Dive Brief:

• UPS package handlers hired in 2017 are eligible for a $150 per week retention bonus, Louisville Business First reported last week. Only employees hired for the company's Second-Day Air operation or after March 13 to work in the Ohio Valley District ground operation are eligible.
• The bonus jumps to $200 this fall for workers brought on board for the holiday rush on or after Oct. 1 to run the UPS Next-Day Air operation. No scheduled work days may be missed to qualify for the $200 bonus.
• Poaching of workers from other warehouses has become common, The Wall Street Journal reports. While some staffers choose to remain put, others eagerly embrace the opportunity to get a raise by jumping ship.

Dive Insight:

UPS' bonus plan is likely a reaction to the current worker's market in Louisville where Radial, an e-commerce company out of Pennsylvania, seeks to hire 3,750 holiday workers at its fulfillment centers in Louisville and Shepherdsville. Radial also wants another 4,100 additional workers for its other two fulfillment centers in Northern Kentucky. By offering a bonus, UPS may draw warehouse workers away from other companies to meet its needs.

As evidenced by the healthy bonuses offered to UPS staff who remain on the job through the holidays, worker shortages have expanded beyond manufacturing and into warehouses and distribution centers. The five-month advance in employee recruitment planning also reveals just how far the dearth of workers reaches into the logistics company's ability to perform, a fact that employment naysayers and those fearful of robot job thieves might consider.

According to Zip Recruiter, an online job search engine, warehouse worker jobs range from $9 to $18 per hour, and most include not only health benefits but also 401k options. Many current positions cite "Immediate Need" and postings are labeled "New!". Almost a dozen cities are listed as top destinations for warehouse need, including Dallas, Denver, Portland and Houston. The most popular states for warehouse jobs are California, Texas, Ohio and Pennsylvania. Interestingly, even government employment websites offer nearly a dozen or more pages of available warehouse positions.

Wages have risen accordingly. In 2016, the average was $13.81/hour. Since then, in cities like Cincinnati wages have increased 19% to a $14.41/hour average. Los Angeles has seen a 15% rise to $14.45/hour. The demand for warehouse workers is pushing wages up, so for those seeking employment, warehouse work is shaping up to be a pretty good gig.