The holiday season ushers in a whirlwind of heightened consumer demand and potential logistical challenges for retailers and distributors shipping packages. In 2022, USPS handled a staggering 13.2 billion mail pieces and packages.

To tackle this surge head-on, companies are turning to the hiring of temporary workers. These seasonal employees actively play a pivotal role in ensuring products reach consumers on time and in pristine condition. This article examines why companies hire temporary workers in the supply chain industry and how it benefits businesses and workers.

If you’re struggling with high turnover already, and the stress of the holiday rush is daunting. Head over to our article on 2023 Labor Issues to get tips on keeping your existing, permanent workers happy.

Meeting Seasonal Demand with Agile Staffing

Companies actively embrace the hiring of temporary workers during the holiday season to seamlessly manage the massive spike in consumer demand. As the year-end festivities draw near, orders for gift items, decorations, food, and more surge. Companies must address this sudden increase in demand with efficiency. Temporary workers help companies keep goods flowing by filling in short-term staffing gaps in the supply chain.

By hiring temporary workers for the holiday rush, companies gain flexibility in their workforce. They can scale up or down based on actual demand, sidestepping the need to maintain a large, year-round workforce.

This active flexibility empowers companies to optimize their labor costs while ensuring they possess the necessary manpower precisely when needed.

Reduction of Overtime Costs

Active hiring of temporary workers during the holiday season doesn’t just help companies reduce overtime costs for their permanent staff. Overtime can actively become expensive and lead to employee burnout. Companies can hire seasonal workers to handle more work and save money on labor. This helps permanent staff have a better work-life balance.

Enhancement of Customer Service

More than ever, the holiday season demands businesses to provide top-notch customer service. With a surge in orders and deliveries, it’s crucial to meet customer expectations regarding order accuracy, delivery speed, and product quality. Temporary workers contribute to maintaining high levels of customer satisfaction by ensuring that they process and ship orders promptly. This, in turn, minimizes errors and keeps customers satisfied.

Opportunities for Workers

While hiring temporary workers benefits companies, it also offers opportunities for individuals seeking short-term employment during the holiday season. Many people pursue temporary positions to earn extra income for holiday expenses. These jobs offer valuable work experience and could lead to permanent positions if the worker does well during their temporary time.

Strategies for Hiring (and Retaining) Temporary Workers in 2023

For 2023, USPS will hire an additional 10,000 seasonal employees, augmenting its workforce of 655,000 full and part-time workers. On Tuesday, Amazon made headlines when it announced its plans to employ 250,000 workers in the United States. If your company doesn’t require such extensive scaling, examining the strategies these industry giants employ to prepare for the holiday rush can offer valuable insights.

Here are some key strategies to consider:

Consider providing a robust benefits package and invest in career development opportunities. This may involve creating a clear path from temporary to permanent positions. It also involves ensuring the satisfaction of your regular employees during busy periods.

Use logistics staffing agencies to help with staffing and reduce pressure on HR teams in warehouses. These agencies have access to experienced workers well-versed in the specific needs of distribution centers, from drivers to pickers.

Moreover, they handle time-consuming tasks such as background checks, interviews, screenings, and selection processes. With their logistics expertise, they handle assignments, payroll, and ensure labor law compliance.

In addition to workforce strategies, investing in automation is another tactic employed by these industry leaders. Automation reduces the need for human labor and can efficiently handle a larger number of tasks. This is particularly beneficial during busy holiday periods or any other time. To determine whether automation is the right solution for your company, explore our range of solutions.

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