The labor shortage reached a critical point for grocers in 2021. According to a report by SHRM, nine out of 10 employers struggled to fill open positions -especially hourly, entry-level and mid-level non-managerial roles.
In September, TimeForge conducted a joint labor market study with partner North Country Business Products (NCBP) to better understand how grocers have been affected by the labor shortage, and what strategies seem to work best in overcoming the challenges.
Here are 5 practical tips based on our findings and experiences working with grocers over the past 18 months:
- Ask for employee referrals According to the labor market study from TimeForge and NCBP, employee referrals are an effective strategy for grocers. Seventy percent of survey respondents indicated that they were successfully utilizing employee referrals to combat their hiring issues. Referrals are especially effective if the business has a positive company culture where employees enjoy coming to work.
- Invest in current employees first Sixty percent of grocers we surveyed indicated that higher wages were an effective strategy for dealing with the labor shortage. However, employers should raise wages for their existing employees before hiring new staff at those rates. Otherwise, they risk losing their most experienced and valuable team members over compensation issues.
- Take steps to appeal to a younger workforce The concerns of GenY and GenZ differ from previous generations, and those differences are important when drafting recruitment pitches and job postings. When hiring, grocers should highlight their benefits packages and any diversity and social inclusion initiatives.
- Streamline the hiring process Over 70 percent of grocers indicated that hiring was their primary challenge in 2021. An easier, faster, and more efficient hiring process can alleviate some of the burdens. For example, a hiring and onboarding system that automatically pushes open job positions to Indeed can save grocers time and greatly extend their reach.
- Continue focusing on employee retention Grocers should continue to focus on employee retention this year. Higher wages, flexible schedules, and training and professional growth opportunities are all ways employers can invest in their workforce to improve employee retention and satisfaction.
In sum, grocers should invest in their current employees and in improving their company culture, keeping in mind what a younger workforce looks for in employment. They should then seek employee referrals to capitalize on the positive company culture they’ve built. Finally, grocers should streamline their hiring process to make it easier to onboard new staff but shouldn’t forget about ongoing employee retention.
To help with your labor management, contact Audrey Hogan with TimeForge at audrey@timeforge.com or (806) 777-8227.
