UKG: Are Retailers Ready for the Holiday Shopping Surge?

Key Points:

• Fifth-annual UKG retail survey shows retailers are overall optimistic, with 87% feeling prepared for the holiday season

• 88% of retailers have already begun hiring for the holiday season, with 63% hiring before October

• Still, 85% of retailers say labor shortages impact their ability to meet customer expectations

• Greater schedule flexibility is the most desired benefit for associates, yet it remains a top challenge for retailers

As consumers prepare to hit their favorite stores to snag seasonal deals, retailers have ramped up staffing in preparation for another busy holiday shopping season. According to the fifth-annual survey on seasonal retail hiring trends from UKG, 88% of retailers have begun hiring for the expected seasonal surge, including 63% that began hiring associates before October.

“Retailers remain resilient and continue to rebound well, despite years of staffing, shopping, and economic swings. To create the best shopping experience, leading retailers must first focus on creating the best associate experience steeped in flexibility, communication, and choice”

While most retailers are feeling optimistic, with 87% saying they’re ready and prepared for the holidays, there are still several challenges to address to ensure a better experience for employees and shoppers alike — from overcoming recruitment hurdles to providing greater flexibility for the frontline workforce.

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The 2024 UKG retail report details findings from more than 500 retail executives and managers at U.S. retailers. Key results from this year’s UKG retail survey include:

• 84% of retailers are hiring seasonal employees to cover increased holiday demand, though that’s down from 96% in 2023.
• Retailers expect heavy store traffic, as 55% will be open on Thanksgiving to give consumers access to pre-Black Friday deals, and 71% say their stores will have extended seasonal hours.
• Despite hiring plans, 85% of retailers say labor shortages impact their ability to meet customer expectations, with 71% of retailers reporting they’re understaffed 1-3 days a week.
• To stabilize productivity amid staffing issues, 81% of retailers are currently cross-training employees in preparation for the seasonal surge, and 71% say they incentivize employees to pick up hard-to-fill shifts.
• 1 in 5 store managers respond to situations involving angry shoppers (i.e. “retail rage”) on a weekly basis.

Workplace Flexibility Can Help Solve Staffing Strife

Three-quarters of U.S. retailers report struggling to fill critical labor gaps in the past 60 days, though the consensus is more people want to work in retail¹ than in any of the years since the pandemic. Retailers aren’t just competing with other stores for talent, however. In the UKG survey, retailers cited competition with employers in other industries and the gig economy as top recruiting challenges.

As for retaining associates already on staff, scheduling flexibility remains a top focus for retailers. In the survey, 89% of retailers acknowledge frontline employees want more flexibility than their stores currently provide. From the employee’s point of view, flexible hours/self-scheduling — such as the ability to alter their start/stop time or having the choice to work in the evenings or on weekends — is the most desired form of workplace flexibility by retail associates, according to a separate UKG global study with perspectives from nearly 13,000 frontline employees and leaders.

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Fortunately, retailers are making progress in offering greater flexibility at work year over year, as 63% say their store employees have the freedom to manage their shift preferences, and 53% of retailers say they provide their associates the flexibility to swap shifts and/or self-schedule.

Using Technology to Enhance the Retail Employee Experience

Technology is helping enhance the work experience for retail associates, who want to manage their schedules, check their paystubs, look up their benefits info, and connect with other employees quickly and easily from any device. Yet, there is room for improvement: Just over half (55%) of retailers say they provide technology tools for communication, time and attendance, and scheduling.

Those retailers that are leveraging workplace technology report overwhelmingly positive results:

• 92% say technology enhances frontline employees’ experiences;
• 93% agree technology makes it easier for frontline employees to manage their work preferences and schedules; and
• 94% report technology provides their frontline employees mobile access to critical work information (e.g., schedules, time worked, time-off requests, benefits info).

“Retailers remain resilient and continue to rebound well, despite years of staffing, shopping, and economic swings. To create the best shopping experience, leading retailers must first focus on creating the best associate experience steeped in flexibility, communication, and choice,” said Robert Klitsch, industry marketing director, retail and hospitality, at UKG. “As consumers, we can also do our part — when you’re out at your favorite stores over the holidays, remember that much of the world is understaffed, so let’s be kind to those people who continue to show up.”