LOS ANGELES--(BUSINESS WIRE)--As retailers prepare for the competitive holiday shopping season, they are putting more emphasis on their customers’ in-store experiences and are making hiring decisions that reflect that trend. That's according to a new Korn Ferry (NYSE:KFY) retailer survey.
The survey of nearly 20 major U.S. retailers representing nearly 1 million employees and $1.2 billion in sales took place in September 2018.
It found that nearly 15 percent of retailers are looking for employees who better align with brand culture, and 21 percent say they are putting a greater emphasis on employees who can help create strong in-store experiences for customers.
The trend of creating a strong in-store experience that reflects a retailer’s brand is boding well for those workers seeking permanent employment. Nearly two-thirds (64 percent) of retailers say that compared to last year, they expect a higher ratio of permanent to seasonal employees. The top reason cited (25 percent) is that retailers are giving their permanent employees more hours.
“Retailers are increasingly focusing on creating a unique in-store environment, where customers can see and feel the merchandise, which helps them relate more to the company’s culture and ethos,” said Korn Ferry Senior Partner Craig Rowley. “Customers may decide to go home and make their purchases online, but that in-store experience will create greater brand affinity.”
The survey shows that while in-store experiences may be more of a focus this year than in recent years, retailers are still staffing up to respond to e-commerce orders, with 55 percent saying they are hiring more seasonal staff in distribution centers due to .com sales.
“Clearly, this year’s holiday retail season will have an omni-channel focus, where both in-store and online buyers will be critical to sales success,” said Rowley.
Unfortunately, filling retail roles may be a challenge. Sixty-seven percent say recent hikes in minimum wages and market increases in the retail industry have made hiring seasonal staff more difficult, and nearly a fifth (17 percent) say they will see 5 percent to 10 percent fewer applicants this year. One reason that there are fewer seasonal applicants may be that nearly a fifth of respondents say they pay seasonal employees on average 5 percent to 10 percent less than permanent employees.
“In this competitive market for qualified candidates, it’s important that retailers convey to prospective and current employees how their organization provides a better culture and work environment than other retailers,” said Rowley.
Despite potential hiring challenges, retailers are expecting solid sales, with a third expecting a 5 percent to 10 percent increase in sales in 2018. None believe they will see a decrease in sales this year. The survey found that retailers are also shifting their discounting strategy, with 36 percent saying they plan on cutting discounts this year.
“Retailers are cautiously optimistic that the economy will stay strong into the holiday season, which will help create solid sales figures,” said Rowley.
Survey Results
How much of an increase/decrease in total sales do you predict this
holiday season over last year?
Over 20% increase in sales 0.00%
11
- 20% increase in sales 0.00%
5 - 10% increase in sales 33.33%
About
the same 66.67%
10% decrease in sales 0.00%
20% decrease in
sales 0.00%
Over 20% decrease in sales 0.00%
Compared to last year, have the qualifications you're looking for in
candidates changed?
Yes, I'm placing a greater emphasis on
in-store retail experience 21.43%
Yes, I'm placing a greater
emphasis on online retail experience 0.00%
Yes, I'm placing a
greater emphasis on fulfillment experience 7.14%
Yes, I'm placing a
greater emphasis on merchandise handling experience 0.00%
Yes, I'm
placing a greater emphasis on employees who align with brand culture
14.29%
Yes, I'm placing a greater emphasis on employees with lower
salary expectations 0.00%
Yes, I'm placing a greater emphasis on
employees who have more scheduling availability 7.14%
No, my hiring
preferences have not changed since last year 50.00%
If you plan to hire fewer seasonal workers this year, what is the
primary reason?
Minimum wage and or market increases 0.00%
Reduced
store sales plan requiring fewer people 8.33%
Reduced
hours/staffing levels compared to last year 0.00%
Giving permanent
employees more hours 25.00%
N/A – I plan to hire the same or more
seasonal staff this year 66.67%
Compared to last year, what is your ratio of permanent to seasonal
store employees?
Fewer permanent workers, more seasonal workers
9.09%
About the same 27.27%
Fewer seasonal workers, more
permanent workers 63.64%
Compared to last year what is your permanent/normal store employee
staffing level?
Lower than usual 0.00% 0
At the normal
level for our stores 81.82%
Higher than usual 18.18%
How have minimum wage increases and or market increases in the retail
industry impacted your seasonal hiring?
