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Why raising minimum wage is no longer enough to draw in retail workers
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As seen in Board Retailers Association
Workers are not responding to these cues as they traditionally have. Why? Most retailers are using an outdated hiring playbook, write Alvarez and Marsal's David Ritter and Conor Gaffney.
It’s no secret that U.S. retailers have struggled immensely to fill employment gaps and maintain staffing levels as store traffic has returned in recent months. According to recent U.S. Bureau of Labor statistics, after significant growth in June — up by 67,000 — retail hiring flattened, then decreased in July (down 6,000) and August (down 29,000).
At a macro level, the number of individuals employed by retail companies still sits about 300,000 workers below pre-pandemic levels, despite retailers’ increasingly desperate attempts to hire additional staff. With the critical holiday season approaching, this strategic challenge — which already looks for all the world like a great reset — will be exacerbated by seasonal hiring efforts.