Deciphering the Enigma: How to Overcome the 3 Major Challenges of Operational Recruiting in the Retail Industry
I have had the privilege of engaging in numerous conversations with human resources and talent acquisition leaders in various branches of the retail sector. Regardless of the products or services they offer, many face similar challenges when trying to hire and retain exceptional talent.
Every organization is unique, but the difficulties associated with the mass hiring in the retail sector they are evident in every talent team. After hundreds of hours of conversations with operating employers, I have identified the most recurring challenges they face:
Challenge 1: Reduce the rate of ghosting by candidates
One of the realities in the recruitment world (and sometimes in life) is the lack of follow-up on the part of candidates. Often, people disappear from the process, either by missing an interview, leaving the last stage of background checks incomplete, or even not showing up on the first day of work. This phenomenon, understandably, represents a challenge that can be exhausting for any member of the hiring company.
It's logical for strategic leaders to ask: why is this still happening? And, more importantly, how can I resolve it?
Let's start by answering the first question.
Why Candidates Host Employers
In most cases, candidates apply the law of ice because:
- The process took too long. The time between application and hiring is crucial for applicants. The phenomenon of the “Amazon Prime” effect applies here in a similar way to when we order that fifth thermos of coffee: the longer we have to wait, the more likely we are to look elsewhere to buy it.
* Ghosting: From the English “ghost” (ghost), this term colloquially describes the practice of interrupting a relationship or interaction using technology as a means to cut off all types of contact suddenly, without warning and without giving explanations (like a ghost).
- They received a more attractive offer from another company. La Wage compensation is often the main reason which is why companies believe they are losing talent. The data supports this argument, as many employees choose to change jobs because of a minimal difference in salary.
- They received another offer that is better suited to their current situation. Location is a crucial factor to consider when buying a home, and it could be even more so when it comes to accepting a job. Applicants have told us that proximity is a very important point due to transportation costs and time spent getting around. Work hours are another important aspect that influences applicants' decision to accept employment, as they can choose a position that best matches their current availability.
How to deal with ghosting by candidates
Diagnosing the reasons why candidates are hosting you can be difficult. You can't just ask them because, well... they're harassing you. Therefore, there is a need to balance a data-driven approach with some intuition. Identifying where candidates are leaving the recruitment process is the crucial first step.
Once you have a diagnosis (or hypothesis), it's time to act quickly. Here are some ways to address these challenges:
- Research your main local competitors through their ads to see what types of salaries and benefits they offer. Use these examples to engage in conversations with your internal teams about how to create more attractive offers for candidates.
- Be clear about shift requirements from the start. It's better to lose candidates right from the start because they can't work nights than to lose them after you've invested time and resources in them.
- Take advantage of technology to reduce your hiring time and improve the geographical allocation of your new employees based on their address. Tools like ours can link candidates to your nearest branch based on their zip code. Artificial intelligence and automation they can also accelerate tedious tasks and eliminate bottlenecks between candidates and recruiters, as well as between recruiters and hiring managers.
Reduce turnover in the first 90 days
Are you worried about the high staff turnover in your company? You are not alone. I've heard alarming numbers ranging from 50% to 700% turnover.
Although I usually talk primarily with leaders in the recruitment area, they are very aware of this index and consider it as important as other human resources teams. Talent retention is strongly influenced by the process that talent goes through from the first contact to their first day with the company. The reality is that, even after they accept the offer, the same reasons that lead candidates to ghost the company during recruitment can affect employees during their first 90 days of employment, causing them to leave.
While turnover before 90 days is frustrating for recruiting managers (who constantly struggle to fill an ever-emptying talent pool) and hiring managers (who must strive to compensate for a lack of staff), it also directly affects a company's profitability. Early turnover has an average cost of $1,500 per lost operating employee.
Therefore, it is essential for organizations to find scalable ways to combat early turnover.
How to deal with turnover in the first 90 days
Let's work together to make sure that those concerns don't keep you awake.
First, it's critical that you and your team prioritize transparency, proactivity, and consistency in the candidate experience. Some may choose to leave the process when they learn about the challenges of the job, but this will save you a lot of time and money in the long run.
