Inside the Heads of Job Seekers - ManpowerGroup

INSIDE THE HEADS OF JOB SEEKERS: U.S. Retail Candidate Preferences

This is a supplement to a series of reports by ManpowerGroup Solutions analyzing the results of a proprietary Global Candidate Preferences Survey.

Foreword As the nation’s largest private sector employer, retailers deeply understand and take pride in the space they hold in the marketplace for many job seekers. Whether an individual is looking for a first job, a second chance in the workforce or a highly skilled profession within a global supply chain, retailers provide opportunities for a wide range of career paths. The unique needs of retail job seekers combined with an increasingly competitive labor market make “Inside the Heads of Job Seekers: U.S. Retail Candidate Preferences” a valuable tool for retail employers seeking top talent. This independent workforce study is also a mustread for policymakers grappling with state and local workforce rules and regulations. Before considering new laws, lawmakers should consider what retail employees value in their employment. “Inside the Heads of Job Seekers: U.S. Retail Candidate Preferences” does an effective job detailing the desires of retail job seekers; specifically, that most retail job seekers prioritize flexibility and innovative work arrangements. As the marketplace for workers continues to evolve in a tech-forward manner, the report highlights how retailers can market job positions and optimize online recruitment processes to attract and retain the top job seekers. As the trade association representing the world’s largest and most innovative retail companies, RILA and our Human Resources Leaders Council would like to thank ManpowerGroup Solutions for delivering this thought-provoking research, which will help retailers and policymakers understand and optimize the needs of a modern workforce.

Evan Armstrong Vice President, Government Affairs Retail Industry Leaders Association (RILA)

Dave Pylipow Chair Human Resources Leaders Council

Charlie Piscitello Vice Chair Human Resources Leaders Council

1


Introduction It does not take an online retailer’s drone to deliver the message that the retail industry is undergoing seismic shifts in how people shop for and purchase products. Most retail employers are well aware that omnichannel retailing is quickly becoming the norm. During the first six months of 2017, the growth of online retailing has been blamed for more than 5,300 store closures in the U.S., triple the rate for the same period last year. Many cash-strapped retailers are looking to the holiday season to offset lagging revenues. As a result, seasonal retail hiring has never been more important. In the ManpowerGroup 2016-17 U.S. Talent Shortage Survey, sales representatives (including retail salespeople) ranked third in the United States among the top 10 hardest jobs to fill.2 They also ranked third globally as the most challenging positions to hire. Moreover, they have appeared on the top 10 list for 11 consecutive years.3 For decades, retailers have focused their energies on building brands that engage consumers. Now, they must shift their thinking to building employer brands. If the product bundle was the topic of retailing and marketing books in the past few decades, today’s management books should focus on the job bundle necessary to recruit top talent to the retail floor, warehouse and managers’ office. Just as products expand beyond traditional definitions of widgets for a price to include lifestyle branding and reputational association, jobs should be more than a job description and hourly wage. Now, jobs include all aspects of employer brand, such as a company’s social vision, philosophy on work-life balance and willingness to be a disruptive force for change. To better understand how employers can leverage global candidate preferences and perceptions, ManpowerGroup Solutions, the world’s largest Recruitment Process Outsourcing (RPO) provider, went directly to the source: candidates. In the Global Candidate Preferences Survey, nearly 14,000 individuals currently in the workforce between the ages of 18 and 65 shared what matters to them in the job search process. The survey was fielded in 19 influential countries around the world during the fourth quarter of 2016. In the United States, ManpowerGroup Solutions surveyed 1,384 candidates and special emphasis was given to the fastest growing industries: retail, healthcare, IT and financial services. The third in a series exploring U.S. candidate preferences by industry, this report provides new insight into the successful recruitment and hiring of retail candidates. The results reveal what is important to retail candidates, how process may cause them to self-select out of the pipeline and what employers can do to ensure the best prospects get to and through the application process.

Isadore, Chris. “Store Closings Have Tripled So Far This Year,” CNN, June 23, 2017. http://money.cnn.com/2017/06/23/news/companies/store-closings/index.html 1

2

ManpowerGroup, 2016-2017 U.S. Talent Shortage Survey, 5.

3

ManpowerGroup, 2016-2017 U.S. Talent Shortage Survey, 4.

2

Retail candidates want part-time work Retail candidates’ preference for part-time work may be linked to other responsibilities. Twenty-four percent of retail candidates are students. Retail jobs can provide the flexibility necessary to attend classes and schedule around homework assignments or test schedules. It is not surprising then that retail candidates also tend to be younger than average. One in three is a young millennial between 18 and 24 years old. Retail candidates also are more likely than average to be Baby Boomers with a preference for part-time work. At a life stage where they may be retired or semi-retired, Baby Boomers often appreciate the schedule flexibility and personal interaction that come with retail positions.

