Introduction

The holiday season has been becoming very busy for many retail companies, especially in the U.S. However, recent studies have shown that in the last few years, retail stores have been finding it more challenging to hire enough employees for the holiday season. In this article, written for HBR Press, Jennifer Moss explains how companies have been adjusting to the low number of seasonal employees and how employers can do their part as managers and keep these employees engaged. 

Keep reading to learn about what tactics managers can use to promote productivity among their employees who can use some extra inspiration during the holiday season.

In 2018, there have been more seasonal jobs available in the U.S. than there are people to fill them. Roughly 23% of retailers weren’t able to hire all the temporary workers they wanted for the 2017 holiday season, according to global consulting group Korn Ferry. With the low unemployment rate, they predict 2018 will prove itself to be even worse.

Target is slated to hire approximately 120,000 seasonal team members this year — a 20% increase over last year, Macy’s planned to hire 80,000 people and Kohl’s expects to add 90,000 people to work through the New Year, compared with 69,000 people in 2016. With consumer confidence up and unemployment low, this generates the perfect conditions for a massive talent war.

In their bid for dominance of the seasonal employment battle, companies are offering more robust compensation plans, perks, and other retention tactics to engage new and existing staff. Pay is obviously one of the biggest offerings this year in the U.S. retail sector, with average seasonal pay jumping by a massive 54% since last year at this time.

In their 2018 Holiday Hiring Outlook, Challenger, Gray & Christmas Inc., reports that Target and Macy’s are offering better perks for seasonal workers than they have in recent years. Target will now pay $12 per hour. After an October 2017 minimum wage increase to $11, the company plans to have its minimum wage at $15 by 2020 and will offer more flexible hours and special discounts for employees. Macy’s will offer target-based sales bonuses, and Kohl’s is giving their staff a 15% discount and special shopping days. Amazon already raised its minimum wage to $15 an hour for its 250,000 U.S. employees this year, and J.C. Penney even held raffles for vacation packages to lure seasonal hires to work for them.

Some retail companies are giving existing full-time staff the option to work additional overtime hours and receive overtime pay. This is attractive for staff who want to earn extra money at one of the most expensive times of the year. Walmart, the nation’s largest retailer, is in year two of their experiment. In years past, Walmart would hire seasonal employees by the thousands while existing employees complained about being underemployed. So far, giving more hours to their existing staff is working well. “We want to make sure our associates have the first chance at getting these extra hours,” said Walmart spokesman Kory Lundberg in a Washington Post article.

With retail employees holding the upper hand this season, it’s even more important for corporate retailers to engage and retain their staff. Although increasing hourly pay is great for attracting seasonal workers, that may not be enough to keep seasonal staff productive during the most wonderful time of the year for retailers — a time that makes up about 30% of annual sales according to the National Retail Foundation. Here are a few tactics managers can use to engage their teams and ensure greater productivity:

Go beyond standard onboarding procedures. Seasonal staff often feel like they are being thrown into the fire on day one, which can trigger a decrease in self-efficacy — a belief that they lack the tools to do their jobs well. When employees don’t feel properly trained, this can lead to disengagement and unhappiness at work. However, if employees trust that they can ask questions of their managers during moments of uncertainty in their roles, this can make all the difference in terms of their psychological safety, and subsequently, their performance on the job.

It’s important to set staff up for success with a solid onboarding experience. And, there’s an added benefit to more thorough onboarding for seasonal staff: if managers increase psychological safety among their seasonal staff, they will increase occupational safety. In a paper published in the Journal of Applied Psychology, researchers found that manufacturing teams with greater authority over their work experienced fewer work-related injuries. So, take time to check in and give employees plenty of opportunities to ask questions in a fear-free environment. Provide a variety of ways to connect with managers and peers so people don’t feel put on the spot in a meeting. “Safety first” must extend to both physical and mental safety for the healthiest and most productive workplace experiences.

Treat everyone equally. Consider VANS, a lifestyle company that was once a tiny brick and mortar and is now a global brand celebrating its 50th anniversary. The company started with one shoemaker in Anaheim, California, but slowly, over time, created a cult-like following of skaters and snowboarders, making staff its customers, and customers its staff. Rob Hepplewhite, District Manager for VANS, told me: “The way I led my team was that everyone was served by the leadership team the same way, no matter the title, and no matter whether they were seasonal employees or not. When I have direct reports, I have never viewed them as ‘working for me’ … it was I who worked for them. That’s the approach that creates movements in culture, growth, development, and ultimately, customer value.”

Create brand ambassadors. Net Promoter Scores (NPS), although originally intended to measure customer loyalty and advocacy, soon morphed into an employee retention predictor (eNPS) by asking one very important question: How likely is it that you would recommend this company as a place to work? Seasonal workers are only at your company for a short time, but if you can make it a good time, they will become loyal advocates and customers after they leave. Employee ambassadors offer huge value. The more likely your employees would be to recommend your company as a great place to work, the easier time you’ll have recruiting strong candidates, due to an enhanced employer brand and more employee referrals.

Personalize perks. Even the biggest companies have small, decentralized teams — especially in retail, where departments can move with much more fluidity than the lumbering head office. Department heads can try these small but big tactics to create memorable moments with seasonal staff:

• Engage team members locally by volunteering in communities where employees reside;

• Bring in free, healthy food to break rooms — who doesn’t like free food?

• Create opportunities for staff to connect during breaks and even outside the workplace. Develop their relationships, because even if they are not staying past New Year’s day, it’s been shown that having a friend on the job improves performance.

• Finally, and this may seem simple, but it really does work — build up gratitude. Set up a gratitude wall so staff can be reminded why it feels so great to come in to work each day. All you need is a blank wall or canvas, sticky notes, and markers or sharpies. Research consistently demonstrates that grateful staff are more satisfied with their jobs and are subsequently more engaged and productive.

Use even a few of these tips and you’ll be winning the talent war — and you’ll have ambassadors who will shop at your stores, sing the praises of their experience, and most importantly, come back next year without necessarily requiring lures like vacations and discounts. Paying staff what they deserve is table stakes, but it’s the small, personal gestures that will win the talent retention battle in the end, because they build loyalty.

Conclusion

Employees appreciate small gestures from their employers to show gratitude and trust within the business. Over the last few years, businesses have established many techniques that they have been using to promote a positive work environment that will help keep their employees engaged. It is important for employees to feel prioritized and valued by their employers, as that is what will keep them coming back every holiday season!