Hiring seasonal staff
is now easier 8.33%
Hiring seasonal staff is now more difficult
66.67%
The trend has not significantly impacted our ability to hire
seasonal workers 25.00%
Do you currently have an omnichannel strategy that has been
communicated to the organization?
Yes 42.86%
No 28.57%
Omnichannel
strategy is still in progress 28.57%
How many seasonal workers did you hire last year?
< 1,000
15.38%
1,001 - 5,000 38.46%
5,001 - 10,000 7.69%
10,001 -
30,000 23.08%
30,001 - 60,000 0.00%
> 60,001 15.38%
How many seasonal workers do you plan to hire this year?
<
1,000 15.38%
1,001 - 5,000 38.46%
5,001 - 10,000 7.69%
10,001
- 30,000 23.08%
30,001 - 60,000 15.38%
> 60,001 0.00%
Were you able to hire all the seasonal employees in your plan last
Holiday Season?
Yes 76.92%
No 23.08%
On average, compared to permanent workers in the same position, how
do you pay seasonal workers?
Over 20% more 0.00%
11 - 20%
more 0.00%
5-10% more 9.09%
About the same 72.73%
5-10%
less 18.18%
11 - 20% less 0.00%
Over 20% less 0.00%
What percentage of seasonal workers do you expect to hire on a
permanent basis after the holidays?
0% 0.00%
1-5% 9.09%
6-10%
45.45%
11-15% 0.00%
6-20% 18.18%
21-25% 27.27%
26-30%
0.00%
31-35% 0.00%
36-40% 0.00%
41-45% 0.00%
46-50%
0.00%
50% 0.00%
What are you MOST concerned about negatively impacting sales this
holiday season?
General economic conditions 50.00%
Unemployment
rates 16.67%
Federal, State and/or Local Regulations 0.00%
Rising
interest rates 0.00%
Supply chain disruptions 0.00%
IT systems
capability to handle orders, etc. 0.00%
Competition from e-commerce
25.00%
Other, please explain 8.33%
How does the quantity of seasonal applicants compare to that of last
year?
Over 20% more applicants 0.00%
20% more applicants
0.00%
10% more applicants 8.33%
About the same 75.00%
5-10%
fewer applicants 16.67%
11 - 20% fewer applicants 0.00%
Over
20% fewer applicants 0.00%
Compared to last year, how is the quality of seasonal associate
applicants?
Significantly better 0.00%
Better 9.09%
About
the same 81.82%
Worse 9.09%
Significantly worse 0.00%
Has the growth in e-commerce sales impacted your seasonal staff
hiring?
Yes, we are hiring more seasonal staff in distribution
centers due to .com sales 54.55%
Yes, we are hiring less seasonal
staff in stores due to .com sales 0.00% 0
No, .com sales have no
impact on seasonal staffing (in the DCs or stores) 27.27%
Not
applicable - we have not seen growth in e-commerce sales 0.00% 0
Other,
please explain 18.18%
Will you be utilizing your mobile shopping platform to help drive
sales during the holiday season?
Yes 81.82%
No 9.09%
N/A,
we do not have a mobile platform 9.09%
Do you count e-commerce sales in store revenues?
No,
e-commerce is counted separately 18.18%
Yes, e-commerce sales
fulfilled in a store are counted as revenue 45.45%
Yes, e-commerce
sales made in a stores trade area are counted as revenue 27.27%
N/A
9.09%
Do you have formal training programs in place for seasonal staff?
Yes
81.82%
No 18.18%
Has your omnichannel strategy impacted the training you provide to
your seasonal sales staff?
Yes 66%
No 35%
On average, what are this year's anticipated hire rates for seasonal
employees compared to last year?
$.05-$.15 less 0.00%
About
the same 27.27%
$.05-$.15 more 9.09%
$.16-$.30 more 27.27%
$.31-$.60
more 27.27%
$.61-$.90 more 0.00%
$.91-$1.10 more 0.00%
>$1.10
more 9.09%
Are you trying to cut back on discounting overall this year?
36
% yes
64 % no
About Korn Ferry
Korn Ferry is a global organizational consulting firm. We help clients synchronize strategy and talent to drive superior performance. We work with organizations to design their structures, roles, and responsibilities. We help them hire the right people to bring their strategy to life. And we advise them on how to reward, develop, and motivate their people.
