A “war for workers” is underway among retailers, with big chains struggling to find enough employees as the holidays approach.

“Brick-and-mortar retailers are facing a staffing crisis as they enter the holiday season,” noted a story in Business Insider. The story notes that federal labor statistics show that there are 100,000 more retail job openings in 2018 than there were one year ago.

“Target, JC Penney, Kohl's, and Macy's are all on the hunt for seasonal workers, but the low unemployment rate, combined with people wanting full-time jobs, means that there isn't much supply to meet the demand,” the story notes.

The Wall Street Journal also noted the shortage of workers for retail employers, adding that retail employers are working on improving incentives for workers.

“Retailers have begun their annual push for holiday workers earlier than ever, raising pay and offering perks such as profit-sharing and paid time off for part-time associates,” the Journal article said. “They also are hosting recruiting marathons with the goal of hiring thousands of workers in a single day.”

Officials with Challenger, Gray and Christmas, an outplacement firm based in Chicago, confirm that many major retailers are reporting increases in hiring for this holiday season. Company officials say Target's recent announcement of 120,000 holiday hires is the largest holiday hiring announcement on record from a brick-and-mortar retailer.

“Retailers have been aggressively hiring seasonal workers since July to combat the tight job market. This holiday season will be a good time for workers who have had trouble finding employment or those who are discouraged or marginally attached to the labor force, as retail, transport, and warehousing jobs will be plentiful,” said Andrew Challenger, vice president of Challenger, Gray and Christmas.

Target's goal could increase its retail workforce by 20 percent. Delivery giant United Parcel Service plans to hire more workers this year as well; FedEx said it hopes to hire 10 percent more workers than last year.

The numbers illustrate that brick-and-mortar stores are not the only place more workers are needed. Crain's Detroit Business notes that rising online sales will drive new hiring as well.

“Online sales are fueling much of the demand. Target said it plans to almost double the number of hires that are assigned to help fulfill digital orders, and Macy's said more than one-quarter of its 80,000 hires this year will work to fill web orders,” the article noted.

Employee discounts are another perk that retailers often offer seasonal employees. However, some experts say retailers can't just rely on higher wages and discounts.

Stefan Midford, president and CEO of Capango, a mobile-first retail job-matching platform that connects job seekers with job offers, recently commented in the Toledo Blade about job seekers in the current market. “You have to be amazingly fast now and respond to applicants quickly. They've got options on where they want to work so speed is important,” Mr. Midford said.

Midford said his website asks seasonal retail applicants what areas of a store they'd like to work in; whether they prefer days, nights, weekends; and if they prefer contact with consumers or in the back end of a store. He can then match the job seeker with an employer based on their mutual preferences.

That effort to meet the employee halfway is crucial, Midford said. “This year clearly is going to be the toughest year for recruiting that we've seen in a decade. There's no doubt about it,” Mr. Midford said. “Anybody who thinks they can win simply by paying a quarter more than the guy across the street is going to lose.”

Instant Insights /

Seasonal workers reaping the benefits of hot holiday hiring

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