Candidates Preferring Part-Time Work by Industry

Retail Candidates by Age Versus U.S. Average

14%

Healthcare Financial Services

23% 22%

50+ Years

23%

Retail

22%

35-49 Years

Retail

26%

8%

25%

25-34 Years

Information Technology

U.S. Average

31%

5%

0

5%

10%

31%

18-24 Years

13%

U.S. Average

15%

20%

25%

30%

24% 0

5%

10% 15%

20% 25% 30% 35%

The allure of retail work is strongly linked to its part-time nature. Survey results show that nearly 40 percent of retail candidates are employed in part-time work. And that is by choice. Approximately one-quarter of retail candidates (23 percent) prefer part-time work — nearly twice as many candidates as in other industries. The strong linkage between part-time work preferences and retail candidates has powerful implications for employers. As opportunities to participate in the gig economy increase, retailers will be competing for workers with companies like Uber and Lyft. These companies provide the ultimate flexibility and autonomous work environments, allowing workers to decide when and how long to work.

Increased competition between call center and retail employees has tarnished the candidate pool for retailers. If you can do part-time work from home by turning your headset on and off versus maintaining a rigorous shift schedule, that may be more attractive to many candidates. Christopher Doherty – Vice President, Business Development ManpowerGroup Solutions 3


E-commerce is causing employers to shift resources from the sales floor to fulfillment. Both of these positions can satisfy a retail candidate’s need for part-time employment. Steve Frank – Managing Director, Client Delivery ManpowerGroup Solutions

Latinos buying into retail

Retail candidates are also significantly more likely to be Latino (24 percent versus the U.S. average of 17 percent). Latinos comprise an increasing number of young people. Fifty percent of U.S. population growth from 2010 to 2015 has come from Hispanics, and the U.S. Census Bureau predicts the U.S. Latino population to more than double within the next two generations.4 Between 2000 and 2015, Latino buying power grew 167 percent to $1.3 trillion.5 That means the importance of diversity in retail employment – from the sales floor to the customer service center – is only increasing. College enrollment rates among Latinos graduating from high school now outpace all non-Hispanic whites and African Americans. That means the supply of students with a need for part-time work will likely increase in the future. Savvy employers should take note.6

Flexibility is key Unlike other candidates where compensation is the No. 1 motivator for making career decisions, retail candidates rank type of work as the most important motivator followed by schedule flexibility at No. 2. Compensation falls to No. 4. Retail candidate preferences for part-time work are strongly reinforced by the fact that this group is so willing to trade compensation for flexible work schedules. In fact, retail candidates are more likely than average to switch jobs for greater schedule flexibility. As the ranking shows, retail candidates are not particularly brand driven, although they may have strong personal associations with the type of retailer they work for. Someone who enjoys hiking and camping may elect to work at a sporting goods retailer. A fashionista may gravitate towards department towards department stores or chain boutiques.

As employers focus on flexibility, many successful companies are looking into technology programs that enable workers to swap shifts through an app. Such systems are already being used effectively in restaurants. Wayne Crowley – Managing Director, Client Delivery ManpowerGroup Solutions

A.C. Nielsen, “From the Ballot Box to the Grocery Store,” 2016. http://www.nielsen.com/us/en/ insights/reports/2016/from-the-ballot-box-to-the-grocery-store-hispanic-influence-in-america.html 4

A.C. Nielsen, “From the Ballot Box to the Grocery Store,” 2016. http://www.nielsen.com/us/en/ insights/reports/2016/from-the-ballot-box-to-the-grocery-store-hispanic-influence-in-america.html 5

A.C. Nielsen, “From the Ballot Box to the Grocery Store,” 2016. http://www.nielsen.com/us/en/ insights/reports/2016/from-the-ballot-box-to-the- grocery-store-hispanic-influence-in-america.html 6

4

RANKING: Top Motivators of Career Decisions Among Retail Candidates

1

3

2

Type of Work

4

Benefits

Schedule Flexibility

Compensation

5

7

6

Opportunity for Advancement

Geography

8

Company Brand/ Reputation

Industry

Although two-thirds of retail candidates (65 percent) report that an employer’s brand is more important to them than it was five years ago, it is less important to them than it is for other candidates. Employers who can address flexibility needs are more likely to attract and retain the best and brightest candidates working in retail today.

