Logistics workers, like most of us, would prefer to see more money in their paychecks. In fact, pay rate is their No. 1 need, according to Employbridge’s 2024 Voice of the American Workforce (VOAW) report.
At the same time, pay isn’t their only motivator. They also want respect, and “I felt like I wasn’t appreciated/treated fairly” was the top reason they gave for leaving their last job, according to the VOAW report, which includes responses from tens of thousands of workers surveyed across the U.S.
How logistics companies address, or fail to address, these two issues can directly affect their ability to attract and retain workers.
By offering a retention bonus program in peak season, you can give workers more of what they want, gain a hiring advantage, and retain talent when you need them most. Bonus programs also can set a positive tone for Q4 and beyond, which may encourage top performers to stay on or convert to full-time employees.
How effective are employee retention bonus programs?
A 2023 article in SHRM magazine, published by the Society for Human Resources Management, shared experts’ opinions on the pros and cons of bonus or incentive programs. Several of the people interviewed said that short-term programs can be a way to emphasize to talent what’s most important for a specific performance period.
And as long as retention bonus programs are clearly communicated and defined, they can be quite effective in producing a desired result, as many of Employbridge’s clients in the logistics industry have found.
Retention bonus amounts can be cost-effective
Bonus programs don’t have to be prohibitively expensive. One of our clients in California, an e-commerce and logistics service, uses bonuses to improve attendance during peak season. During a recent peak season, they awarded $16,433 in bonuses, with the top earners receiving between $650 and $700.
This client’s bonuses are structured in different ways to keep talent motivated. The program successfully encouraged talent to maintain their attendance, demonstrating the value of such programs in improving workforce reliability during critical periods. Our client determined that the investment was well worth the boost in Q4 attendance.
Real-life retention bonus examples for keeping Q4 talent
Here are the types of bonuses this client offered during peak season.
Weekly Attendance Raffle: This was open to all team members who worked all shifts assigned (minimum of eight hours) during the raffle week. The top prize each week was $25; five secondary prizes of $50 also were awarded.
Peak Season Raffle: Team members with a start date of Oct. 1 or earlier who worked all shifts during peak season (minimum of eight hours per shift, 33 shifts total) were eligible to win a grand prize of $1,000. Five other workers won $200 prizes.
Peak Season Hourly Bonus: Team members with a start date of Oct. 1 or earlier qualified for this bonus. Here’s how it was structured.
- Perfect attendance: $1.50 per hour bonus (regular and overtime) for each hour worked, plus a $200 incentive if they maintained perfect attendance for the duration of peak season
- Missed only one shift: $1.50 per hour bonus for each hour worked, but no kicker
- Missed only two shifts: $0.75 per hour bonus for each hour worked
Workers who missed three or more shifts weren’t eligible for an hourly bonus but could participate in the weekly raffles if they met attendance qualifications.
Other types of bonuses to offer during peak season
Other Employbridge clients have taken a different approach to bonuses during Q4, offering programs including bonuses for:
- Signing on
- Completing the season
- Working through the midpoint (partial bonus) and end of the season (remainder of bonus)
- Referring people who are then hired by the client
There’s no one right way to award bonuses. However, a successful program must be easy to understand, offer a way for everyone to take part, and be explained clearly to employees in multiple ways, such as in person, in printed materials, and by text message or email.
Why choose Employbridge?
Our expertise and resources can help you gain valuable insights into workforce trends, optimize workforce management practices, and develop strategies to attract, retain, and engage top talent.
Employbridge offers a range of value-added services, such as:
- Workforce analytics
- Workforce management solutions
- Real-time data analytics and visibility
- Employee retention strategies
Just importantly, as our partner, you’ll gain access to our vast network of qualified candidates across industries and our workforce solutions, including Bluecrew by Employbridge and EmployGig. Both can help you build an on-demand workforce for Q4 or fill last-minute needs.
Want to learn more about how we can help?
