The double digit growth in e-commerce sales this year is also influencing hiring levels. Nineteen percent of retailers say they will hire fewer seasonal staffers in stores this year due to the increase in their online sales. This decline may be offset by the 19 percent that say they will hire more seasonal workers in distribution centers to support the uptick in online orders.
Hay Group’s survey, in its fifth year, analyzed responses from 21 major U.S. retailers including Charlotte Russe, Coldwater Creek, DSW, Macy’s, Michael’s Stores and Pier 1 Imports in order to understand retailers’ plans for the 2011 holiday season.
Among the highlights from the September 2011 Hay Group survey:
Seasonal Jobs Remain Highly Competitive. While a majority of retailers (63%) say they are seeing a steady level of seasonal job applicants, 21 percent say they are seeing between 5 and 25 percent more applicants than last year. This makes for an extremely competitive environment, considering that 43 percent of retailers in the 2010 survey reported an uptick in applicants from the prior year. The quality of applicants also appears to be on the rise, with 17 percent of respondents saying the candidate pool is better this year than in 2010.
Pay Gap Shows Retailers Favor Permanent Staffers. Most retailers (76%) say their ratio of permanent to seasonal workers is about the same as last year, but 19 percent are hiring fewer seasonal and more permanent workers this season. Pay rates for seasonal workers are largely even with 2010, but 19 percent plan a modest uptick of $.05 - $.30. Still, 48 percent note that they pay seasonal workers less than permanent workers in the same position, compared with 25 percent last year.
Moderation Seen in Promotion Plans. Retailers have hit a threshold when it comes to discounting. An overwhelming majority say they are not planning to offer deeper discounts on Black Friday (89%) or Cyber Monday (94%) this year. The timing for discounting also continues to be spread throughout the season. While 78 percent say the timing for holiday promotions will remain consistent with 2010, 22 percent say they will begin earlier this year. A majority (63%) plan to start promotions in November, but some early birds plan to begin in October (13%), September (6%) and even August (6%).
“The market is tough for seasonal job seekers, but at a macro-level, we have been seeing an improvement in hiring. For the first time in years, retailers are worried about turnover and are working harder than ever to create engaging environments at the store level – for both customers and associates,” said Maryam Morse, National Reward Practice Leader of Hay Group’s Retail practice. “Retailers are closely scrutinizing margins but are hopeful that strong holiday sales will help accelerate growth largely through e-commerce and global channels.”
