Companies offer sign-on bonuses to recruit employees

Despite signs that the economy is slowing, employers across Ohio are continuing to offer hiring bonuses to get workers in the door amid an ongoing labor shortage.

Nearly half of businesses surveyed by the National Federation of Independent Businesses (NFIB) are increasing compensation, with another quarter planning to do so in the next three months, said Chris Ferruso, Ohio legislative director for the NFIB.

The number of businesses planning to increase their payroll this season is just one point behind the historic high.

Despite pay increases, 92% of NFIB's members reported they have "few to zero qualified applicants."

"Over half of them have unfulfilled job openings, which is a 48-year high," Ferruso said.

Employers posted 11.3 million job openings at the end of May, the Labor Department said Wednesday, down from nearly 11.7 million in April. Job openings reached 11.9 million in March, the highest level on records dating back more than 20 years. There are nearly two job openings for every unemployed person.

"I think we're seeing the labor participation rate get back to what it was pre-pandemic, but there's still quite a shortage of labor," said Kevin Boehner, director of small business and workforce policy at the Ohio Chamber of Commerce.

Employers are being creative with their benefits, too, going beyond monetary perks with childcare resources, flexible schedules, tuition reimbursement and more.

Columbus-area Verizon stores, for example, are offering sign-on bonuses of up to $2,500 paid out over time, and raised its minimum wage to $20 in mid-April.

AT&T is offering bonuses of up to $5,000 for installation technicians that it needs in Columbus.

In addition to increased compensation, Verizon offers more unusual perks such as help with adoption, said Heidi Flato, a Verizon communications manager.

"We're always looking for new and creative ways to make sure that we're remaining competitive and that we're able to attract the best people," Flato said.

Amazon is also among the companies that has expanded its benefits in recent years as it looks to fill openings in Greater Columbus.

The online retailer says it has 500 openings in the region that offer a starting wage of at least $15 per hour, comprehensive health benefits, paid time off, up to 20 weeks paid parental leave and other benefits.

On top of that, hourly workers who have been with the company for 90 days become eligible for Amazon's Career Choice program that offers full, prepaid tuition from national or local partners including Columbus State Community College, Ohio Dominican University and Clark State College.

Ferruso said employers are offering benefits such as better health insurance and the possibility of working from home to lure applicants. But employers are also facing inflationary pressure across the board, creating a "perfect storm" of rising costs for companies.

"The No. 1 issue our members are facing right now is inflation, followed by inability to fill vacancies," he said.

"At some point, the pie is only so big. Our members will have to make adjustments accordingly. But right now, they need folks in their operation."

The restaurant industry has especially been struggling with finding workers, even though few restaurants pay minimum wage anymore, said John Barker, CEO and president of the Ohio Restaurant Association. The average server makes about $27 an hour including tips, according to recent national survey data.

"We obviously have a big need for employees this time of year because we have so many more places serving food," Barker said.

Though bonuses and perks have been effective, he said, restaurants are still in crisis mode.

"If you want to attract and retain great people, which we all do, you've got to work at it and you've got to make it an attractive place that people want to be," Barker said.

Information from Dispatch reporter Mark Williams and the Associated Press is included in this report.

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