Companies are rolling out perks at a feverish clip to lure employees.
Why it matters: The economy is roaring back. Companies are pulling out all stops to win over the workers they need to meet demand.
What’s happening: Walmart and Target say they will pay tuition for certain college programs for millions of employees.
- Businesses are also offering extended time off, free Pelotons or one-time bonuses to attract workers — and keep the ones they have.
Yes, but: What’s actually enticing workers is the most old-fashioned perk: higher wages.
- “After we made our announcement [to raise pay] back in April, we’re getting close to full staffing levels,” McDonald’s CEO Chris Kempczinski told investors.
The intrigue: Nearly 2 in 3 workers say they are looking for a new job, per a new survey by PwC. Employees said more money was the top reason they considered quitting.
- The survey also finds a huge gulf between what employees want and what companies are offering.
- Touting company values and culture, plus offering location flexibility, are the most common ways employers say they are trying to retain and attract workers.
- But that’s on the bottom of the priority list for employees. At the top: more flexible schedules, higher pay and expanded benefits.
By the numbers: Employers are meeting the moment by steadily raising wages. In July, pay was 4% higher than this time last year.
- Wages in the hospitality sector — where worker shortage complaints are most acute — are 10% higher from last July as hiring rebounds.
