Festive Workforce Crunch: Employers Turn To Incentives As Transport, No-Shows Disrupt Hiring

New Delhi: As businesses gear up for the festive rush, hiring seasonal workers is becoming an increasingly expensive exercise, with employers relying on joining bonuses, overtime premiums and additional incentives to attract talent. However, beyond rising labour costs, companies are also grappling with challenges such as worker no-shows, transport constraints, delayed payments and the need for stronger workforce reliability.

According to Festive Season Outlook 2026 of the global job site Indeed, nearly half (47 per cent) of employers plan to offer performance or attendance incentives to seasonal workers, while 44 per cent intend to provide overtime or peak-shift premiums. Around 28 per cent are also considering completion or retention bonuses, reflecting growing efforts to keep workers on the job during the high-demand period.

The report highlights that 35 per cent of employers cite insufficient applicant availability as a potential barrier to workforce readiness, followed by commuting and transport constraints (28 per cent), post-offer no-shows (26 per cent) and mismatches in pay expectations (25 per cent).

Ajay Sharma, HR and Legal Advisor, told ETV Bharat that festive hiring has become significantly more expensive as employers compete for a limited pool of seasonal workers through joining bonuses, overtime premiums and higher wages.

“While these incentives help fill vacancies quickly, they often increase labour costs without guaranteeing workforce stability,” he said.

Sharma said the bigger concern was the quality of festive employment, adding that timely salary payments, written contracts, safe transport arrangements and basic job security were critical to building worker trust and improving retention during peak demand.

“Organisations that overlook these fundamentals may face higher attrition despite offering better pay,” he said.

Sashi Kumar, Managing Director, Indeed India said, “The interesting shift is that the festive season is becoming a window into how companies want to build their workforce more broadly. Businesses still need the flexibility to respond to a sharp rise in demand, but they’re also recognising that short-term hiring doesn’t have to mean short-term thinking. When employers start earlier and create opportunities for strong performers to stay on, the festive period can become a practical way to discover talent that might otherwise have been missed.”

Transport, worker reliability key challenges

The report also highlights the role of transport facilities in expanding the available workforce. While 28 per cent of employers identify commuting and transport as a hiring constraint, 61 per cent of workers open to festive employment say they would consider night shifts if safe transport were provided. Another 55 per cent would be willing to commute farther with transport support.

The findings suggest that better transportation arrangements could help employers reach a wider pool of candidates, particularly for roles involving late-night operations and extended shifts.

Sharma said finding workers was only the first challenge, as employers continued to struggle with no-shows, transportation constraints and the physical demands of long festive shifts.

“As a result, recruitment spending alone does not solve the problem. Companies must invest in workforce preparedness, attendance management and employee support systems to ensure operational continuity during the festive season,” he said.

Background verification under pressure

Another concern is the risk of compromised background checks as companies rush to onboard large numbers of workers within compressed timelines.

Sharma said HR teams under pressure to fill vacancies may delay or skip critical verification processes, creating potential reputational, operational and customer-facing risks.

He said robust background verification, including employment validation, identity checks and responsible social media screening where legally permissible, was particularly important for positions involving direct customer interaction, cash handling, delivery operations or brand representation.

Workers' trust could shape future hiring

The report indicates that workers are looking beyond immediate earnings when evaluating festive employment opportunities. Nearly 32 per cent said delayed, irregular or missed payments would make them hesitant to accept a role, while 25 per cent expressed concern about the absence of written contracts or clear employment terms. Around 34 per cent said a verified employer and trustworthy job posting would influence their decision.

Sharma said companies should not view festive recruitment as a purely short-term exercise, as seasonal workers could become future applicants, brand ambassadors and sources of referrals.

“Organisations that provide a positive employee experience through fair pay, timely communication, safety measures and respectful treatment strengthen their employer brand in the market,” he said.

He added that a strong reputation could help reduce hiring costs, improve worker availability and increase rehire rates during future festive seasons, creating a sustainable talent pipeline rather than a recurring recruitment challenge.

“The true cost of festive hiring is not just higher wages and incentives. It is about ensuring workforce reliability, safety, compliance and trust. Companies that balance speed with due diligence, while investing in a positive employee experience, build a stronger employer brand that pays dividends long after the festive season ends,” Sharma said.

The Indeed study, among 1,277 employers and 2,569 employees and jobseekers across India, examines festive hiring expectations, workforce planning, employment conditions and worker preferences.

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