2021 Stimulus Check Effect Tool

2021 Stimulus Check Payments and Tax Credits may be affecting your ability to recruit new workers

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Updated 5/18/2021 - A Fourth Round of Stimulus Checks For American Workers and Families May Be One The Way in July of 2021

We are continuing to monitor news and updates around an anticipated fourth round of stimulus checks that could begin being mailed as early as July 2021, right as many employers are beginning their Q3 and Q4 hiring their seasonal ramp workforce.

Since March, more than 165 million Americans have received payments for the third round totaling $388 billion so far, with more payments on the way as taxes have been filled with the extended  May 17 deadline. The third round of stimulus effects for families is shown in the stimulus calculator tool below.

The American Families Plan, currently on the table, may give Americans several more opportunities to receive funds through new tax credits not accounted for in the tool below. The expanded tax credit will provide families earning less than $150,000 (or $75,000 for a single earner) with monthly $250 cash payments from July through December for each child aged 6 to 17. And for kids under 6, you’ll receive $300.  This could significantly impact worker's decision to re-enter the workforce during the summer months and throughout the remainder of the year.

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Additional rounds of stimulus payments and tax credits directly impact companies' ability to recruit the workforce they need to meet demand in this recovering economy.

  • With manufacturing in the U.S. hitting 50-year highs and GDP expected to leave recovery levels and head into growth territory, we see labor shortages exploding in many industries, with job openings 8.6% higher than February 2020.
  • The immediate impact of the stimulus incentives is that many qualified applicants are staying at or going home.
  • Additional unemployment subsidies of $300 and an additional $1400 per family member will have huge impacts on lower-wage candidates and their decision to remain employed or not.
  • Applicants are being placed 63% faster as they enter the job market.
  • Added benefits are driving up market pay rates 35-76%.

Depending on family size, new unemployment and stimulus incentives are replacing workers’ salaries and will keep them from the job market until incentives expire.

To see the equivalent number of weeks worked in stimulus payments and tax credits for workers and their families, select a pay rate in the tool below.  

Round Three Stimulus Calculator

Family Size Stimulus Amount Equivalent Work Weeks

* note this tool shows the effect only of the third round is stimulus checks and tax credits and does not include the effect of a potential fourth round later in the year.

USE MARKET DATA TO WIN THE PAY RATE BATTLE

Worker pay rates have been rising steadily during 2021, and the competition for talent is now at its most fierce. Brand name employers such as Amazon, Target, Costco, and Walmart are raising their pay rates across the board, and a possible $15 Federal minimum wage is on the horizon. Our customers who are the first in their market to raise their pay now have the ability to secure the best talent ‘in’ the market, not just those ‘on’ the market and improve their production rates.

We take a data-led approach to analyze the total cost impact of hiring and speed to revenue for your company. This is essential when the labor market spikes and moves as rapidly as it is under a stimulus check impact. Using our Adecco Analytics platform, we can advise on local labor market conditions in real-time to create real results:

  • Modeling decreasing candidate application rates to balance increasing pay, we advised our customer on a $2/hour change. The new pay rate generated 225% more applicants than prior weeks (and is still climbing).
  • We worked with an onsite customer in Memphis to increase pay by $5/hour (50%) and saw a 260% rise in applicants, a 70% increase in fill rates, and a 50% decrease in early turnover. Read our case study.

ATTACK THE BARRIERS IN YOUR PROCESS

In addition to pay, qualified available talent has a shorter shelf-life than ever. To increase speed to hire and reduce candidate drop-out rates, we actively work with our customers to remove lengthy hiring practices and digitally streamline onboarding processes.

By targeting time-consuming screening like drug tests and background checks and  partnering with our customers to reassess prohibitive policies on returning workers such as tenure limits and do-not-hire lists based on attendance infractions, we've able to help them increase their speed-to-hire and retain the highest quality applicants.  Our customers who made these changes were able to utilize  34,000 more workers finding roles, leading to 86% of our surveyed customers agreeing that Adecco improved their peak season performance. Read our case study

REMOVE RETENTION OBSTACLES

The focus on employee retention has never been higher. Customers succeed in reducing turnover and retaining their investment in talent by analyzing where they are losing out compared to the market. Using our Six-Sigma based expert analysis, Adecco helps our customers use technology and improve processes to :

  • Identify and remove outdated attendance and call-off policies .
  • Add flexibility to schedules by dropping mandatory overtime or weekend schedules.
  • Add incentives programs around attendance and tenure.
  • Explore additional benefits customers can offer, like early access to earned pay, subsidized transportation costs, and increased paid time off.

 

Every day at Adecco, we consult with our clients and offer solutions to ensure every client maximizes their chances for success.

Now it’s your turn. Contact us and tell us about your staffing needs.

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