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2011 Holiday Hiring |
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Jennifer P. Zarzosa, MBA |
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Seasonal job hiring will be roughly
the same as last year, with few major retailers slightly increasing hiring.
According to the National Retail Federation, retailers are expected to hire
only 480,000 to 500,000 seasonal workers this holiday season, which is
comparable to the 495,000 workers hired last year. Employment gains will not
reach pre-recession levels, which averaged roughly 720,000 extra holiday hires
from October through December.
There are many contributing factors
to the decrease in seasonal hires. Many retailers are dealing with higher costs
related to rent, energy, and rising wholesale prices. Retailers have roughly
160,000 more workers than last year’s holiday season. Retailers also are
hesitant to hire more employees, as there are several signs that consumer spending
is dipping. According to Challenger, Gray & Christmas Inc., even a forecast
of strong holiday sales would not motivate most retailers to hire additional
personnel.
A recent survey of major U.S.
retailers by the Hay Group found that 68% expect sales to be higher than last
year. Yet, most retailers plan to hire the same number of seasonal workers as
last year while one-fourth of respondents plan to reduce the number of seasonal
hires, indicating retailers are opting to decrease labor costs in order to
increase promotions and services offered.
Best Buy will be hiring only 15,000
seasonal workers, a decrease from last year’s 29,000 hires. The major retailer
plans to offset this decrease in holiday hiring by increasing its regular
staffers’ hours to compensate for fewer seasonal workers. It also plans to
increase services, such as free tech support and a longer window for product
returns, during the holidays. Additional services coupled with unique
promotions like ‘deals under $100’ are certain to boost sales.
The exponential growth in e-commerce
sales this year is also influencing hiring levels; 19% of retailers believe
they will hire fewer seasonal in-store staffers this year due to increased online
sales. This decline may be offset by the 19% who say they will hire more
seasonal workers in distribution centers to support increased online orders. In
fact, Toys R Us will have roughly 40,000 employees for both their stores and
distribution centers, and Macy’s will hire roughly 78,000 temporary workers—an increase
of 4% from last year—for its stores, call centers, distribution centers, and
online fulfillment centers.
Seasonal job seekers should target
Wal-Mart and Target, which should perform well as cost-conscious consumers
increase this holiday season. Target is implementing innovative mobile
techniques to lure job seekers; 170 of its stores are advertising holiday
employment via text messaging. However, job seekers will have to look beyond
the sales clerk positions to jobs on the floor for overnight stocking and even
in shipping facilities. Such jobs can help support families by supplementing
household income and providing employee discounts.


