It’s Still a Candidate’s Labor Market, but Worse

The world of retail was already going through something of a paradigm shift even before the COVID-19 crisis changed everything. Facing an existential threat from the world of ecommerce was challenging enough, but now a transforming labor market is compounding those issues.

When lockdown measures were first introduced, many retail outlets – not including those selling food, medicines, and other essential goods – found themselves forced to shutter their stores and send employees home for an indeterminate amount of time – with nothing but government stimulus checks to help keep their heads above water.

Whereas many office workers were able to continue working their jobs from home, this wasn’t an option for retail staff, and it’s significantly changed the labor market in the space – perhaps permanently.

Shifting Expectations

The number of retail employees plummeted significantly at the top end of 2020 as lockdown restrictions came into effect and, while many have now returned to work, there is still a massive discrepancy between the number of retail staff needed and those currently employed.

This has created a labor market which is heavily skewed in favor of the candidate. Much like we’re seeing over in the hospitality industry, there are more positions available than there are candidates to fill them, meaning those looking for a retail position have more power to pick and choose which companies they work for.

What we are seeing are a demographic of workers who have perhaps never considered a career outside of retail before. A high proportion of retail workers enter the profession at an early age – perhaps as a part time job – but for whatever reason end up remaining in the industry into their adulthood and right through to retirement. Because they have never known another form of employment, their expectations of work and the relationship workers have with their employers is limited to the retail space.

However, during the pandemic, these people have seen the benefits workers in other fields have access to. They have seen office staff continue to work and earn right through the pandemic. They have also seen the flexibility available to those people, which is often not open to them and the shift patterns of retail work. For example, people working from home are more effectively able to balance things such as work and childcare – something which is incredibly difficult for people working in retail stores.

And then there’s the abuse. It’s fair to say that the pandemic has brought out its fair share of terrible behavior. Retail workers already had to deal with difficult, rude, and obnoxious customers even before COVID, but we have definitely seen a rise in abusive behavior over the last two years. Anti-maskers and conspiracy adherents have been regularly causing scenes in retail shops when asked to observe the most basic safety precautions, and it’s not been unusual to see these petulant outbursts turn violent.

During lockdown, many of these employees would have had the opportunity to try their hands at other roles in other industries – there has been a sharp rise in people doing courier work for example – and may have been successfully lured away by the advantages of these roles.

Is There a Solution?

Not an easy one, no. If retailers want to attract talent back into their stores, they are going to need to learn from the lessons of the pandemic.

Making shift patterns less rigid and giving the staff more flexibility to enjoy their lives outside of work – or even take care of basic essentials such as childcare – could be one way of making retail more attractive. Giving staff the support they need when customers turn aggressive or nasty such as by employing extra security guards and enforcing things such as mask wearing at the door, so employees don’t have to confront them directly could be another possible answer.

Obviously, a lot of this will rely on the size and scope of the retail operation in question, but those which have the resources to do so should consider changing the way they treat staff and the benefits they make available to them or risk an ever-dwindling workforce. COVID is likely to still be with us for a while yet, especially with the emergence of the Omicron variant, so changes need to be made now for the future health of the retail business.

Final Thoughts

There are no simple answers to the retail employment crisis. However, if brands can keep in mind that this is now a candidate’s market and only the brands which are able to offer the most attractive employment packages are likely to succeed in bringing the best people onboard.

The candidate’s labor market is sure to be part of the conversation at HR Retail 2022, taking place in April at the Hyatt Regency Austin, TX.

Download the agenda today for more information and insights.