweeten incentives to lure new employees and retain existing ones. From McDonald’s paying candidates $50 just to show up for an interview, to JBC paying for college degrees for workers and their children.

After a year of financial turmoil, it’s not hard to see why. According to PwC’s employee financial wellness survey, 63% of American employees say that their financial stress has increased since the pandemic. Their household incomes have dropped, they struggle to pay monthly expenses, and they’re twice as likely to have used a payday loan or advance in the past year. Moreover, Bankrate’s Financial Security Index found that fewer than 4 in 10 US adults have enough savings to cover a four-figure emergency room visit or car repair. This struggle to make ends meet leaves employees stressed, distracted, or even absent from work. And – unsurprisingly – more prone to leaving.

Many employers face a limit on the financial perks they can offer, so we are stepping up to help them provide something that closely aligns with the realities of how employees spend their money: earned wage access.

On-demand pay benefits for workers

This innovative new payment tool, now offered by Adecco, allows employees to withdraw their tax-adjusted pay as they earn it. It helps us do right by workers: safeguarding them from predatory lenders and supporting their all-round financial well-being.

On-demand pay empowers workers, especially hourly or low income workers, with the tools to control their finances when emergencies or unexpected bills come up. Crucially, it isn’t a loan with interest rates for the employee. It just allows them to access a part of their wages before their official payday, which, for many workers, can be the difference between financial peace of mind and financial meltdown. Funds can be delivered by cash, card, or into a bank account with full transparency over real-time balances (Employees can even automatically direct money to rent and savings).

In this tough labor market, on-demand pay is a great differentiator for attraction and retention, enhancing the employer brand and culture. At Adecco, employees using our on-demand payroll solution have 14% better retention figures than the rest. Absenteeism stats have improved, too. And it’s all taken care of simply and cheaply, with our partner DailyPay managing all the processing and administration, ensuring compliance with payroll and taxation laws, across the US.

The bottom line? As the jobs market gets more competitive, making employers wait around until the end of the month to access money they’ve already earned just won’t cut it anymore. On-demand pay is one simple, low-cost, high yield solution that delivers for your business – and your employees.

Learn more about the staffing tools and solutions we offer employers, and see how we can make them work for your business, too.

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When the pandemic forced workers out of their offices and into their homes, younger workers – ‘digital natives’ with superior tech skills – seemed best-placed to cope. But over a year into the pandemic, younger workers report being more stressed, less productive, and more isolated: and they’re finding it more difficult to progress in their careers.  Unsurprisingly, they are also among the most likely to look forward to getting back into the office, at least for some of the time, post-pandemic.

More than half of the nation’s total population are now millennials, Gen Z or younger, so employers need to take urgent action to keep younger employees engaged. 

Here are three steps employers can take to help younger workers do their best work, whether they’re fully or hybrid remote:

1. Help them create a functional home office

One of the most basic but important things employers can do is make sure their workers have a decent home office set-up. When the pandemic first struck, many workers enjoyed the novelty of working on the sofa, at the coffee table, or even while propped up in bed. That soon subsided as home working dragged on, and workers found that those very conveniences, over time, were leading to crippling back pain.

Often younger workers don’t have the means to build an ergonomically safe home office without support from their employer. Our research shows the battle for good candidates has never been more competitive, so employers should consider providing – or at least helping to pay for – adjustable desks, chairs, and monitors for remote workers. Being comfortable at work can have a significant impact on productivity, this one should be an easy win for employers looking to keep younger employees throughout and beyond the pandemic.

2. Make sure employees have space to grow

According to Springtide Research, 86% of young people say it is important that their supervisors offer them opportunities to grow. Yet, many younger workers feel they are missing out on the chance encounters, watercooler conversations, and lunch meetings that helped their older colleagues build great workplace relationships or secure career-advancing opportunities back in their day.

