How top companies are handling the holiday season

Following the trends of holidays past, today’s employers are preparing for another unique peak season.  

While some may argue that consumers are spending less, others are noting that consumers are beginning their holiday shopping sooner to spread out expenses.

Reports are coming in and predicting a drop in consumer spending for the end of 2023, but national retailers and employers are each taking different approaches to how they handle the forecasts.

Retailers can expect an increase in sales from 3.5 to 4.6% between November and January 2023, according to one recent Deloitte projection. In comparison, retailers saw a 7.6% increase in 2022, when inflation increased the value of retail sales.

Most retailers are saying they’re hiring fewer temporary workers than in previous years of the pandemic. Specifically, they’ll be hiring the lowest number since 2008, during the financial recession.

The Wall Street Journal is already noting that the logistics industry is taking hints from retailers and not making any big adjustments to their hiring plans.

Even with new data and predictions coming in, it’s still important to know what top employers and competitors are planning for the holiday season.

Walmart

Back in 2021, Walmart announced plans to hire 150,000 seasonal associates to keep up with the demand. Fast forward two years later, and the retail giant plans on hiring just 40,000 employees.

Target

Target is standing out from other retailers for not slimming down hiring this quarter. They’ll be implementing the same strategy as the year before, bringing on almost 100,000 workers for their holiday season, which begins this October.

Macy’s

The US retailer announced it would be looking for an additional 38,000 part-time and full-time workers. This falls well below the 76,000 Macy’s planned to recruit for 2021.

Amazon

The shipping giant is not just meeting 2021 and 2022. This year, it’s adding nearly 70% more workers. The additional 250,000 jobs might not be a surprise considering Amazon’s growing physical footprint, building 50 new fulfillment centers across the country.

UPS

In the wake of the delivery titan’s new contract agreement with the Teamsters union in August, UPS is sticking with plans past, bringing on 100,000 workers, including full-time, part-time, and seasonal.

This could be frustrating news for holiday job seekers. The slowdown is happening while searches for seasonal jobs jumped 33% over last year.

Retail workers still face challenges

Frontline workers have been very clear that they’re burned out.

They’re struggling with low pay, unreliable schedules, and difficult customers, and are looking for more opportunities for job growth (which in turn can provide them with higher pay and stability).

However, in the face of a potentially tough holiday season, employers can struggle to find the right balance of pay rates and profitability, especially when recruiting from the same pool of workers as larger national organizations.

To stay competitive and to retain great employees during a season when ”ghosting coasting” and turnover is a part of the norm, employers need access to the most up-to-date data and research.

There’s a reason one of Adecco’s top tools is the Salary Calculator. It lets our clients see the standard pay rates for jobs in their area and, as a result, allows them to make more informed wage decisions.

Peak hiring remains a challenge

Even during a predictable year, finding great talent can be difficult. However, our teams at Adecco are experienced at handling the ebbs and flows of business.

From identifying untapped talent pools in your area to implementing strategies to improve show rates, we know how to address the many challenges employers face during peak.

How do we help our clients be successful with peak season year-after-year? We take a customized approach to ramp planning and designing a solution that works for you. No two worksites or companies are the same – and neither should your hiring strategy be. Each client and location need a hiring plan based on the latest data and one that can evolve as needs change.

Contact us today to start talking how we can build a tailored staffing solution for you.