As the holiday shopping season approaches, a recent survey by UKG reveals that retailers are generally optimistic, with 87% feeling prepared for the surge. The survey gathered insights from over 500 retail executives and managers across the U.S., showing that 88% of retailers have already begun hiring for the seasonal rush, including 63% who started before October.
Despite this optimism, retailers face significant hurdles, particularly concerning labour shortages. A striking 85% report that these shortages hinder their ability to meet customer expectations, with 71% admitting to being understaffed for one to three days each week. In response, 81% are cross-training existing employees, and 71% are incentivising staff to take hard-to-fill shifts.
While 84% of retailers are hiring seasonal staff to accommodate increased demand—down from 96% last year—many are still preparing for heavy store traffic. Notably, 55% will open on Thanksgiving, and 71% plan to extend hours to capture pre-Black Friday shoppers.
The survey highlights a significant gap in workplace flexibility, a key concern for frontline employees. Although 89% of retailers recognise that associates desire more flexible schedules, only 63% offer employees the ability to manage their shift preferences. A UKG global study indicates that flexible hours and self-scheduling are the most sought-after benefits among retail workers.
Technology is crucial in enhancing the employee experience, with 92% of retailers that utilise such tools reporting improved employee satisfaction. However, only 55% currently provide comprehensive technological solutions for scheduling and communication.
“Retailers remain resilient despite ongoing staffing and economic challenges,” said Robert Klitsch, UKG’s industry marketing director for retail and hospitality. “To create the best shopping experience, leading retailers must first focus on creating the best associate experience steeped in flexibility, communication, and choice.”