Access to formal and informal training can support their growth (and improve employee retention, according to our recent white paper). Employers can help by making sure there are regular online and in-person opportunities for younger employees to feel connected to their immediate team, and to network and build meaningful connections across the company. That could be hosting informal, cameras-on virtual coffees or outdoor offsite events, or it can more operational such as increasing the frequency of team stand-up meetings. The important thing is to keep young workers connected, visible, and – most importantly – included. 

3. Look after their mental health

Over half of American workers have reported suffering from mental health issues since the Covid outbreak started. This ‘mental health pandemic’ is even worse among younger adults, who are more susceptible to financial stressors. While many are parents of young children, others in the younger cohorts are single and spend entire days alone at home, leaving them feeling isolated and unsupported.

So, what can employers do? The most important thing is to normalize talking about mental health issues and create safe online and in-person spaces for these conversations to happen. Employers should consider investing in paid-for access to mental health resources for their workers and encourage employees to use them without fear of stigma. Immediate supervisors play a crucial role here, as they can watch for any signs of psychological distress.

At the same time, leaders should role-model work-life balance and create a culture of ensuring adequate breaks and downtime, even when working from home. In addition, managers should invest serious time getting to know their young workers, especially if many have been onboarded remotely and missed out on the opportunity to build strong relationships with their team

For more insights from Adecco on how our working world is changing – and to learn more about keeping your workers included and engaged on the journey – why not join us for ‘Resetting Normal,’ an online panel discussion on September the 2nd at 8.30 ET? You can register for the event here.

At Adecco, we’re experts in helping employers like you navigate all aspects of today’s tricky employment and economic environment. To learn more about how we can help your business thrive, click here!

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Employers across the country are in a fierce fight to attract temporary workers. To make sure your job offers entice the candidates you need, you must appeal to their unique, individual needs. We take a look at the top-three drivers for today’s candidates – based on a recent staffing industry survey – and explain how you can build a winning package that resonates with your target temps.

#1. Pay rate

Across the board, pay remains the most important criteria for temporary workers, with a definitive 90% putting it among their top-three decision criteria. Of course, few employers can afford to raise pay rates continuously, but there are many creative ways to boost the financial appeal of job offers. Have you thought about offering employees instant access to wages? Or paying out an attendance bonus weekly (or even daily)? When it comes to base pay, our free, real-time 2021 payrate calculator can help you get your offer right the first time.

#2. Location

Nearly two-thirds of all respondents (63%) cited this, but there were big differences in the opinions of certain types of workers. Generally, the higher up a worker was on the pay scale, the less they tended to care about the location. (A trend that’s likely to continue as white-collar workers work remotely, post-Covid.) On the other hand, workers in occupations like production and healthcare were the most likely to care about location, perhaps because they don’t want to travel far for late-night or early morning shifts. This means employers must carefully target outreach for those jobs on a geographic basis. At Adecco, we go to great lengths to make sure the right workers see the right job ads – with the right messaging – from hosting localized in-person and online job events, to sophisticated geo-demographic targeting on social media. The result? More applies and faster fills for our clients.

#3. Working conditions/culture

Across the spectrum, 54% of workers – from knowledge workers to healthcare practitioners – put this in their top-three. Perhaps unsurprisingly in the current pandemic environment, production workers (59%) were the group who found this factor particularly important

We advise clients on tools and strategies to improve workplace safety, particularly during Covid. If you’re an employer, you should regularly ask yourself: Can we make this job cleaner, safer, and easier? Can we relieve our workers of tedious and strenuous tasks with increased automation and ergonomics controls? If you are committed to worker safety and a great workplace culture, the word will soon get out. You’ll find it easier to attract much-needed temp staffers and enhance employee retention along the way.

According to the SIA survey, the other most important criteria for temp workers included: ‘work/life balance’ (43%); ‘close skills match’ (34%); and training offered (9%), but – again – with big variations between worker groups.

So, in a nutshell, how can employers better appeal to temporary job candidates?

Employers can dramatically increase success rates when hiring in-demand temporary workers: Segment your target candidates into different demographic and occupational groups, and then tailor offers to align with their unique drivers.

