Did you know that consumer spending is responsible for about 70% of the nation’s economic activity, and the retail industry employs more people than any other business sector?
On the surface, that might make you think that companies in the retail sector are in a sweet spot – but that’s not necessarily the case right now.
Meanwhile, labor issues – specifically lingering labor shortages – are top concerns among retail management teams.
Retailers dangled perks such as triple-digit sign-on bonuses, free college tuition, and record-high wages to get staff signed up before the busy holiday shopping season.
Fast-forward six months or so, and many retailers are still in a tough spot when it comes to hiring and retaining workers. Some 83% are now investing most heavily in employee recruitment and retention.
As they move through 2022, retailers need to revisit the way they think about their employees as they consider the future, and this goes beyond just looking at the salaries they offer. Today, people’s priorities have changed, particularly regarding flexibility, culture, and personal wellness.
Let’s consider some strategies you can adopt to ensure you’re in a strong position to attract workers to join your team in 2022.
During the pandemic, many non-essential retailers had no choice but to close shop and/or transition their operations online.
Some moved entirely to an e-commerce business model. Others initiated some form of click-and-collect or “buy online and pickup in-store” (BOPIS) model.
Having invested heavily and, in many cases, seen promising results from this approach, many retailers plan to invest even more in e-commerce, as well as other digital solutions like automated checkouts, voice commerce, or staff-free cashier-less stores.
Many retailers are now generating a significant stream of business from delivery and fulfillment services and online orders, not traditional brick-and-mortar retail.
While there will always be a need for frontline assistants, customer service staff, and cashiers, retailers must attract remote call center agents, delivery drivers, and e-commerce technologists.
This means that retail management and recruitment teams need to adjust their approach to finding good candidates for this new “hybrid” retail reality.
Here are a few considerations to bear in mind as you look to optimize your hiring process:
While it’s widely accepted that workers today are looking for more than a good paycheck, you’ll struggle to attract scarce talent if your compensation packages are mediocre. These recent statistics bear out this reality:
Following our previous point, retailers must reexamine their benefits packages and embrace creative ways to attract new employees, especially hourly workers. For example:
Responsible retailers appreciate the importance of regular and meaningful bi-directional communication between management and workers. However, given the level of physical and emotional separation that retail work can introduce between workers, leaders must pay attention to the nature and cadence of their interactions with their teams.
A great way to win this year’s Holiday Recruitment Race is to establish a strong communication culture using a digital employee communication app. Tools like Payactiv’s Connect platform help you send personalized, timely, and relevant information to your employees wherever they are.
Today’s hourly employees don’t have time to check email every day. With the Payactiv app, it’s easy for teams to get important company announcements and even communicate with each other.
Earned Wage Access (EWA) allows people to access wages they’ve already earned but not yet been paid. This particularly appeals to hourly workers who often live paycheck to paycheck. EWA eliminates the stress of borrowing money from friends and family or approaching unsecured lenders who typically charge exorbitant interest rates.
Payactiv is the leading provider of Earned Wage Access services. Our award-winning app provides a holistic approach to financial wellness with services that help build financial resilience by saving towards short and medium-term goals.
Allowing people flexibility around when they work is another easy way to improve your employee value proposition. For example, with Payactiv Connect, your hourly workers can access a shift management system. This is helpful for workers should they suddenly find themselves in a tight spot if an unforeseen personal commitment or health matter arises.
Payactiv is a recognized leader in employee wellness solutions for retail businesses seeking to help employees fully participate in both work and life. Our all-in-one Livelihood benefits platform takes a holistic approach to improving financial wellness and increasing employee satisfaction.
Interested in learning more about Payactiv’s Service? Book your demo now.
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