SOI 2023: Labor – Hiring Difficulties Still Linger

While promo's labor market has loosened some since 2021, it remains a pain point. The data shows that half of suppliers and distributors say they’re concerned about finding qualified workers, and they tell Counselor they’re still competing for talent and doing what they can to retain those who join their company. “On the outside, our industry seems straightforward,” says Olivia Scott, owner and president of Promotional Partners (asi/397983) and an ASI Media Distributor Salesperson of the Year finalist for 2023. “On the inside, you realize it’s not. Suppliers don’t all communicate in the same way; they have different portals – one needs the orders this way and the other that way. There are a lot of variables and so much nuance.” Even at larger firms, competition remains stiff. “The broader the qualification set, the less challenging it is to hire,” says Mark Lenox, vice president of merchandising and creative for Top 40 distributor IMS (asi/215310). “When it’s more acute with lots of qualifications, finding people is still a challenge.”

Hover over the bar charts to see more detailed State of the Industry statistics.

U.S. unemployment rate as of March 2023, showing little change. “Job gains at many services businesses are helping offset cuts at large companies in industries such as technology, finance and entertainment,” The Wall Street Journal reported.

(Labor Department)

FINDING QUALIFIED WORKERS

(Extremely or Somewhat Concerned)

RETAINING BEST WORKERS

(Extremely or Somewhat Concerned)

PERCENTAGE OF SUPPLIERS WHO INCREASED EMPLOYEE COUNT IN 2022

“We’ve been able to fill positions by increasing salaries and also casting a much deeper and wider net to look at different industries for talent.”Memo Kahan, PromoShop
(asi/300446)

0 in 10

suppliers raised wages in 2022 to retain current employees. They increased their wages by an average of 16%.

An equal percentage of suppliers and distributors (15%) named “Recruiting and retaining well-qualified employees” as their most difficult business challenge. It ranked second among suppliers and third for distributors.

4 Tips for Talent Acquisition

Finding great workers isn’t as tough as last year – but it’s far from easy. Use these strategies to get a leg up.

1Look For a Growth Mindset
For smaller companies in particular, it’s difficult to keep raising wages and adding to the list of benefits, says Olivia Scott of Promotional Partners (asi/397983). The primary reward for working at smaller firms is often the opportunity to see the company grow. “We want to hire people with that mindset, though it can be difficult to vet that out,” she says. “We’re all on a treadmill and everyone is looking for the pearls, particularly those who want to stay and be involved. We’re all feeling it and trying to do our best. It’s the perennial challenge of a small company.”

2Offer an Intentional Work Environment
COVID has undoubtedly changed what people expect from their employers. Top 40 distributor IMS (asi/215310) offers a hybrid work week, which Mark Lenox, vice president of merchandising and creative, says has been a good draw for applicants looking for flexibility. “We make sure we’re compassionate and understanding,” he adds. “People are valued here. It’s a good environment – people care about their work and respect each other. We also train cross-functionally, which is great for those getting used to their positions.”

3Seek Out Recent Grads
Top 40 distributor PromoShop (asi/300446) recently brought on two staffers who finished their undergraduate degrees this year – one in marketing, the other in business – after recruiting them during college job fairs. “We have to remain relevant, especially as buyers get younger,” says Memo Kahan, president of PromoShop. “It’s an investment in the future. Both of them insisted they wanted to come into the office to be with people.”

4Negotiate With Each Hire
At smaller companies, there’s often more flexibility to extend individualized perks. Richard Flashenberg, CEO of Colemax Group (asi/45704), says he can sometimes offer higher pay when compared to other entry-level jobs in nearby Manhattan. Maybe there’s opportunity for additional benefits like a car allowance for frequent travelers, for example. “One of our employees became a mom and brought in her baby when she needed to,” says Flashenberg. “We give people what they need. It’s not cookie-cutter.”

State of the Industry 2023

Labor

State of the Industry 2023

FINDING QUALIFIED WORKERS

RETAINING BEST WORKERS

PERCENTAGE OF SUPPLIERS WHO INCREASED EMPLOYEE COUNT IN 2022

PERCENTAGE OF SUPPLIERS WHO INCREASED EMPLOYEE COUNT IN 2022

4 Tips for Talent Acquisition

State of the Industry 2023