Survey: Hiring remains difficult for retailers
Holiday hiring is holding steady, but attracting and retaining talent remains a big challenge for retailers.
That’s according to a new survey of 100 major U.S. retailers by global organizational consulting firm Korn Ferry, which found that seasonal store hiring has remained steady despite mixed signs about the economy.
Three-quarters (75%) of retail respondents said they did not change their seasonal hiring plans, and only 10% said they have decreased the number of seasonal employees they hired versus what they had planned earlier in the year.
In other findings, nearly half (44%) of the retailers reported that they are hiring for new positions and replacing for turnover. And 37% said they are considering restricting new positions, but are still replacing for turnover.
Hiring continues to be difficult. Eighty-three percent as 83% of respondents said they have trouble hiring store employees.
“It’s incredibly challenging to staff stores to ideal levels, so retailers should find unique ways to incentivize workers to join – and to stay,” said Korn Ferry retail expert Craig Rowley. “That may come in the form of flexible work schedules, discounts and other incentives.”
Compensation
In terms of compensation, the largest percentage (25%) said their planned national minimum start rate for store employees in 2023 will be $15 an hour.
Several states are now requiring companies to provide salary ranges with job postings.
Nearly half (47%) of retailers said they have determined how to post ranges in those states and are considering what to do in the rest of the country.
“Competitive compensation is a very important part of the entire employer value proposition,” explained Rowley. “It’s critical for retailers to continually assess their pay structures to ensure they can attract and retain the talent they need.”
The Korn Ferry survey of more than 100 major U.S. retailers, with annual revenues between $100 million to more than $20 billion, took place in early December 2022.