Retailers this year anticipate paying seasonal workers an averageof $13.70 an hour, a 54 percent jump from expected pay of $8.90last year. (Photo: Shutterstock)

The labor crunch is only going to get worse asThanksgiving and Christmas loom, and restaurants and retailersacross the U.S. are tossing out perks to fill their workforce holesbefore the holiday rush.

In the Washington D.C. area, cooks at Clyde's Restaurant Groupeateries can now clock out, grab a seat at the bar and get a25-percent discount on oysters and wine. The company added the perkthis year to draw and retain staff.

“It's helping because it's a fight for employees out there,”Chief Operating Officer John McDonnell says. The company, whichemploys about 2,000, was still looking last month for more than 100hourly workers—mostly servers at its full-service restaurants. Withthe holidays coming, “you just need to ramp up, you need morepeople,” he says.

Related: Benefit costs less of a priority as employerscompete for talent

Fast-food chains are also trying to staff up. A Wendy's Co.restaurant in New Hampshire is offering $1,000 hiring bonuses, andDunkin' Brands Group Inc. says finding employees is becoming evenmore competitive for franchisees as other companies add staff tocarry them through the busy last two months of the year.

“Everybody is fighting for talent.”

Labor is “something that weighs on our minds,” says Dunkin'Brands Chief Executive Officer David Hoffmann. “As we get into theholiday season it's just going to get exaggerated because everybodyis fighting for talent.”

In October, Wendy's franchisee Hamra Enterprises beganadvertising $1,000 bonuses to lure hourly workers at a location inPortsmouth, New Hampshire, that's within walking distance of a HomeDepot, Bed Bath & Beyond and more eateries. While it's helping,the store still needs 12 to 15 more people, says regional directorof operations Trent Colford Sr.

“It's just the situation” and it may worsen as area employersramp up recruiting efforts, he says. “There are more jobs availablethan the people to work them.”

Companies are on track to hire the most workers ever for theholidays, according to Challenger, Gray & Christmas Inc. In aNov. 1 report, the consulting firm says U.S. companies are seekingto fill 714,000 jobs, topping the previous record set in 2014.Amazon.com Inc. is making it difficult for retailers with storesclose to Amazon fulfillment centers, since the e-commerce giant islooking to hire more than 100,000 seasonal employees and will pay$15 an hour. Within 48 hours of the announcement, the company saysit got 70,000 applications.

With the unemployment rate at a 48-year low, the staffing battlemay escalate into all-out war. Retailers this year anticipatepaying seasonal workers an average of $13.70 an hour, a 54 percentjump from expected pay of $8.90 last year, according to Snag, anonline company that connects hourly workers with jobs in retail andrestaurants.

“This is an incredibly challenging holiday season—perhaps thehardest holiday season in decades,” says Fabio Rosati, chiefexecutive officer of Snag. “Unemployment is low, companies likeAmazon are hiring in direct competition with traditional retailers,and there's also the gig economy.”

That labor market is based on freelance and short-termcontracts. The emergence of ride-hailing companies Uber and Lyfthas let job seekers work on their own schedules when they're free.So, as retail and restaurant candidates become more selective,employers are testing new incentives, including gift cards, cashbonuses and even Florida vacations.

Target Corp. is hiring 120,000 for the holidays, 20 percent morethan last year, and bumped the hourly wage to $12, up a dollar from2017. The company is holding drawings for $500 gift cards. AtKohl's Corp., employees get a 35 percent discount during a selectfew days during the holidays, up from the regular 15-percent,though the company offers 35 percent discounts periodically duringthe year as well.

At the other end of the spectrum is Walmart Inc., which isn'tthrowing out more perks to employees during the holidays. Despitethe extremely tight labor market, workers will receive exactly thesame offer of the past two years when they leave their Thanksgivingtables to work: a free dinner and 25 percent off one basket ofitems to take home.

Macy's Inc., which is hiring 80,000 workers for the holidays,started a bonus plan this year. Full-time, part-time and seasonalemployees can earn extra cash each quarter based on performance atthe retail giant.

At J.C. Penney Corp, eight employees will be randomly picked tochoose prize packages that include free trips to New York, Miami orBanff, Canada. Hourly and seasonal workers who stay with companythrough Dec. 29 are eligible. The retailer, which planned to hiremore than 39,000 seasonal staff, says it's offering the rewards “toattract and retain associates” during the holidays.

Incentives aside, a prolonged dearth in staffing beyond theholidays could weigh on the economy, says Andrew Challenger, vicepresident of Challenger, Gray & Christmas.

“Employers are trying to attract and fight for people in any waythey can,” he says. “We might see a slowdown in growth at somepoint if companies can't get enough workers in the door.”

More ways to sweeten your benefitspot:

• What “total rewards” areas are employers focusingon to recruit top talent?
• 8 ways to make your benefits stand out from thepack
• 10 industries with the best benefitspackages

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