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Retail sector on verge of 'severe staffing crisis'

Retail
/ 12th April 2022 /
George Morahan

The retail sector is on the verge of a severe staff crisis akin to that currently being suffered in the hospitality industry, with job vacancies having more than doubled in the past year, according to Excel Recruitment.

Job postings for the retail sector have been on a consistent upward trend over the past year, increasing from 1,578 in February 2021 to 4,258 in February 2022, but there are now fewer jobseekers per vacancy now than prior to the pandemic.

"The industry data paints a stark picture – between 2019 and 2021, the number of retail job seekers per retail job vacancy had been increasing year on year," Aislinn Lea, director of fashion and non-food at Excel Recruitment said.

"However, since then it has dipped significantly and in February 2022 there were 39 job seekers per job, down from 78 job seekers per job in February 2021.

"What’s more, the number of employers with active retail job vacancies has now nearly tripled in the 12 months to February 2022 when it stood at 1,360 employers -- up from 488 employers in February 2021."

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There were 164,056 job seekers in retail in February compared to 152,087 in March 2019, 150,134 in February 2020 -- a month before the first public health restrictions were enacted due to Covid-19 -- and 122,77 last February.

Meanwhile, the number of employers with active retail jobs has nearly tripled over the past year, increasing from 488 last February to 1,360 this February, as retailers who likely let employees go during the pandemic look to staff up again as business returns.

Lea added that many people who were left out of work or required to work reduced hours during the pandemic have decided to change careers, upskill in their current industry, or strive for a better work-life balance, while the sector has also missed out on two years of new candidate intakes, further exacerbating employers' staffing troubles.

Retail
Excel Recruitment has warned that the retail sector is facing a staffing crisis akin to that being suffered by the hospitality sector. (Pic: Getty Images)

Many employers that spoke with Excel are also "disheartened" because increasing pay to attract and retain workers is "not feasible now," but the recruitment company said it was "seeing real changes is in benefits, employer flexibility, and better working conditions.”

"Candidates are looking for more flexibility so that they can plan their home lives accordingly. The introduction of every second weekend on/off is proving to be very popular amongst some of our retail partners," Lea commented.

"Annual leave is another area where improvements can be made. We appreciate that the statutory entitlement is 20 days plus bank holidays. However, keeping in tune with trends regarding work-life balance and the fact that retail requires more flexibility, the need to offer more than 20 days is a must in retail management. We’re seeing a shift to 23-25 days’ holidays.

"In addition, we are finding that incentives and benefits that focus on employee wellbeing, such as Employee Assistance Programmes are increasingly attractive - where staff are supported with free counselling services for work-related or personal problems.

"Bonus schemes have become a benefit that not many managers take seriously. To work well, management needs to ensure bonuses are based on performance and sales but it is also extremely important to be more specific in outlining bonus details and conditions."

Excel has also suggested "softer incentives" such as referral schemes for new staff, loyalty bonuses, brand perks and discounts, uniform allowances, the Bike to Work scheme, birthdays off, gym memberships, and lunch allowances.

"Creating these incentives is one element, but the next important step is to include these benefits and perks in any company vacancies or job advertisements so that potential employees can consider them alongside the job role," Lea said.

"Candidates are looking for more, but it’s not just about money – the focus is increasingly about enjoying one’s career while having time to enjoy your life outside of work too."

(Pic: Getty Images)

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