Fall is just around the corner. The season of pumpkin spice, football, fall color tours, and…The Amazon Factor?!
Yes, The Amazon Factor. Alliance Industrial Solutions president, Dave Bishop, coined that phrase two seasons ago during the peak season of Q4. Manufacturers are hitting their stride to wrap up and finish strong. Logistics companies and distribution centers are getting ready for the holiday season. Amazon is no exception.
The Amazon Factor kicks into high gear as early as the end of September when they raise hourly wages up by $4 – $8+ depending on the market and positions. For a company of their size, it’s a drop in the bucket. But for other companies? They lose some good people for the season when they decide to go work for the world’s largest online retailer instead.
To help combat this, a number of our clients implemented a “seasonal differential”, raising hourly wages by $2 – $6. Doing so resulted in the following:
- Employee retention. Did all employees stay? No. But a large majority of them did, which proves that when you treat your staff like they matter, they’ll stay.
- Met productivity goals. Because of the employee retention, production wasn’t impaired.
- Attracted new talent. The differential attracted new seasonal workers that would be downsized anyway when the peak rush was over.
- Saved time and money. Even by increasing pay for the busy season, clients still saved money because they were able to maximize productivity without the effort and cost of recruiting and onboarding to make up for lost workers, while minimizing overtime costs.
At Alliance, we’re here to assist with your warehouse staffing needs during every season and can help you stay ahead of the curve when it comes to battling The Amazon Factor. Contact us today to come up with a winning game plan.