Businesses are using signing bonuses and other incentives to draw new workers.
According to a report from AnnElizabeth Konkel — a labor market economist at job listing company Indeed — employers in the United States are offering one-time perks to attract new applicants as enhanced federal unemployment insurance expires in many states.
As the company details:
One avenue some are pursuing is to offer hiring incentives, such as hefty signing bonuses, retention bonuses, or one-time cash payments on being hired.
When advertised in job postings, these incentives can quickly get jobseekers’ attention. And the share of job seeker searches for bonuses has steadily climbed since mid-spring. But incentives are also attractive to employers because they are a one-time cost that doesn’t require increasing wages or paid time off for all employees.
The number of job postings on Indeed’s platform with hiring incentives climbed to 4.1% —more than double the percentage with incentives listed at the end of June 2020. Indeed states that some job postings explicitly mention that federal unemployment benefits — which were passed under the American Rescue Plan in March — are ending soon, while others are offering COVID-19 vaccination bonuses.
Incentives have risen most over the past six months in the driving, personal care and home health, and childcare sectors.- READ MORE
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