Help wanted

While inflation is the topic of the day, hiring and retention continue to affect the recycling industry and other businesses in the United States. But, as one economist notes, the two issues are related.

Tom Barkin, president of the Federal Reserve Bank of Richmond, Virginia, writes in early March, “Inflation has become the focus of conversation. But in its shadow—and partially pulling the strings—is tightness in the labor market. Employers continue to struggle to bring in new workers and keep existing ones. Job openings far outnumber individuals looking for work. Absenteeism is elevated due to COVID-19. Jobs are still down by nearly 3 million. Immigration remains far below its pre-COVID-19 trend. As a result of this tightness, wages are up 4.5 percent, the highest year-over-year growth in over 20 years.”

Barkin notes the issue is particularly acute in the low-paying personal services segment that was significantly disrupted by the pandemic, where potential workers see better alternatives in the transportation and warehousing sectors. But a parallel can be drawn with laborers working in scrap yards, material recovery facilities and other recycling facilities. Some recyclers have told Recycling Today they cannot compete with companies like Amazon that are opening nearby warehouses.

To attract employees, recycling companies have invested in higher wages and reassessed their benefits packages. They also are investing in automation to reduce their need for personnel.

“To attract employees, recycling companies have invested in higher wages and reassessed their benefits packages. They also are investing in automation to reduce their need for personnel.“

Houston-based WM recently announced plans to further invest in technology to address hiring and retention issues. In comments accompanying its first-quarter 2022 earnings, the company’s President and CEO Jim Fish says WM anticipates reducing 5,000 to 7,000 positions over the next four years, adding that in this tight and expensive job market it makes sense to use technology to reduce dependency on some high-turnover jobs. Additionally, the company says it will invest in training and upskilling its existing employees to prepare them for higher skilled roles.

South Carolina-based Custom Recycling, the subject of this issue’s cover story, has emphasized providing its employees with access to various resources, such as financial advisors, and providing a rich benefits package. The company also works to ensure employees can contribute ideas to streamline operations.

Is your company doing something innovative to address hiring and retention? Let me know by emailing dtoto@gie.net.