Nearly one quarter (24%) of retailers expect a significant increase (5% or more) in year-over-year sales during the 2014 holiday season, while another 70% are predicting sales will be on par with the 2013 season. That’s according to the eighth annual retail seasonal hiring survey by global management consultancy Hay Group, which polled retailers collectively representing over one million employees and nearly $183 billion in revenues last year.
The cautious optimism around sales is reflected in companies’ seasonal hiring plans. While most retailers (70%) plan to hire staff at 2013 levels, the emphasis has shifted from seasonal to permanent workers, with 24% of companies planning to hire more permanent staff in 2014, compared to just 13% last season.
The most significant shifts for retailers in the 2014 holiday season can be found in omnichannel, which is changing the landscape for companies and impacting their holiday staffing strategies. Nearly half (47%) of retailers surveyed in 2014 have a clearly articulated omnichannel strategy, compared to only 14% in 2013.
“Retailers are stepping up to the omnichannel challenge this year in an effort to drive sales from what’s proving to be a very disciplined consumer,” said Craig Rowley, Vice President and Global Practice Leader for Hay Group’s retail practice. “The 2014 holiday season is likely to be a testing ground for many large retailers as they try to get a better grasp on what today’s consumer is going to buy, where they’re going to buy it and how they want to receive it.”
Hiring trends seen to date reflect retailers’ shifts to an omnichannel strategy. For example, Macy’s Inc. said that 3,000 of the 86,000 seasonal employees it plans to hire will be assigned to work in the fulfillment areas of Macy’s and Bloomingdale’s stores that are equipped to fill and ship orders directly to customers, as well as to support the in-store pickup service available in every location.
Only 6% of retailers say they do not have an omnichannel strategy, compared to 22% last year. Additionally, 59% of retailers said their omnichannel strategy has impacted the training they provide to their sales staff.
“Retailers can no longer settle for point-and-sell stockers when it comes to staffing their stores,” said Maryam Morse, National Practice Leader for Hay Group’s retail practice. “Consumers now expect a seamless shopping experience across channels. To respond to this demand, retailers must have well-trained and nimble in-store employees who can serve as true brand ambassadors, leading customers to the point of sale, regardless of where the product resides.”
Further demonstrating the impact of omnichannel on 2014 holiday staffing decisions, nearly three times as many retailers (24% vs. 9% in 2013), are focusing on hiring seasonal staff to provide support across multiple channels. To meet needs from increased ecommerce sales, 29% will increase seasonal staff levels in distribution centers.