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August 19, 2021: –Southwest Airlines launched new incentives this week in hopes it will release its trouble hiring as travel demand bounces back from pandemic lows.
“Southwest experience a sharp decline in qualified applicants due to low labor force participation and competition for available talent,” Julie Weber, Southwest’s vice president and chief people officer, wrote in a note to staff on Tuesday, which CNBC reviewed.
According to Weber’s note, staff can receive 20,000 “SWAG Points” if referral accept offers and work for six months. A company document says that those points on Southwest’s internal platform have a taxable value of 1.5 cents each.
It was not clear if the points could be redeemed for cash, however. Weber said five employees’ referrals would also be selected each week for 5,000 points for the referring staff member.
Southwest and other carriers spent much of the pandemic urging workers to take retirement packages or unpaid or paid time off partially. Now, they are scrambling to hire to cater to the rebound in demand of traveling that materialized faster than many airline executives said they expected.
This summer, staffing shortages in the airline industry have led to hours-long hold times for customer service lines and exacerbated flight disruptions from the weather. Flight crews at American Airlines and Southwest have complained about a lack of available hotels or food options while on duty.
In June, Southwest produced its minimum wage to $15 an hour.
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