Choice in shifts is key Where retail candidates distinguish themselves from other candidates, is in the type of flexible work arrangements they prefer. They are almost twice as likely to prefer the ability to choose their own shift schedule (31 percent versus 18 percent among U.S. candidates). The ability to work compressed shifts or a shortened work week also is of interest to them. Whether they are balancing schoolwork, caregiving, volunteering, another job or simply life’s frequent curveballs, retail candidates know what is important to them about their position: not to be rigorously locked into a schedule that further complicates their lives and, potentially, their job security.

Types of Schedule Flexibility Preferred by Retail Candidates 31%

Choice in Shifts

18% 19%

Full-time Work From Home

26% 16%

Flexible Arrival and Departure Time

21%

Help Wanted

55

5%

Sabbaticals or Career Breaks

2% 4%

Caregiving Leaves

1% 2%

11% 0

8%

Part-time Work From Home

14%

Compressed Shifts/Work Week

9%

Unlimited Paid Time Off

5% 10% 15% 20% 25% 30% 35%

U.S. Average

9%

0

Retail Candidates

5% 10% 15% 20%

In some markets, such as Minneapolis, Seattle and Portland, retail positions are challenging to fill. Increasing the salary base has not improved the situation. Greater flexibility could be the differentiator in filling open positions and encouraging candidates to switch employers.

INSIDE THE HEADS OF JOB SEEKERS: U.S. Retail Candidate Preferences INSIDE THE HEADS OF JOB SEEKERS: U.S. Retail Candidate Preferences

Melissa Hassett – Vice President, Client Delivery ManpowerGroup Solutions

Looking but not in the usual places Job search behaviors among retail candidates are significantly different than candidates in other industries. They are far more likely to use Indeed.com and Jobs.com. They are more than half as likely to use Snagajob.com, which limits its job postings to hourly positions and streamlines the application process. Rather than acting as an aggregator like LinkedIn, Snagajob.com has a per post business model that equates to fewer stale or outdated positions for users to sift through. For these reasons, Indeed.com, Jobs.com and Snagajob.com should be of particular interest to employers given their popularity with candidates and more retail-focused jobs.

Career Websites Visited by Retail Candidates In the Past Two Weeks 32%

Indeed

37% 23%

Jobs.com

35%

Monster.com

23% 25%

CareerBuilder

22% 25%

U.S. Average

30%

LinkedIn

Retail Candidates

24% 28% 24%

Craigslist

15%

Snagajob

23% 14% 13%

Glassdoor

11% 10%

SimplyHired 0

10%

20%

30%

40%

50%

60%

70%

80%

Retailers currently don’t capitalize on the reach and power of social media. There are a lot of missed opportunities to put your employer value proposition in front of candidates.

Kathryn West – Program Delivery Manager, ManpowerGroup Solutions

Retail candidates also are less likely to use employer websites for information; search engines are the No. 1 tool (used by 64 percent) utilized to find out information about a company. Employer review websites such as Glassdoor.com rank near the bottom of the resources they consult when making career decisions. These two facts may contribute to the fact that in a world of well-informed candidates, retail candidates are the least informed; they have less information about a job prior to the interview than any other industry. In short, these behaviors suggest that retail candidates tend to prioritize speed to interview when obtaining part-time employment. 6

Social media usage by retail candidates generally reflects the patterns of all candidates: they are engaged and often. The top six social media platforms are used by more than one-third of retail candidates. Facebook is used by 86 percent; Instagram by 52 percent.

Social Media Websites Visited by Retail Candidates In the Past Two Weeks

86% 86%

Facebook

47%

Instagram

52% 34% 32%

Pinterest

39% 41%

Twitter

Snapchat

35%

Google+

35% 34%

U.S. Average Retail Candidates

40%

33%

LinkedIn

27% 13% 16%

Tumblr

5% 6%

Flickr 0

10%

20%

30%

40%

50%

60%

70%

80%

90%

About Our Company

Many retailers focus their social presence on product, brand and consumer experience, and they may not be tapping into the potential of current job seekers. Candidates may get distracted if they check out an employer’s social media channels that do not promote job openings. Employers may lose an interested candidate altogether. Melissa Hassett – Vice President, Client Delivery ManpowerGroup Solutions 7 7

