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Local businesses relying on bonuses, perks to attract new employees

By Don Coble don@opcfla.com
Posted 7/28/21

MIDDLEBURG – Abbi Bell thought her problems finding help were solved when she hired three new workers last weekend at Cedar River Seafood Restaurant.

But when none of them reported for their …

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Local businesses relying on bonuses, perks to attract new employees


Posted

MIDDLEBURG – Abbi Bell thought her problems finding help were solved when she hired three new workers last weekend at Cedar River Seafood Restaurant.

But when none of them reported for their first day on the job on Monday, she was left with the same dilemma facing most shop owners and restaurant managers everywhere – finding people who are willing to work.

“It doesn’t matter what you do,” Bell said. “They’re not coming in.”

Bell’s family has owned a small local chain of seafood restaurants for the past 28 years. The COVID-19 pandemic, followed by rounds of stimulus, unemployment and child tax credit checks, has depleted the pool of capable workers – and threatened the long-term sustainability of small businesses.

According to the U.S. Department of Labor, there currently are 9.3 million job openings in the country. At the same time, the department reported more than 419,000 new unemployment claims last week.

On top of that, Congress recently passed another entitlement that can be worth between $250-$300 a month for each child.

“It’s a combination of things,” said Grumpy’s Restaurant in Middleburg owner Dell Hoard. “It’s not only the government handing out stimulus checks, but pay has increased a lot in the past six months.”

Hoard and Bell said their biggest challenge is finding cooks. Hoard said starting pay has risen about $4 in the past six months. Bells said she’s starting cooks from $12-$15 an hour, with a $1 an hour increase following a 60-day trial period.

Florida’s minimum wage is $8.65.

“It’s difficult because you want to pay them what they’re worth,” Hoard said. “There’s been a dramatic increase in pay for all businesses. When you’re a small business, you have to be concerned with customer service. We’re lucky here because we have a very loyal clientele. We have a very special family-friendly environment.

“If we keep going like this, it will affect small businesses more and more in the next six months.

In an effort to boost the workforce, many businesses are offering perks to anyone willing to punch a time clock. Starting salaries have risen dramatically, and some are offering sign-on bonuses, extra vacation days and healthcare.

Tampa-based Phase Three Star LLC, which operates the Hardee’s in Middleburg, is willing to pay its new employees on a daily basis. New FedEx warehouse package handers in Jacksonville and Circle K employees can earn a $500 bonus just for showing up to work, while Ruby Tuesday is paying $200. Other companies offering sign-on bonuses include Ollie’s Bargain Outlet and Amazon.

According to studies, workers want more vacation time, flexible work hours, the ability to work from home, bonuses and healthcare to get back on the job.

Bell said she unsuccessfully offered sign-on bonuses at the Fernandina Cedar River before taking over the Middleburg store.

“They’d show up, work two weeks and we never saw them again,” she said. “People just aren’t showing up, and I think it’s going to get worse.”

Bell gets plenty of applications, she said, and she generally hires eight out of every 10 applicants. “But out of that, maybe one will stay,” she said.

Florida opted to refuse to accept $300 unemployment checks from the federal government at the end of June. Cedar River collected a stack of applications, but the interest was short-lived.

“We were fully staffed for about two weeks,” Bell said. “Then it dropped off to where it was a few months ago. We take good care of our employees. Our employees come first here.”

Bell said she needs another four-to-six workers. Until then, she will work double shifts to make up for the shortage.

“I don’t mind,” she said. “When you’re an owner, it’s what you do. It’s my job.”