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Employers Hungry for Elusive Holiday Workers

Major retailers are once again gearing up for a big hiring spree this holiday season, but finding workers may prove to be as tough as it was in 2017.

Employers face an even tighter labor market this year, with unemployment just under 4%, and the additional expense of having to boost pay to ensure they have enough workers, CNBC reports, citing a new Korn Ferry study.

Nearly a quarter of retail merchants were unable to find enough temporary workers during last year's holiday season and this year is expected to be worse, according to Korn Ferry. The firm polled almost 20 major retailers in the U.S. with about one million workers.

"I guarantee you this issue has gotten bigger and bigger," says Craig Rowley, senior partner at Korn Ferry. "There are more jobs out there than there are people looking for them...It's a hustle to find the talent."

If employers are unable to find enough temporary workers, 63% say they plan on increasing hours for their full-time staff. Target and Kohl's are among retail giants that plan to boost their holiday staffs with the former seeking 120,000 workers, up 20% from 2017. The latter plans to hire 90,000, up from 69,000 two years earlier.

Retailers and HR staff from all industries are stepping up their recruiting game. Department store giant, Macy's, has hyped its "bonus potential" and McDonalds is trying to lure new hires with free meal offers, $50 in monthly Metro subway cards and "team celebrations," The Washington Post reports. Deloitte estimates a record $1.1 trillion in holiday sales.

"There is a definite war for talent," says Andrew Challenger, a vice president at Chicago-based Challenger, Gray & Christmas. "Just as we have this huge spike in consumer demand, retailers are dealing with [the] tightest labor market in 45 years. Whether or not retailers can hire enough people this holiday season could have a real impact on their sales."

The job placement firm forecasts that retailers will hire 700,000 workers for the holidays, a 5% increase from last season. One survey of 1,000 hourly employers by Arlington-based Snag, an online staffing platform, reveals that retailers are set to pay up to 54% higher for these workers versus just last year.

More brick-and-mortar retailers also are seeking seasonal workers to handle their growing online operations, The Chicago Tribune reports.

Macy's announced it would hire about 80,000, the same number of seasonal workers it initially said it would hire last year. Of that total, 23,500 will work out of the department store chain's fulfillment centers, focusing on online orders.

Last year, the number of fulfillment workers at Macy's was 18,000. Macy's also went past it initial hire target last year by 7,000.

The starting pay for seasonal hires at Target will be $12 per hour. A new incentive for this season means a randomly picked hourly worker at each of Target's stores and distribution centers will get a $500 gift card and will be able to make a $500 donation to a local community group of their choosing.

"As the marketplace becomes more competitive, the significant investment we're making in our team, including our increased minimum hourly wages, sets Target apart," says Stephanie Lundquist, Target's chief human resources officer.

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