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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It’s no secret that the COVID-19 pandemic has transformed the job market for good. Remote hiring, a shrinking labor force, and a lack of candidates are just a few of the big changes that are affecting companies all over the US.

You might be wondering how organizations are having a hard time finding candidates if unemployment is high. The causes of this are hard to understand, but by looking at Adecco partner businesses, we found some interesting answers.

Candidate Ghosting

When a candidate suddenly stops communicating at some point during the hiring process, this is called ghosting. Despite unemployment being high, candidate ghosting is a big problem for employers in 2021. This behavior among candidates has been on the rise for a few years, partly due to recruiters communicating poorly and having long hiring processes.

Since the job market started recovering at the end of 2020, ghosting appears to have become even more common. This could be due to candidates feeling reluctant to take jobs that require in-person work rather than remote roles. Government COVID-19 aid may also be impacting recruitment efforts, with a 50% increase in candidate ghosting and a 26% increase in first-day no-shows believed to be linked to the stimulus package.

With some households receiving up to $38,400 in aid, it’s easy to see why candidates aren’t in a rush to get back to work. As stimulus incentives expire, organizations may find it easier to recruit new people.

Why Wages Matter

To attract more applicants and keep candidates interested, companies will likely need to raise wages. The Adecco USA team worked with a well-known athletic apparel brand to improve their chances of finding and hiring the right people. By focusing on employee wages, they were able to get back on track with their recruitment needs.

Increasing hourly pay by $4 or $5.50 resulted in 261% more applicants, a 70% fill rate increase, and a 50% drop in early turnover.

As the pandemic continues and the future of the job market remains uncertain, employers should focus on raising wages and improving their hiring process. At Adecco, we’re experts at all of the above. To learn more about how we help businesses like yours thrive, click here!

The post The Battle for Candidates: Why Employers Are Struggling to Hire Talent In 2021 appeared first on Adecco Staffing, USA Blog.

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While most industries have managed to spring back into action despite the COVID-19 pandemic causing far-reaching disruption, the effects of social distancing and lockdowns are still seen in many sectors. The shipping and transportation sector was slowed down to a steady crawl in 2020 as social distancing and lockdowns hit, and as the industry has started to recover in 2021, demand for truck drivers is skyrocketing. Let’s dig into our insider scoop on the main factors that are driving this trend.

Why Is There Increased Demand for Truck Drivers?

There are several reasons for the sudden increase in demand for truck drivers across the country, and they all seem to be related to the COVID-19 pandemic. Here are a few of the main factors impacting the industry:

Licensing Roadblocks

Nationwide lockdowns have caused disruptions to the Commercial Driver’s Licensing process and wait times for licenses were extremely long in most cities. This means that the number of new truck drivers entering the job market dropped considerably in 2020.

Safety Factors

Safety has been the number one concern for most essential workers during the pandemic, and just like in other industries, the shipping and transportation sector has seen a sharp drop in available talent. New truck drivers are hesitant to enter the industry as they may be seeing it as a high-risk option compared to other industries that are mainly working from home.

Increased Job Openings

Although we may be entering an economic downturn, demand for truck drivers is booming due to growth in some sectors. The e-commerce industry, for example, has seen record-breaking growth over the last year, as has the demand for supermarket products like toilet paper and cleaning supplies. This goes hand in hand with the need to transport and deliver products, meaning that truck drivers are the foundation for the future of online sales and retail chains.

What Does This Mean for Truck Driver Wages?

The rising demand for truck drivers looks like it will continue through 2021. If employers are still struggling to find truck drivers, they’re likely to increase wages even further attract qualified talent that will in turn spur growth across a number of sectors. This could be a great time to become a truck driver or get back to driving if you already have experience!

The post Increased Demand Fueling Wage Increases for Truck Drivers appeared first on Adecco Staffing, USA Blog.

