Lack of retail workers could create a crisis for Target and Macy’s

Target is hiring 120,000 workers this holiday
season.
Associated
Press

• Brick and mortar retailers are facing a staffing crisis as
  they enter the holiday season. 
• According to the Bureau of Labor Statistics, there
  were 757,000 retail job openings across the country in
  July, which is about 100,000 more than the same time a year ago.
  The number of openings surpassed the number of hires from
  March through June for the first time in a decade, The Wall
  Street Journal
  reported on Monday.
• As a result, retailers have been forced to offer more
  attractive compensation and benefits to encourage workers put
  off by part-time jobs. 

The holiday season is creeping closer but some of America’s
biggest retailers could find themselves understaffed. 

According to the Bureau of Labor Statistics, there
were 757,000 retail job openings across the country in
July, which is about 100,000 more than a year ago.
The number of openings surpassed the number of
hires from March through June for the first time in a decade, The
Wall Street Journal
reported on Monday.

Target, JCPenney, Kohl’s, and Macy’s are all on the hunt
for seasonal workers but low unemployment rates combined with
people wanting full-time jobs, means that there isn’t much supply
to meet the demand.

“There’s going to be a war for retail talent,” Andrew
Challenger, vice president of outplacement firm Challenger, Gray
& Christmas told The Journal.

The wheels are already in motion. Kohl’s and JCPenney
kicked off hiring at the beginning of the summer and on Thursday,
Target announced it was looking for 120,000 workers this season,
up by 20% from the year before. 

With thousands of part-time jobs needed to be filled,
retailers are realizing that they need to offer more incentives
to attract workers. 

“With so many companies looking to hire tens of thousands
of seasonal employees, employee engagement needs to be
put first,”
David Mallon, chief analyst at Bersin,
Deloitte Consulting wrote in an email to Business
Insider.  

Kohl’s has announced 15% discounts and “associate shopping
days” for seasonal workers. JCPenney
is
 offering some workers paid training, paid
time off, and even making some eligible for 401(k)
benefits.

Macy’s, who is looking to hire 80,000 workers for this
holiday season, said its
part-time workers will be eligible for its “Path to Growth
Incentive Plan,” which awards employees a quarterly bonus based
on performance. 

“We prepared for this,” Jeff Gennette, Chairman and CEO of
Macy’s said at the Code Commerce conference in New York on
Monday. “With record low unemployment you better have a
plan.”

Gennette explained that the incentive program has not only helped
to bring down the turnover rate of staff currently work in stores
but is also making it more appealing for new workers to join the
team.

“I don’t think this will be an issue for us,” he boldly
said.