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If you’ve been waiting for the annual holiday hiring surge to pick up some part-time work, you’d better rethink your job-hunting strategy.
Most retailers can’t afford to recruit armies of seasonal help these days.
A survey by Aon Consulting found 44 percent of the leading U.S. retailers are hiring fewer seasonal workers this year than last. And 37 percent are keeping holiday hiring flat.
That leaves only 19 percent of survey participants who are increasing seasonal hiring this year. The Chicago research firm surveyed more than 100 major retailers for data in the survey that was released last month.
Staffing decisions are all about the bottom line. Retailers vividly remember last year, when holiday sales fell 3.4 percent to $442 billion, the first time holiday spending failed to grow since the National Retail Federation started tracking the statistic in 1992.
The Washington-based industry group is forecasting holiday sales this year will fall 1 percent below last year’s total.
Retailers can’t force shoppers to spend, but they can hold down costs. Interviewing job applicants takes time – already a scarce commodity for overworked managers. And training takes money.
Besides, many stores have cut hours for year-round employees who are happy to pick up more hours.
Meijer spokesman Frank Guglielmi said the Midwest discount chain offers part-time workers more hours this time of year. But the decision wasn’t driven by the recession, he said.
The Grand Rapids, Mich., company routinely keeps a relatively stable workforce.
“We don’t hire a lot of folks at the holidays,” he said. “Our business model hasn’t changed.”
Sweetwater Sound Inc. operates with the same philosophy.
The world-class music technology and equipment company sees its strongest sales each year in November and December. But staff numbers don’t surge then, said Jeff McDonald, Sweetwater’s human resources director. The company prefers to hire at “a very modest and healthy pace all year,” he said.
“We like to think we have that under control at all times and don’t go into panic mode in the fourth quarter,” he said.
Sweetwater’s sales were up in September and October compared to the same months of 2008. The company, which employs about 350, anticipates strong sales through this holiday season.
In past years Sweetwater hired some seasonal workers in its shipping department, but a strong crew and improved efficiency allowed the company to cut back to only one or two temporary warehouse workers this year, McDonald said.
Sears added four seasonal workers to its warehouse/receiving operation at its Glenbrook Square store this year, associate Phillip Haugabook said.
The retailer’s other departments have also hired several seasonal workers each. Haugabook didn’t have a total number.
Across the mall, J.C. Penney is hiring 100 part-time associates for the holidays, store manager DeAnna Ragan said last week.
The temporary work will be mostly on weekends and will help the department store cover expanded holiday hours, she said.
Ragan “absolutely” encourages job seekers to put in applications this week. Only about half the jobs have been filled.
Hobby Lobby, which added 10,000 square feet to its Coldwater Road store this year, hired five temporary employees for the holidays.
Steve Rubin, store manager, said it’s about the same number as in previous years. The additional workers represent about 10 percent of his workforce.
“We’re doing pretty well here,” Rubin said. “The cooler weather will help the seasonal sales.”
The Oklahoma retailer specializes in crafts, framing, silk flowers and art supplies. The added space allowed the store to add more furniture, including dressers, armoires and bookcases. Walmart stores normally hire additional cashiers for the holiday season, district manager John Wolf said. The average is 10 to 15 per store.
Part-timers also get the chance to work more hours, assuming they’re available when the store needs more help. Business picks up in the evenings and stays busy until midnight most weekdays and until 2 a.m. on Fridays and Saturdays, Wolf said.
The discount retail giant has been able to maintain its workforce because sales are still strong.
“We’ve been pretty fortunate,” Wolf said. “Normally, when the economy is bad, we do better.”
The retail industry has suffered during the recession, with numerous companies that had Fort Wayne area stores filing for bankruptcy, including Circuit City, Steve & Barry’s, S&K Men’s Store and Linens ’n Things.
More than 500,000 retail jobs were lost last year. And almost 90,000 more retail jobs were cut in the first eight months of this year, according to Challenger, Gray & Christmas Inc., a Chicago employment research and recruiting firm.
CEO John Challenger said the hiring surge could come later than usual this year as retailers wait to be sure they have the sales numbers to justify the added expense.
“The good news for retailers is if there is a need for late hiring, the labor pool is flush with qualified candidates who undoubtedly would be eager to earn some extra holiday spending money and take advantage of employee discounts,” Challenger said in a prepared statement.
Bob Lopes, Aon Consulting’s executive vice president, said retailers have good reason to be cautious. Consumer spending hasn’t fully rebounded because the job market hasn’t recovered.
“According to our survey results, there are a number of qualified candidates who will not find a retail job during the holiday season,” he said in a prepared statement.
But Lopes had some advice for job seekers.
“Those individuals should also consider the travel, hospitality and food service industries,” he said. “While these industries don’t receive the same type of attention as retail during the holiday season, they typically increase their hiring this time of year.”
