Southwest Airlines Offers Staff Referral Bonuses Worth $ 300 As Carrier Struggles To Fill Jobs

Southwest Airlines this week launched new staff referral bonuses as the carrier struggles to hire new workers to meet a rebound in travel demand.

“Southwest is seeing a sharp decline in the number of qualified applicants due to low labor market participation and competition for available talent,” wrote Julie Weber, Southwest’s vice president and chief human resources officer, in a comment. note to staff on Tuesday, which was reviewed by CNBC.

Staff can receive 20,000 “SWAG Points” if the referrals accept the offers and work for six months, according to Weber’s note. These points on Southwest’s in-house platform have a taxable value of 1.5 cents each, according to a company document, giving the points a value of around $ 300. Southwest Points can be redeemed for loyalty miles, gift cards or concert tickets.

Points cannot be redeemed for cash, Southwest said. Five employee referrals will also be selected each week for 5,000 points for the referral staff member, Weber wrote.

Southwest and other carriers have spent much of the pandemic urging workers to take early retirement packages or unpaid or partially paid time off. Now they’re scrambling to hire or retrain staff to meet the rebound in travel demand that has materialized faster than many airline executives have said they expected.

Staff shortages in the airline industry this summer have resulted in hours of waiting for customer service lines and exacerbated flight disruptions due to issues such as bad weather. American Airlines and Southwest crews have complained about the lack of hotels or dining options available while on duty.

In June, Southwest increased its minimum wage to $ 15 an hour.

Southwest did not say how many employees it hopes to hire. Earlier this year, he said he needed more flight attendants and pilots, although job postings also include ramp attendants and customer service, among others. The incentive program runs until November 20.