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The labor force in the United States is the powerful motor that drives economic growth and makes it possible for companies in different industries to hire a wide range of talent and continue innovating. The U.S. labor force participation rate has been steadily falling for about 20 years and will probably result in some big changes to the economy and the job landscape over the coming decade. Continue reading to learn why the labor force is shrinking, and what knock-on effect this will have on wages.

Why Is the Labor Force Shrinking in the U.S.?

The labor force is shrinking for a number of different reasons, one of them being the massive number of baby boomers who are retiring every year. In 2020 alone, 30 million baby boomers left the workforce for good, and industries could seriously struggle to replace so many employees at the same rate that they’re retiring.

COVID-19 has also caused a drastic reduction in the labor force participation rate. The U.S. Bureau of Labor Statistics estimates that about 6 million people have left the workforce since February 2020, making the drop in participation much more accelerated than predicted before the pandemic.

Other factors contributing to the decreasing labor supply are potential workers being unmotivated to look for employment, candidates being unable to find jobs that match their skills, and parents unable to work due to lack of affordable childcare. All of this is quickly lowering the number of people who make up the active workforce, and the U.S. is currently nearing the same levels of workforce participation as the 1960s.

What Effect Will This Have on Wages?

When millions of new positions are added to the job market every year and the number of available workers continues to fall, this creates an increased demand for professionals across different sectors. This in turn drives wages up, as employers compete with each other to attract the best talent to their organization. This trend has become more evident than ever during the pandemic, as wages for healthcare professionals soared due to short supply. This isn’t unique to healthcare! Advertised wages have risen by 16% since February of last year, including for truck drivers and forklift drivers.

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Minimum Wage Plans 

The federal minimum wage currently sits at $7.25 per hour – unchanged since 2009 despite the rapidly rising cost of living. As the nation begins to raise wages, states and even individual companies, including Adecco, are beginning to take matters into their own hands.

State Wage Increases 

The chart below indicates which states will increase their minimum wage rate in 2021 within their jurisdiction to edge closer to the impending $15 hourly proposal.

For the latest data, be sure to check out this minimum wage tracking tool from the Economic Policy Institute. 

How Companies Are Tackling Minimum Wage Increases 

Companies like Target have already raised their minimum wage to $15 per hour in July 2020, while others including Charter Communications currently have a minimum wage of $15 per hour and announced plans in April 2020 to raise their minimum wage to $20 per hour in 2022. Similarly, Facebook raised its minimum wage for contractors to $15 per hour in 2015. They also raised the minimum wage for contractors again in May 2019 to $20 per hour in the San Francisco Bay Area, New York City and Washington, D.C., and $18 per hour in Seattle. Adecco continues to monitor minimum wage requirements and recruit quality talent at competitive pay rates.

Effects on Americans 

According to the Economic Policy Institute, this increase would benefit a total of 33.5 million workers. To be more specific, the number of individuals that would see increased hourly wages include:  

• 30.1 million adults ages 20+
• 19.6 million full-time workers
• 19.5 million women
• 9.4 million parents
• 4.6 million single parents
• 6.2 million workers in poverty

Adecco’s Divisional Finance Director, Greg Ruby, describes how these changes will have significant impact within the hiring experience and positive effects on talent retention:

“A higher pay rate is more likely to influence the candidate to accept and start work. This decreases the time to fill, number of interviews, and turnover which leads to productivity increases on the customer side. This also keeps our customer’s workforce more intact. A higher pay rate keeps associates happy and working, and in turn, keeps their business more consistently performing.”

Greg Ruby

Adecco Divisional Finance Director

Adecco’s Approach 

Adecco is closely monitoring these changes to stay ahead of the wage updates and proactively guide our customers and associates on the latest changes. We are also constantly evaluating industry trends and competitive market rates to ensure that our associates wage needs are met. Our teams are also keeping a close eye on the further decisions regarding corporate tax rates as President-Elect Biden assumes office later this month.

Interested in following our updates? Be sure to check out our resources page for additional insights.  

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