Based on our own internal data, both direct hire and temporary job growth for industrial truck operators in distribution centers has nearly doubled in some key markets, and hourly pay rates have risen as much as 50%. Furthermore, Indeed recently saw a 6% spike in forklift operator job postings spread out across the country. With package delivery booming, the hiring companies expect certified, safety-minded candidates to fill these roles.

New Collaboration

That’s why the Adecco Group Foundation US partnered with our client—a luxury home goods brand—to invest in innovative forklift training. The client had a high demand for forklift drivers and high expectations for their performance. And the candidates had a strong desire for advanced training in order to feel confident as they started their new careers. It made perfect sense to combine our own training acumen with the virtual reality experience.

New Training

Speaking of virtual reality, what a way to train people! Not only is it engaging and enjoyable, it provides a very real—yet not quite real—environment. The client’s Adecco associates sat in a real forklift and used the controls to conduct all sorts of maneuvers in a virtual warehouse. They familiarized themselves with the machine’s nuances and safety measures. And a Raymond employee was on hand the entire time to answer questions and ensure the technology ran smoothly.

Learn more about the training and listen to the impact it made by watching our mini documentary.

New Impact

The associates gained confidence, ramped up quickly, appreciated the investment in their development, increased their earning potential, and added a new Occupational Safety and Health Administration (OSHA) certification to their resumes. The client increased early retention, maintained productivity, improved inventory management efficiencies, and enhanced workplace safety. A true win-win.

“Totally, it helped me out… it got me ready for the job. The main key is safety. I feel like I’m ready and I can operate a forklift.”

-Armando, Adecco Associate

“I definitely see the excitement in my associates. Being able to tell them that they’ve been hand selected from their leadership (for this training)… it was pretty awesome to see their reactions.”

-Cynthia, Onsite Supervisor at Adecco

It’s success stories like these that continue to push the Foundation forward. Whether it’s certifying forklift drivers, assisting athletes with career transitions, or helping veterans enter the civilian workforce, the march continues on.

Get in touch with your local Adecco team to discuss custom training, onboarding, and HR solutions for your unique workforce needs.

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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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The post As the Labor Force Shrinks, Wages Increase appeared first on Paragon Strategic Staffing.

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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The post Upcoming Minimum Wage Changes and How They Could Impact Your Business appeared first on Paragon Strategic Staffing.