Apply by app, but interview in person Retail candidates are very interested in applying to jobs via mobile app; over half (53 percent) are willing to do this. Of the industries studied, only information technology candidates exceeded them in interest. The mobile app for Snagajob.com taps into their desire to apply via apps. It allows users to view available jobs, customize searches and apply for jobs in one click and without filling out multiple applications. Plus, it pushes daily job matches to users. Retail candidates may not be patient in job searches, as evidenced by high drop rates for employers with prolonged application processes. To streamline the application process, employers should look to invest with job boards that use apps. Yet, technology takes a backseat when it comes to interview preferences. Almost three-quarters of retail candidates prefer an in-person interview with a hiring manager. Retail candidates are peoplepeople who feel most comfortable expressing themselves at in-person interviews. They are significantly less likely than average to prefer phone, Skype or other video formats that utilize technology for interviews. Given the youth of many candidates and their comfort level with technology, these preferences may also be skewed somewhat by the presence of older, Baby Boomer candidates in the retail candidate pool. It is a fact of life that millennials prefer apps for almost everything. Savvy retailers will benefit from making the application process not just smartphone ready — but a streamlined process where one-click is king for submitting applications. Tradition still trumps technology, however, when it comes to evaluating the workers who will interface with customers.

Interview Preferences of Retail Candidates 65%

In-person with Hiring Manager

74% 10% 11%

In-person with Group Interview

Video/Vine

Video/Skype Invite-only Job Fair

U.S. Average

11%

Phone Screening

7% Retail Candidates

3% 4% 6% 3% 4% 0% 0

10%

20%

30%

40%

50%

60%

70%

80%

The allure of flexible, part-time employment is key to understanding retail candidate preferences. The employer value proposition for these candidates should focus on low effort-for-employment ratio that characterizes this group. Convenience is of the utmost importance. Application and onboarding process time also are an important part of the value equation. Competition for talent is tighter than ever, and the rise of the gig economy threatens to steal those interested in part-time work. Retailers should consider changing their scheduling practices to align with the appeal of the gig economy if they expect to compete effectively for workers. 8

8 STRATEGIES FOR ENGAGING RETAIL CANDIDATES The Global Candidate Preferences Survey results and expert insights indicate that a unique approach to recruitment is warranted when recruiting in retail. Here are eight recommendations that can help:

1. Limber up Retail candidates value flexible work arrangements, not just part-time jobs. However, it can be difficult to balance employee and business needs. An evolving leadership mindset must prioritize workplace flexibility supported by the technology tools that enable managers and employees to have a say in scheduling issues.

The restaurant industry has led the way. In many restaurants, trading shifts is now automated through apps that empower workers and ensure managers have coverage. Larger companies are developing proprietary technologies to manage hourly workers. Yet, even smaller initiatives can make a difference, such as developing shifts timed to coincide with school drop-off and pick-up times, weekend shifts for students or compressed shifts.

2. Centralize

Christopher Doherty – Vice President, Business Development ManpowerGroup Solutions

Many retailers place the ownership for hiring at the store level. A decentralized approach to recruiting and hiring not only makes it difficult for employers to build a consistent employer brand, but it also creates inefficiencies. Additionally, best practices and lessons learned may not be shared across locations. Centralized back-end recruitment means an investment at the corporate level. National campaigns customized for local market conditions can quickly generate economies of scale that yield a higher return on investment.

3. Diversify Successful retailers know how to segment the market, create product offerings and experiences that appeal to them, then market the products through outreach. Why not do the same when recruiting employees? Recruitment programs specifically targeted to veterans or active military spouses can open up new pools of qualified potential workers. Outreach to community college, trade school and university students with a well-crafted position bundle, not just a job description, will begin to build a pipeline of qualified workers. And while outreach to older workers through national organizations such as AARP may be slightly more costly, the initial investment may pay dividends in lower turnover.

4. Collaborate Companies growing their part-time workforce to meet talent needs can benefit from new talent communities, such as innovative collaborative hiring systems. Collaborative hiring can be especially useful to companies from the retail sector or those facing seasonal hiring challenges. Although the term is often associated with the winter holiday months, seasonal hiring is truly any period of time where there are predictable ebbs and flows in workforce needs. “Collaborating With Competitors: Sharing Talent Pools to Meet Workforce Challenges,” a white paper from ManpowerGroup Solutions, details how sharing talent pools can mitigate risk, reduce costs, increase agility and cope with production cycles. Technologies, such as WorkMyWay.com, assist companies with similar profiles by offering a single career portal. Candidates join WorkMyWay.com to leverage their skill sets across employers and decide where and when they want to work. Employers can map out all of the qualified talent in a market in order to more successfully identify available talent at the time of the need. New intermediaries, such as Husl, are pioneering on-demand collaborative marketplaces for hourly restaurant workers allowing employees flexibility and employers the ability to adjust their staffing in real time — with Husl covering worker’s compensation costs and billing employers hourly. 7

9


Amy Doyle, “Collaborating With Competitors: Sharing Talent Pools to Meet Workforce Challenges,” ManpowerGroup Solutions, 2015, 7.

