On Call Scheduling: The Beginning of the End?

Retail consulting firm McMillanDoolittle, Chicago, weighs in on its blog with three reasons why any retailer using the practice of “on-call” labor scheduling should end it immediately.

Here is the company’s posting:



Abercrombie & Fitch recently announced last week they would put an end to a labor scheduling practice called “on call” scheduling, where associates must be ready for shifts that can be canceled at the last minute. The retailer had been part of a group of retailers called out by the office of New York Attorney General Eric Schneiderman including Ann Inc., Burlington, Crocs, J.C. Penney, J. Crew, Sears, Target, TJX, Urban Outfitters, and Williams-Sonoma.



According to the Wall Street Journal, the Attorney General’s contention is that on call scheduling possibly breaks a New York law that retail associates must be paid at least four hours at minimum wage, even if they are sent home.



My focus here won’t be to opine on labor laws within the state of New York, but instead will focus on the on call scheduling practice itself. I believe any retailer continuing to use this practice should end it immediately. Consider the following reasons:



1. Happy associates will provide better customer service. An engaged workforce that is passionate about the brand will automatically contribute to a higher level of customer service. To this end, any retailer developing an omnichannel customer journey should include a focus on the associate. About 85% of the business still occurs IN the store! As a retailer, you should ask yourself:



a. What level of training should be provided to improve service and product knowledge?

b. Do our labor scheduling practices fairly ensure the right person is at the right place at the right time?

c. What customer experience will we ask each associate to provide that best represents our brand? Being forced to work an unpredictable schedule will certainly not help make you an employer of choice in the retail industry.



2. On call scheduling has had its day. There was a time when this practice was necessary. Schedules were written by hand and retailers had limited ability to predict sales demand. Experienced managers scheduled “like last year,” or new managers did their best to slot labor on the days and times they thought would be busiest while they learned the business. Unexpected surges of customers or slow periods would result in last minute schedule calls to come in or cut shifts. However, times have changed. The prevalence of scheduling technologies on the market today have turned the art of scheduling into more of a scientific process. Years of historical sales and scheduling history can be used to predict labor demand down to the day and day part level as well as section of the store. While an optimized labor scheduling system isn’t perfect, the higher levels of scheduling accuracy usually eliminate the need for an on call scheduling process.



3. The bad press can be devastating. The minimum wage debate as well as public forums such as Glass Door have resulted in intense attention on retailer’s labor practices. Abercrombie has certainly experienced its share of bad press over a litany of other issues, and the elimination of this practice is a step in the right direction. More importantly, it’s the right thing to do!



In an ever changing and hyper-competitive retail environment, your associates’ ability to bring your customer journey and brand to life can be the only thing between you and your competitors. Are your labor practices designed to simply staff “guards” in your stores, or rather to ensure brand ambassadors are present to assist your customers?