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How to Succeed at Seasonal Hiring in a Year Unlike Any Other

For retailers, this holiday season will be unlike any other — and so will the seasonal hiring cycle. Here's what to know, how to plan, and where to start securing the associates you need for the season just ahead.
Whether you're already hiring for the holiday rush or just about to start, it pays to consider the ways this year's holiday season will be different than any that have come before. Although this will be our second holiday season amid a global pandemic, analysts are predicting strong returns for this upcoming season. And while in-store traffic won't quite see a return to pre-pandemic levels, a recent Sensormatic Solutions survey found the majority of U.S. consumers plan to shop in stores this holiday season. Optimistic sales forecasts, improving in-store traffic, and increasing demand for in-store pick-up services are all leading indicators for what may become a wonderful holiday season!
Wonderful, that is, if you’re able to hire the required seasonal build. Here's what to keep in mind as you prep for seasonal hiring.
The labor market isn't on your side
It's no secret retailers are struggling to hire and retain talent. At the time of this writing, there are 1.1 million job openings in retail — over 300,000 more than this time last year. This is driven in large part by the fact that between 500,000 and 700,000 retail workers left their jobs each month during the spring and summer. As a result, retailers are raising wages, lowering qualification requirements, and offering signing bonuses and even debt-free college educations, among a host of other moves designed to attract the staff they need, according to CNBC.
Meanwhile, retail workers are the second-most-likely occupation to encounter workplace violence, as reported by Loss Prevention Magazine.
The combination of these factors will likely make this the most challenging hiring season ever — they may even make it harder to retain your permanent staff. And you're not just competing with other retailers: Amazon is adding 125,000 new jobs, while Target and UPS are adding 100,000.
So, what can you do to compete?
“Retailers that have grown accustomed to drastically reduced traffic since the pandemic began will have to contend with more shoppers than they've seen in two years.”
— Pete McCall, senior manager, retail consulting practice at Sensormatic Solutions
How retailers can win the war for talent this holiday season
The first and most obvious answer is wage related, which may require conducting a competitive wage analysis. If the surrounding competition is offering stronger wages, you’ll need to strongly consider matching or beating the industry average. Lululemon has done exactly this in their push to hire 8,000 store associates this holiday season, as reported by Retail Dive. It's a costly proposition for sure, but it's much less costly than negative customer experiences, stores in disarray, and a raft of negative reviews online.
Other levers include:
Improved discounts for seasonal workers
It's not uncommon for seasonal workers to return to the same retailers several years in a row as a result of holiday discounts they can use when buying gifts, so consider upping your discount rates this season.
Flexible scheduling
The ability to have some control over when they work is an attractive proposition for many workers, especially working parents who were pushed out of the industry by childcare duties created by the pandemic, according to NBC News.
An attractive (and safe) work environment
Stories of retail workers being accosted by shoppers seem to be daily news, so conveying a safe, orderly, and attractive working environment may prove critical for attracting talent.
Nontraditional (for retail, anyway) recruitment channels
Social media may be a fertile source for talent in many industries, but retail has been slow to catch on. That's changed as a result of the pandemic, and the pressure to hire amid a labor shortage has forced retailers to get creative. RetailWire reported that Target, for example, recently solicited resumes via TikTok to engage Gen Z applicants.
“There are 1.1 million job openings in retail — over 300,000 more than this time last year.”
— Pete McCall, senior manager, retail consulting practice at Sensormatic Solutions
How to keep talent throughout the season — and beyond
Hiring seasonal workers is only the first step. The next is keeping them. And with so much competition, retaining workers — even for the duration of the holidays — is likely to prove difficult. But with some strategic planning, you can improve your retention rates and keep your top performers on staff even after the season's over. Consider implementing the following practices today:
Offer hiring and retention bonuses
Unsurprisingly, compensation is the deciding factor for many — or even most — seasonal workers, and a signing bonus that puts dollars in their pocket right away can be a powerful tool. But don't stop there: Consider retention bonuses that can be earned at certain milestones. For example, $X if the employee stays through the entire season, and $Y if they work all of the top traffic days within the season.
Communicate that seasonal work is often a path to a full-time career
If your stores are experiencing substantial turnover — and today, virtually all of them are — converting seasonal workers to full-time associates can be a boon for backfilling open roles. It may also be an attractive proposition for candidates looking for work beyond the holidays. Just be sure you're realistic about their chances of converting and communicate which KPIs you'll be monitoring to decide who makes the cut.
Deliver a seamless onboarding experience
The holidays are chaotic at best in most retail environments and onboarding often takes a backseat to more pressing priorities — but that comes at a cost. Extend onboarding beyond just day-one organization and consider pairing seasonal workers with full-time "buddies" on the sales floor to help them learn the ropes faster, feel confident sooner, and stay with you throughout the season.
Offer flexible schedules — but communicate and plan for your busiest days
As I noted above, flexible schedules are a huge lever for talent attraction. But it can also be hard to implement effectively in the compressed time frame of the seasonal rush. Attempt to be flexible with your scheduling whenever possible, but plan your shifts ahead of time by knowing what your busiest days will be — and staff your shifts accordingly. Consider scheduling "all hands" shifts on the days you'll be busiest, and communicate that policy clearly and well in advance.
“Hiring seasonal workers is only the first step. The next is keeping them.”
— Pete McCall, senior manager, retail consulting practice at Sensormatic Solutions
Takeaways
Hiring's always hard, but it's never been harder than it is this holiday season. But with the right incentives and benefits, and a solid retention plan in place, you could find that you are able to hire and retain the seasonal staff you need to succeed this holiday season.
About the Author
Pete McCall leads the Retail Consulting Practice for the Americas and EMEA regions at Sensormatic Solutions. He and his team partner with retailers and property operators alike to identify sales and profit focused opportunities. Before joining Sensormatic Solutions, Pete held a variety of store and district leadership roles for Macy’s during his 20-plus year tenure.
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