Retailers will be hiring fewer part-time holiday workers this season in
reaction to predictions of flat retail sales growth of 1 to 2 percent from last
year.
But because rising unemployment is expected to yield a bigger crowd of job
seekers this year, retailers have a chance to get better-quality hires, analysts
say.
Several economic indicators point to a tepid holiday shopping season for
retailers as tough times limit consumer spending. The 10-year average of holiday
retail sales growth is 4.4 percent, according to the Washington-based National
Retail Federation, but forecasts for this season have slipped to 2.2 percent.
Daniel Butler, vice president of the federation’s retail operations, said
retailers plan to hire fewer part-time workers but will likely give them more
hours per week.
Part-time workers will be deployed primarily at stores within national chains
where sales are strongest, Butler said, with managers closely tracking activity
so headquarters can make staffing adjustments on the fly.
“They’re planning [seasonal hiring] store by store and determining what their
actual need is,” Butler said.
But stores also likely have a core of proven part-timers available on call to
staff any store where sales are more active than predicted, Butler added.
“A lot of companies have developed a bench if business is stronger,” he
said.
But this year, “they’re really counting more on existing full-time staff,”
Butler noted.
Retailers aren’t planning to cut any full-timers, whose ranks have mostly
grown in the past year, he said.
Veronica Harvey, senior vice president of talent solutions for Chicago-based
Aon Consulting, said retailers should be especially keen this year on hiring the
best temporary help because it can translate into more sales.
“Getting the right people is going to continue to be critical,” she said. “In
a year in which every sale is particularly critical, you don’t want to lose a
sale because you don’t have someone working in an appropriate manner.”
“A strong service orientation” isn’t teachable, Harvey said, but it is
detectable through a good applicant-screening process.
Other desired traits of holiday hires, such as dependability to show up for
work and adaptability to various job shifts, also can be detected with screening
tools. Basic math, literacy and reasoning skills are also assessed.
“If you can hire someone who sells incrementally more” than an
average-performing quick hire, Harvey said, “at a big box retailer, that
translates into a lot of dollars. The key for merchants is not to shortchange
the selection process.”
She added that holiday hiring has been put off by some retailers, which
suddenly gives them little time to hire.
And this year, with a higher volume of holiday temp workers expected to apply
for retail positions, screening tests can speed up processing of large batches
of applications, Harvey added.
Her recommendation to retailers facing an overload of applicants: Hire
consultants specializing in large-scale employee recruiting to save time and
attract good hires.
—Mark Larson
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