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Holiday hiring plans similar to last year’s but pay may decrease

September 18, 2015

Employers expect to hire a similar number of temporary workers this holiday season, but a survey found pay rates for these temporary employees may decrease.

The average expected pay rate for these workers is down more than two dollars from last year, according to a new survey by Snagajob, a job portal for hourly workers.

The survey found 82% of hiring managers plan to hire seasonal workers this holiday season, and employers look to fill most of their seasonal jobs by October.

Although most respondents, 65%, said they plan to recruit their seasonal employees by posting to online job boards and company career websites, 31% reported they plan to use a staffing agency. Sixty-seven percent of seasonal hires will be rehires who worked the same seasonal job in 2014.

“To compete in this tough labor market, employers are having to make hard decisions around raising wages to attract talent,” said Snagajob CEO Peter Harrison. “Our survey results around wages suggest that they are not quite ready to commit to this. In fact, many employers are instead highlighting their company culture and opportunity for growth within the organization as selling points to attract workers.”

The survey was conducted by Wakefield Research among 1,001 U.S. adults responsible for hiring seasonal and hourly employees, with a minimum of 100 interviews in the retail, restaurant and hospitality industries. It was conducted online between Aug. 24 and Sept. 3, 2015.

Several firms have announced seasonal hiring plans for the upcoming season:

  • UPS expects to hire between 90,000 and 95,000 seasonal employees this year — the same amount it planned to hire last year — to support the anticipated surge in package volume that begins in November and continues through January 2016. The full- and part-time seasonal positions are primarily package handlers, drivers and driver-helpers.
  • FedEx Corp. expects to add more than 55,000 seasonal workers throughout its network this holiday season, and many may have an opportunity to continue working with the company after the holidays, Mike Glenn, president and CEO FedEx Services, said in a conference call with investors to discuss first-quarter earnings. That’s up from 50,000 seasonal workers the Memphis, Tenn., company said it would hire last holiday season.
  • Wal-Mart Stores Inc. plans to hire 60,000 seasonal associates, the same as it planned last year. The retail behemoth said it will pay its seasonal workers a starting rate of at least $9 an hour starting rate of at least $9 an hour and that more than half of last year’s seasonal associates stayed with Walmart in a permanent role after the holidays.
  • Kohl’s Department Stores anticipates hiring more than 69,000 associates nationwide this holiday season, up from last year’s plans to hire 67,000 associates. This includes an average of 50 associates per store at its 1,166 stores in 49 states, as well as about 9,500 seasonal positions at distribution and e-commerce fulfillment centers nationwide and approximately 660 seasonal credit operations positions. Hiring has already started and most jobs will be filled by mid-November, according to Kohl’s.
  • Toys ‘R’ Us plans to hire 40,000 seasonal employees this holiday season at its stores and distribution centers nationwide, down from last year’s 45,000 additional seasonal employees.