Can we really have Christmas in July? As much as my kids Matthew and Amelia would love it, I think they know that the arrival of the Big Elf is still months away.
However, even though it’s the middle of summer, the country’s retailers are gearing up for the holiday hiring season, which typically starts in August. In past years, nearly 70% of retailers hired additional staff during the holidaysi. Last year, major retailers such as Target and Macy’s each hired upwards of 70,000 tempsii.
If the Department of Labor follows the reporting pattern of previous years, 2014 holiday seasonal hiring estimates will be released in the fall. Right now, we can look back to October, November and December 2013, when retailers added 801,100 jobs, the most since 1999iii.
Clearly, the numbers are vast.
With the economy being what it is, retailers’ budgets being tight and it being a buyers’ market for good talent, these seasonal hires don’t get paid a lot; they typically earn about $10iv an hour. This contributes to the reality that many jobseekers view these positions as commodity jobs. They don’t necessarily care where they work because it’s short-term and the pay is similar wherever they go. For employers, that means they can encounter difficulty finding the best talent.
To combat that challenge, here’s a potential solution: Offering temporary holiday workers voluntary benefits. Retailers may not be in a position to provide medical benefits or other traditional group employee benefits to seasonal hires, but voluntary benefits are a cost-effective way to differentiate an employer and gain the attention of prospective workers.
Unlike traditional healthcare benefits, these plans can be provided to part-time, full-time, or seasonal employees, as well as 1099 consultants. Employers can offer traditional voluntary benefits like life insurance, accident insurance and critical illness insurance. They can also include healthcare discount plans. These worksite products are not insurance plans, rather they provide access to quality and affordable medical, dental, vision and pharmacy care. Offering seasonal and part-time employees and consultants access to a Telemedicine plan, for example, is a great idea because it provides 24/7 access to a medical consultation with a licensed doctor 365 days per year. Telemedicine is especially helpful for employees who don’t have a major medical plan or may be enrolled in public or private plans with deductibles and co-pays.
Other non-traditional voluntary benefits that can be offered are legal plans, identity theft coverage, and pet insurance. Voluntary benefits are often completely portable, which is important to staffers who may leave after the holiday sales season.
In a competitive marketplace, voluntary benefits are a great way for companies to show they care, differentiate themselves from other employers, and attract the best talent. And in such a competitive retail environment, it may mean the difference between a happy holiday season and a Grinchy one.
i Richmond Times-Dispatch, “Snagajob Survey Shows Better Holiday Hiring Outlook, Sept. 2013
ii National Retail Federation, “Trends in Holiday Hiring: What’s in Store for 2013?” Oct. 2013
iii Challenger, Gray, and Christmas, Inc., “Retail Hiring Highest Since 1999,” 2013
iv U.S. Bureau of Labor Statistics
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