Three Solutions to Retail Hiring Challenges in a Dwindling Talent Pool

Over 15 million people, about one in 10 workers, currently work in the retail industry, which includes private sector giants and thousands of small businesses, from boutiques to restaurants. One large private sector company employs a whopping 10 percent of all retail workers, and typical retail wages range from $10 per hour for entry-level workers to $20 per hour for first-line supervisors and managers.

But there are a number of challenges with hiring the right retail workers for the job:

• The retail industry needs to fill a massive number of job openings on a regular basis, especially during the hectic holiday season.
• With the unemployment rate sitting at 3.8 percent, retailers are often fighting over the same dwindling talent pool of skilled retail workers.
• Retailers are seeing a high turnover rate for part-time retail employees, averaging about a 67 percent turnover, according to CNBC.
• The amount of time and money it takes to replace just one retail employee is crippling for many retailers.
• On average, it costs $3,328 to find, hire and train a replacement for a $10 per hour retail employee or 166 recruiter hours on average.

To solve these retail hiring challenges, retailers need to promote an attractive employer brand, create a quick and easy interview process and keep candidates engaged.

• Promote your employer brand. One helpful way to hire associates faster with less turnover is to define and promote a stellar employer brand. Your employer brand is your company’s reputation as an awesome place to work and what you can offer your employees in terms of company values, benefits and perks. According to a recent IBM study, 55 percent of applicants already had a positive impression of the company or organization before they applied.
• Create a simple interview process. Another way to speed up the replacement process is by creating a faster and more standardized process. Digital interviews can save companies up to 83 percent of interview time or 21 hours on average per hire, as well as up to 45 percent cost savings or $1,500 on average per hire, offsetting turnover costs.
• Keep your candidates engaged. You can hire more top retail associates by making sure that your candidates feel enthusiastic and engaged throughout the hiring process. Use email and SMS messages to keep in touch with all potential retail hires in your talent pool.

Retailers can solve hiring challenges by promoting what they can offer employees, creating a simpler interview process and keeping retail candidates engaged. Let interviewstream help you solve your hiring challenges!

About The Author

Esteban Gomez is a marketing consultant with interviewstream. He loves learning and has a passion for traveling, having visited many countries including China, Colombia, Italy, and Peru.