MNI: Staffing Tactics Differ This Holiday Season

--Target Raising Minimum Hourly Wage to $11 

--Target Commits To $15/Hr Min By End 2020

By Vicki Schmelzer

     NEW YORK (MNI) - U.S. retail firms and delivery services are trying

different tactics this year to assure adequate staffing for the coming holiday

season. 

     On Monday, Target Corporation announced that it would raise the minimum

hourly wage for all its workers by $1 to $11 per hour beginning in October. 

     Target committed also to raising the minimum hourly wage to $15 by the end

of 2020. 

     "By moving to an $11 minimum hourly wage this fall, Target will provide pay

increases to thousands of team members across the country before the holiday

season," the firm said in a statement.

     "This increase will also apply to the more than 100,000 hourly team members

that Target is hiring for the holiday season," Target said. 

     Target noted that the last major wage increase was seen in 2016, when the

firm moved to a $10 per hour wage. 

     "A minimum hourly wage of $11 is higher than the minimum wage in 48 states,

and matches the minimum wage in Massachusetts and Washington," the firm said.

     Instead of temporary hires for the 2017 holiday season, Walmart is, for a

second year, offering extra hours to current workers. 

     "To help customers save time and money this season, we are offering the

extra hours available this time of year to our current associates rather than

hiring thousands of seasonal workers," said Judith McKenna, executive vice

president and chief operating office, Walmart U.S. in a recent statement. 

     "These extra hours will help staff traditional roles like cashier and

stocker, and newly created technology-empowered positions such as personal

shoppers and Pickup associates," McKenna said. 

     In prior years, from 2012 to 2015, Walmart had brought on between 50,000

and 60,000 temporary workers during the holidays. 

     Walmart raised its minimum wage to $9 per hour in 2015 and then to $10 per

hour in 2016.  The average full-time hourly wage is $13.38 per hour and average

part time hourly wage $10.58, the firm has said.  

     Last week, Macy's announced plans to hire roughly 80,000 "seasonal

associates" to work "at its Macy's and Bloomingdale's stores call centers,

distribution centers and online fulfillment centers nationwide for the 2017

Christmas and holiday season."

     This compared to 83,000 during the 2016 holiday season. 

     In September, UPS announced plans to hire 95,000 seasonal employees "to

support the anticipated increase in package volume that will begin in November

and continue through January 2018."

     In the past three years, "35% of the people UPS hired for seasonal package

handler jobs were later hired in a permanent position when the holidays were

over," the firm added. 

     A FedEx representative told MNI that the firm is "increasing hours for some

existing employees and increasing the workforce with seasonal positions as

needed to maintain outstanding service during the peak holiday season."

     "FedEx expects to add more than 50,000 positions leading up to the holiday

season, with the majority of these within the FedEx Ground network," FedEx said.

--MNI New York Bureau; tel: +1 212-669-6438; email: vicki.schmelzer@marketnews.com

[TOPICS: MAUDS$,M$U$$$]