5. Shift With more and more retail jobs shifting to warehouses and customer service centers, employers must think creatively about how to structure schedules. Positions that may at first glance appear suited for full-time workers may actually benefit from job sharing part-time schedules that provide the kind of schedule flexibility that more and more workers have come to expect. Retailers are now going head to head with the gig economy in all aspects of their business.

It is important to consider the motivation of seasonal or temporary workers. Most of these workers are looking for flexibility in their work and schedule. Seeking them out for full-time work often proves challenging, while flexible, part-time schedules better fits their needs and makes it easier to attract candidates.

6. Push

Wayne Crowley – Managing Director,Client Delivery ManpowerGroup Solutions

As research indicates, retail candidates are not using employer websites to learn about open positions or the employer value proposition as frequently as other candidates. Yet, the data shows that 67 percent of retail candidates want to be contacted two to four times per month by employers that they would be interested in working for. Social media can be an effective and efficient way to do this. This means that building a talent pool among qualified talent in the market is key. Pushing relevant information will help employers and candidates develop a bond that differentiates them from other potential employers. And that means not just pushing job openings but also relevant content that supports the brand. For instance, a retailer of outdoor gear might push content about hidden campsites, national parks or climbers of Mount Everest.

7. Streamline Because the one-click buying mentality is linked to instant gratification, employers need to examine the entire hiring process to determine how they can streamline it. Long times to hire and onboard can result in a high attrition rate between those who apply for retail jobs and those who ultimately clock in. That results in a waste of company time and resources. Employer best practices in this area include relaxing company-wide drug testing policies for positions that do not strictly require them, a designated window for interviews or a commitment to a one-day onboarding process.

8. Upgrade Employers should be forewarned, however, that a tech-savvy application process may set high expectations for the technology used in the retail setting. Today’s young retail candidates can be easily frustrated by work place tools and technologies they perceive as antiquated. Sometimes these jobs are not attractive to tech-savvy candidates or can result in higher turnover.

Conclusion Candidates gravitate toward particular industries for many reasons. Retail jobs offer part-time, hourly work for people who need to balance other aspects of their lives. Because retailers are often reliant on students and other younger workers, these millennials expect the hiring process to mimic the digital world. In order to compete effectively for top talent, retailers must transfer the consumer marketing skills they have honed over the years to build virtual foot traffic for talent. The seasonal hiring cycle is becoming more important than ever for retailers who seek to make up lost sales and revenue and the trend toward omnichannel retailing makes people more, not less, important. The unique preferences of retail candidates present an opportunity for employers to create competitive advantage in today’s global search for the recruitment and retention of top talent.

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More About the Respondents Overall, the survey respondents were between 18 and 65 years old and currently in the workforce (not retired or homemakers). In total, there were 1,384 U.S. respondents from the South (39 percent), Midwest/Great Lakes (22 percent), Northeast (21 percent) and West (18 percent). They represented a cross-section of age, income, employment status (i.e., full-time, part-time, contract), career level and industry. With respect to career level, experienced nonmanagers accounted for the largest group at 28 percent, followed by managers (22 percent), entry-level employees (16 percent), students (15 percent), executives (4 percent) and senior-level executives (6 percent).

About ManpowerGroup Solutions ManpowerGroup Solutions provides clients with outsourcing services related to human resources functions, primarily in the areas of large-scale recruiting and workforce intensive initiatives that are outcome-based, thereby sharing in the risk and reward with our clients. Our solutions offerings include TAPFIN - Managed Service Provider, Strategic Workforce Consulting, Borderless Talent Solutions, Talent Based Outsourcing and Recruitment Process Outsourcing, where we are one of the largest providers of permanent recruitment and contingent management in the world. ManpowerGroup Solutions is part of the ManpowerGroup family of companies, which also includes Manpower, Experis and Right Management.

About the Retail Industry Leaders Association The Retail Industry Leaders Association (RILA) is the trade association for the world’s largest and most innovative retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs, and more than 100,000 stores, manufacturing facilities, and distribution centers domestically and abroad.

About the Human Resources Leaders Council Chief human resources executives from retail member companies meet to network and share information on leading practices, operational challenges, and industry trends. These leaders work collaboratively to identify opportunities in HR that could have a strategic impact on their organizations and provide direction for RILA’s efforts in the human resources discipline. To learn more, visit www.rila.org.

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