By Joann S. Lublin
Unusual hiring alliances created by U.S. businesses in 2020 are
now bearing fruit.
When pandemic-related shutdowns devastated some industries and
turbocharged others last spring, dozens of employers joined forces
to match idled workers with open jobs. Companies with urgent
staffing needs in industries such as healthcare, grocery and
e-commerce formed large-scale matchmaking partnerships with
companies in hard-hit sectors such as hospitality, retail and
airlines to recruit workers who had been furloughed or laid off
Almost a year later, the partnerships have matched many tens of
thousands of workers with open jobs, according to several companies
involved in them. And labor specialists say they could be a model
for future hiring alliances among employers.
"It's really a very promising practice," says Jane Oates, head
of the nonprofit WorkingNation and an assistant secretary in the
Labor Department during the Obama administration. "This strategy
will outlast Covid-19," she says, as it likely will take at least
three years for the U.S. to regain lost jobs.
'A great fit'
CVS Health Corp. formed hiring partnerships with 64 U.S.
employers -- including Hilton Worldwide Holdings Inc. and Gap Inc.
-- as it raced to fill open positions in its stores, warehouses and
call centers amid a coronavirus-fueled surge in its business last
year. The pharmacy and insurance giant created dedicated hiring
websites for its partners' displaced workers and streamlined the
selection process for some jobs. Of the more than 100,000 people
whom CVS recruited from March to December last year, about 3,700
came from the new partnerships, according to a spokeswoman.
Amazon.com Inc. estimates it selected tens of thousands of
workers from 21 U.S. corporate partners such as Uber Technologies
Inc., Lyft Inc. and United Airlines Holdings Inc. as it went on a
hiring spree last year, placing more than 400,000 people in
permanent U.S. jobs to handle soaring demand for at-home
shopping.
The unprecedented alliances allowed Amazon to "quickly gain
access to a skilled workforce," says Ardine Williams, Amazon's vice
president of workforce development. "For instance, workers from the
hospitality industry bring a strong customer obsession -- which is
a great fit for Amazon." CVS and Amazon say they don't know whether
their new hires are making more or less than at their previous
employers because they don't ask candidates for such
information.
Other companies, including grocer Albertsons Cos., Fidelity
Investments Inc. and Walgreens, a CVS rival owned by Walgreens
Boots Alliance Inc., also have used job-pairing alliances to find
new hires amid the pandemic.
Albertsons says it has recruited at least 1,400 staffers from 23
corporate partners, including Hilton, MGM Resorts International,
Regal Cinemas and Inspire Brands Inc., whose portfolio includes the
Arby's, Buffalo Wild Wings and Jimmy John's restaurant chains.
Fidelity launched pilot projects with Hilton, Marriott
International Inc., Delta Air Lines Inc. and JetBlue Airways Corp.
Most of the new hires landed customer-service spots, a Fidelity
spokeswoman says, although she couldn't give a specific number.
Walgreens estimates roughly 6,200 employees arrived from 50-plus
partners, including retailer Kohl's Corp., Hilton, Gap and the
Chicago Cubs. Walgreens plans to keep hiring this way for the
indefinite future "because it has been so successful," says Chief
Human Resources Officer Hillary Leisten.
The partnerships taught Walgreens to be nimble about hiring and
integrating part-time staffers, a spokesman says. The company also
discovered a new set of applicants from the hospitality industry
with "soft skills" that transfer well to retailing, he says.
In a global matchmaking endeavor, meanwhile, consulting giant
Accenture PLC and three U.S. companies in April introduced a
business-to-business exchange called People + Work Connect that
pairs hiring employers with those that are letting workers go.
The free online platform quickly attracted 273 employers from 93
countries. The platform contains approximately 400,000 jobs, which
represent employers' openings and positions formerly held by job
seekers.
"Accenture enjoys economies of scale that individual companies
generally don't," because its platform pools information from so
many businesses, says Susan Houseman, vice president and research
director of the Upjohn Institute for Employment Research.
Innovative model
During prior recessions, businesses never collaborated on a
large scale to help workers find jobs, labor economists say.
A downturn usually "is an opportunity to let your least
important workers go," and that discourages other employers from
recruiting them, says David Deming, a public-policy professor at
Harvard University's Kennedy School who specializes in weak labor
markets.
Today's cooperative effort "is quite unique to this recession,"
says Upjohn's Ms. Houseman. She points out that the pandemic
bifurcated the economy and crippled government centers that
normally assist layoff victims.
The CVS approach, in particular, "represents a very innovative
model worth imitating" because it can shorten how long individuals
remain jobless, says Ben Damerow, a division head at the Upjohn
Institute.
Although he doubts nationwide matchmaking will outlast this
downturn, he does think employers involved in the partnerships will
have gleaned lessons about expedited hiring processes. Those
lessons include the importance of interviewing applicants promptly
and not delaying "onboarding" of new picks.
Hilton, which furloughed 45,000 of its 60,000 U.S. employees at
some point during 2020 and laid off 3,900 others, formed hiring
alliances with 180 North American employers to help the affected
workers. The hotel firm chose CVS as one of its 29 "premier"
company partners because it liked its approach.
"Staffing doesn't always have to be a game of winners and losers
[for employers]," says Jeff Lackey, CVS's vice president of talent
acquisition. "We can create a win-win-win by offering jobs to
qualified candidates, brand protection for their prior employer and
talent to the hiring company."
Hilton received weekly tallies about its employees switching to
CVS. And Mr. Lackey fulfilled a promise to alert those recruits
when Hilton initiated furlough recalls, according to a spokeswoman
from CVS.
Laura Fuentes, Hilton's chief human-resources officer, says she
hopes many idled colleagues will come back once the hospitality
industry recovers. But Hilton recognizes the risk that some may not
return because "we've introduced people to great companies and them
to well-trained hospitality people," she says.
By year-end, Hilton had rehired about 100 of the 3,900 staff
members it laid off. More than 20,000 of its employees remain
furloughed, the company says.
Fresh start
Not everyone redeployed via matchmaking arrangements may return
to their previous workplace -- especially if they switch
fields.
Consider Gerardo Muñoz, a CVS pharmacy technician hired from
Gap. Technicians typically are hourly workers licensed to assist
pharmacists with filling prescriptions or answering customer
questions.
Mr. Muñoz worked at a Gap store in Skokie, Ill., for about five
years. He advanced from sales associate to key holder specialist,
an administrative role.
In early spring, Gap furloughed 80,000 workers because of store
closures. Among them was Mr. Muñoz. The struggling retailer soon
cut 15% of its workforce in North American offices.
Gap offered to connect affected employees with its more than 20
U.S. hiring partners, including CVS. Mr. Muñoz remembers being
attracted by CVS's customized website -- "it had a big Gap logo" --
plus the chance to enter healthcare.
Last June, the freshly licensed technician joined a CVS pharmacy
in Niles, Ill. Mr. Muñoz, 25, so enjoys his job that he turned down
Gap's subsequent invitation to return. "Almost everything I do is
helping our patients [to] improve their health," he says.
Ms. Lublin is a regular contributor and former career columnist
for The Wall Street Journal in New York. Email her at
joann.lublin@wsj.com.
(END) Dow Jones Newswires
February 19, 2021 09:14 ET (14:14 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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