For more Adecco insights on attracting temporary workers, read our article on holiday hiring, our two-part series on winning the battle for candidates, and our white paper on seasonal hiring. Visit our Employer Resources section for more helpful insights, and contact us if you have any staffing needs.

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The retail and consumer products industry has seen a large amount of change, especially within the last year due to the pandemic. There was already a huge shift happening from brick-and-mortar to online shopping and COVID-19 amplified that shift drastically.

Not to mention the increased production needs for certain items such as produce, hand sanitizer, cleaning products, and of course, masks. As we look ahead into 2021 and move forward into the future of this industry, let’s take a look at what’s “in-store”.

Looking Ahead into 2021

Diving into e-commerce and online shopping, let’s look at a few important excerpts from “The Future of Ecommerce Report 2021” by Shopify.

“E-commerce is at an all-time high. Lockdowns, travel bans, and retail closures forced the consumer online, and the world’s largest retailers soon followed, in some cases selling direct to consumer (DTC) for the first time. But not all e-commerce newcomers had the infrastructure in place to deliver a world-class customer experience.

One way DTC brands are standing out in a crowded e-commerce space is through automated shipping and fulfillment. Orders must have fast, free, and sustainable shipping. And the unboxing video phenomenon has caused DTC companies to invest in custom branded packaging.

To better compete with marketplaces and retail giants, brands are also investing in richer, more personalized experiences. Humanizing their brand also aids in customer retention, now a top priority as acquisition costs rise, along with uncertainty in digital advertising.”

In summary and looking ahead, the industry is continuing to evolve and change, and retailers are having to keep up in many ways including shipping processes, product variety, and packaging. Plus, retail marketing and advertising teams are reevaluating how they target consumers as many have changed their spending habits and are also working fully remote and/or online shopping.

Keeping Up with Amazon

On both the retail and consumer products topics, many small businesses and retailers are having to keep up with Amazon on numerous fronts including pay rates, production, shipping, and sales. With the spike in online shopping, demand has increased, and patience has lowered, causing many consumers to expect their products immediately. Not to mention, Amazon is turning old brick-and-mortar locations into fulfillment centers. According to this recent article by CNBC, between 2016 and 2019, Amazon converted around 25 shopping malls.

Meanwhile, retail businesses both small and large are still facing the heavy impact of the pandemic. Fortune reported that a record 12,200 U.S. stores closed in 2020 due to the pandemic and major shift to e-commerce.

“Early in the pandemic, some big retailers like Walmart, Costco, and Target, as well as drugstore chains CVS and Walgreens were deemed essential by authorities and allowed to stay open, giving them an edge over the likes of Macy’s, Kohl’s, Nordstrom, and Abercrombie & Fitch. While those companies have so far weathered the storm, the pressure pushed many wobbly retailers over the edge and led to a record number of bankruptcies in 2020. On Tuesday, S&P Global Market Intelligence said U.S. corporate bankruptcies reached a high last year of 603 companies, including 125 consumer goods and retail firms. That included J.C. Penney, J. Crew, and the parent companies of Ann Taylor and Men’s Wearhouse, among others, adding to the carnage.”

Needless to say, the retail market is continuing to evolve amidst this uncertain time and the mass need for online options. On the talent front, retail companies are having to get more competitive with pay rates as they’re competing for the same talent with large companies like Amazon. We recently stepped in to help one of our retail customers solve their pay rate challenges which delivered a substantial return on investment, learn more here.

Adecco’s Approach

Our team of staffing experts is dedicated to staying “in the know” with the latest updates for retail and consumer products including technology, trends, and strategies.

Adecco values the retail and consumer products industry and can rapidly source and hire candidates with the right experience, expertise, and passion, and place them directly to fill our customer’s needs. Learn more about our strategic solutions through this pay rate increase case study as well as our entire resources section. Our teams at Adecco are ready to solve your specialized retail needs.

Contact us today to see how we can help you hire the talent you need.

The post Staffing Trends within the Retail and Consumer Products Industry appeared first on Adecco Staffing, USA Blog.

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