It’s a long road ahead for retailers in this tight labor market, but there are actionable strategies to help make it a smoother ride for employers and workers.
June 2, 2022 by Aakash Kumar — CEO and Founder, Shiftsmart
It's not news to anyone that workers are incredibly hard to come by these days, worsening the retail customer experience through staff shortages or unhappy and stressed-out employees.
Employers are scrambling to hire, even offering higher hourly pay and bonuses. That may be a positive trend for today's workers, but it doesn't entirely solve the problem and puts a financial strain on retailers.
It's time for retailers to take a fresh look at how they hire and manage workers. In addition to increased pay, what are some other actionable hiring strategies that can help in today's job market?
It's time to focus on hyper-flexible, on-demand shifts. Many retail jobs can be broken down, or fractionalized, into different shift responsibilities. One 9-to-5 job at a department store with various duties can often easily be broken down into different tasks at different times — by different people.
I've advised one major convenience store chain to do just that, and was able to out-recruit their hiring record by 10 to 1 — just by offering hyper-flexibility to what was once one job.
Today's workers increasingly not only want to make their own schedules but many truly need to. A working parent, college student, or elder caregiver is not necessarily going to be able to work full days. And why should they have to?
We live in an increasingly on-demand, gig economy pioneered by ride-sharing services, TikTok influencers and other freelancers looking to break free from the traditional 9-to-5 day — even the traditional shift commitment.
There should not be a "take it or leave it" attitude by an employer. A worker shouldn't have to make excuses or dodge hourly work undesirable or unsuited to them. One recent study by UC Berkeley and UCSF showed that workers who had two days' notice of their schedule or less had a 65% probability of being happy. Unhappy workers, unhappy customers.
Allowing workers to pick and choose the shifts that best suit their schedules is the only way to operate in today's worker-driven market.
Then there's the type of worker you hire. Typically, employers are looking for those who know their brand/store, or can easily transfer relevant experience. A worker at The Gap in New York City, would be hired next month at a Gap in Westchester, no question. A retailer like Aeropostale, Claire's or Macy's might also snap them up — because it's an obvious fit.
Yet, should a worker be pigeonholed to one type of employer? Interpersonal, sales and customer service skills are transferable — yesterday's school bus driver can be tomorrow's customer service agent. Thinking slightly outside the box is critical.
Many savvy retailers are likely already making these types of hiring calculations — and that's a good thing.
Shift work has always been part of the retail hiring model, but it has never been very flexible and scalable has it been for workers and employers alike. Shifts tend to be scheduled by phone, voice mail, even text but not through any reliable, efficient, automated process.
As a result of the pandemic, the digital transformation of society has been accelerated by years — according to McKinsey and KPMG. Fintech has rocked the financial world with its easy-to-navigate, intuitive, app and web-based offerings — threatening to unseat some of the major banks in certain aspects of banking and investing. As previously mentioned, Uber and Lyft disrupted the taxi industry. The list goes on.
Digital transformation is also coming to retail in many ways, so why not in hiring practices? Why can't a retail worker control and manage their own shifts through an app, for example? That is how the world communicates today.
Job shifts should be on-demand for the worker, and the retailer should be able to see who's requesting a shift and approve or not approve with a click of a button. Partnering with a company that can help put your work shifts on an app that your workers can clearly see can make it easier on both you and the worker to ensure your shifts are getting filled.
It's a long road ahead for retailers in this tight labor market, but these are some actionable strategies to help make it a smoother ride for both employers and workers alike.
Aakash Kumar is CEO and founder of Shiftsmart