With many people taking the summer off and kids out of school, the months are poised to be quite busy for business owners, particularly those whose companies are seasonal. So busy, in fact, management expects lots of temporary workers being hired to accommodate the uptick, a new poll reveals.
Over 90 percent of employers who pay workers on an hourly basis anticipate hiring more or the same number of temporary workers this year as they did in 2015, according to a recent survey by online job search destination Snagajob. That's up from 74 percent who indicated as much this time 12 months ago and 50 percent from 2014.
Many employers paying more
Additionally, many employers also intend to be a bit more generous in wages, hoping that by doing so they'll woo a larger pool of prospective hires. The survey found that employers, particularly those in the retail and hospitality sectors, intend to pay an hourly wage of $12.75, up from approximately $11.50 in 2015 and roughly $10.25 two years ago.
The uptick in wages comes on the heels of discussions in several states to raise the minimum wage. California Gov. Jerry Brown recently signed into law a bill that will raise the state's minimum wage to $15 per hour by 2022.
Peter Harrison, chief executive officer at Snagajob, said that the summer could be a challenging one for employers, mainly because the jobless rate has dipped so significantly, now averaging approximately 5 percent, according to the latest numbers from the U.S. Department of Labor. This means they likely won't have as many candidates to choose from.
"The employee candidate pool is rapidly shrinking," Harrison explained. "At the same time, the seasonal need for hourly workers has increased. Not only are hourly businesses vying for more employees, but they are also doing more to attract workers, including raising wages and increasing flexibility."
He added employers will need to map out a plan to draw the attention of people who are looking for temporary work. Doing so will allow them to stay competitive.
Temporary employment up in March
Even though temporary employment usually reaches its peak in summer and early winter, in light of the holiday season, it's already shown growth. In March, for instance, employers added a seasonally adjusted 4,000 temporary help services positions to the U.S. economy, according to the U.S. Bureau of Labor Statistics.
Furthermore, the labor force participation rate has notched higher, after several years of being at record lows. At 63 percent in March, it's the highest participation rate since 2014, Staffing Industry Analysts noted.
Employee benefits also serve as an incentive to attract temporary hires. Since the Affordable Care Act, these benefits are actually required to be offered among some companies, depending on their size and how many people they employ. The ACA requires employers with 50 or more full-time workers to provide health plan coverage.
As for the most common rewards and perks employers offer to workers, flexible shifts, mentorship opportunities and higher wages top them all, the Snagajob survey showed.
