As the service industry preps for the holiday rush, many businesses are concerned with hiring the best possible seasonal employees. According to the National Retail Federation, service industry businesses will hire 530,000 to 590,000 seasonal workers this holiday season—that’s a lot of hiring in a short period of time.
Over the last few years the economy has boomed, and unemployment is at an all-time low (3.7% according to the Bureau of Labor as of July 2019). That’s great for people looking for jobs but has significantly impacted many businesses, especially businesses in the service industry. When turnover is over 76% for the hourly workforce (higher in some industries like food service and restaurants), companies are spending thousands to replace each employee resulting in massive turnover costs to their books. It is imperative that businesses understand what is impacting these high turnover numbers if they have any desire to reduce those numbers.
In a fast-paced, high-volume, decentralized labor environment like the service industry, many hiring decisions are put into the hands of field managers. Many of these managers start in entry level, hourly positions and move up the ranks, and most don’t have a background in human resources to guide them through the recruiting, interviewing, and hiring process. These managers need tools to walk them through the full talent acquisition process so that their time is spent appropriately, the highest quality candidates are hired, and nothing is left to chance with a “post and pray” recruiting strategy.
Talent Acquisition and Talent Management in the service industry’s heavily hourly dominated workforce is not the same as Talent Acquisition and Talent Management in traditional, white collar, office environments. Hiring and managing employees in those two worlds is like night and day. Recruiting and hiring in the service industry includes mass hiring, extremely high turnover (numbers that other industries have never experienced), and very diverse workforces- including diverse ethnicities, diverse educations, and diverse backgrounds.
One question, what is the hardest part about dealing with the retail industry’s workforce? Answer, massive amounts of turnover and finding the right hire.
We all probably go to the grocery store at least once of week. While you’re going from aisle to aisle looking for your next delicious meal, have you ever thought, who stocked these very organized shelves or who is the nice gentleman in the deli department? The world of hiring in the Grocery store space is very unique. According to Fooddrive.com “Grocery turnover is somewhere about 60% and many stores are reporting that it’s harder and harder to find people who want to work in food retail.” (https://www.fooddive.com/news/grocery--why-is-hiring-and-retention-a-challenge-for-grocery-stores/437896/). So, what creative hiring techniques should grocery store owners and operators use to attract top talent?
Maintaining organizational consistency and building a strong employer brand can be one of the toughest challenges when operating across a decentralized work environment. Subtle changes in your approach to talent management and operations can combat the tendency for a dispersed workforce to lose touch with the company culture.
Franchising has been around for decades to help expand businesses. From fast growing, up and comers to well established, mega national brands, the franchisee/franchisor model can be seen from restaurants, retail stores, and hotels to gyms, cleaning services, home health, and beyond.
The typical employer-employee relationship is under threat. Once, job seekers prioritized regular hours, a dependable salary, stability, and benefits. Now, job seekers are increasingly comfortable working as contractors, vulnerable to the winds of business but enjoying personal choice.
In today’s day and age, it seems as if social media rules everything— It might be sad to say, but true. It used to be that word of mouth, television, newspapers, radio stations or billboards got the word out about discounts, events, savings, etc. but with the improvement of smartphones, those days are long gone.