Here are some strategies for dealing with this costly problem:
Transparency from the start
It's crucial to set clear expectations throughout the hiring process. In addition to the availability of schedules, aspects such as the time the employee will spend standing, the handling of heavy objects, the interactions with complicated customers, the lack of natural light and the possibility of facing theft or loss are just some of the challenging situations that employees in different roles within the retail sector can face.
To ensure that candidates have realistic expectations, it is essential to discuss during interviews these aspects of the job that are not so glamorous, to invite them to visit the facilities before their first day, and to invite them to ask questions during their oboarding process.
Proactivity before starting to work
Creating a comfortable environment from day one can make a difference. It's common for organizations to have new employees filling out forms and watching hours of training videos in the first few days. However, when using automation in the process of Onboarding, new employees can arrive on their first day ready to start working right away.
Consistency after onboarding
Finally, it is essential to maintain constant communication through surveys and contact with managers. This doesn't have to be a weekly 30-minute one-on-one meeting with a manager. Communication must be simple and scalable, both for the employee and for the manager. This could involve sending automated messages to the person at key times. These surveys can help teams identify the challenges an employee is facing before they become bigger problems.
Challenge 3: Frictions between hiring managers and recruiters
How many times have you heard your recruiters express frustration when they try to collaborate with hiring managers? And, on the other side of the coin, how many times have hiring managers expressed frustration with the recruitment process?
This is a topic that I hear constantly from both perspectives. What I have found is that, on many occasions, it is due to two main problems:
Bottlenecks due to inefficient processes
The more manual steps required in a hiring process, the more bottlenecks can arise. I still see many companies that rely on inefficient processes to coordinate interviews, gather feedback, set start dates, and other steps as a candidate moves through the process.
Hiring managers try to be present in the company as much as possible, but are often forced to leave because of everything that hiring involves. Meanwhile, recruiters feel ignored by their busy hiring managers and, as a result, are forced to send follow-up messages over and over again.
Technology not suitable for recruitment and mass hiring needs
The technology adopted by talent managers can be difficult for hiring managers to use, forcing them to invest more time than they have in learning how to use the tool. For example, candidate tracking systems (ATS) are confusing and often require hiring managers to learn how to use a new application or spend long periods at a desk, keeping them away from income-generating activities.
Ultimately, I have seen on numerous occasions that inefficient processes and cumbersome technological “solutions” can create friction within the team. Recruiters and hiring managers share the same goal, but they become frustrated when they fail to meet their goals because of situations that are beyond their control. If these issues are not addressed, more conflicts are likely to arise, processes will slow down, and fewer employees will be hired.
How to resolve friction between hiring managers and recruiters
To reduce these frictions, it is crucial to consider the manual intervention of recruiters throughout the process and the ease of use of the selected technology.
Process
No hiring team should get stuck coordinating interviews, gathering feedback, selecting start dates, and other typical tasks involving interaction between the hiring manager and the recruiter. When recruiters are faced with an overwhelming burden of manual tasks, it's understandable that conflicts arise with those responsible for hiring. When the process is fixed, the problem is solved. By adopting automated and intelligent processes to replace outdated, manual methods, recruiters and hiring managers can focus on other roles and responsibilities, which are vital in the hiring process.
Technology
It's critical to know the needs of hiring managers and to prepare them for success with intuitive tools. Using an automated operational recruitment platform, such as Emi, simplifies the process for hiring managers. Most purported solutions for operational recruitment don't consider the specific needs of people who make purchasing decisions, such as CEOs and floor managers. By integrating with calendar and text messaging applications for candidate management, hiring managers don't need to be behind a desk or learn how to use a new system/application to schedule, interview and move candidates forward efficiently in the hiring process.
Automation to the rescue
The truth is that I usually talk to leaders who have tried solutions that act as temporary patches, such as adding a chatbot or an appointment scheduling tool linked to a calendar. In the end, they always discover the truth: implementing a comprehensive automated recruitment platform is the best way for teams to face all of these challenges at once, rather than part by part.
The comprehensive contracting solution
Comprehensive recruitment platforms such as Emi help to address the challenges of operational recruiters in the retail sector in the following ways:
- Reduce ghosting on the part of candidates: Through consistent and authentic automated communication, Emi enhances the image of employers and guides candidates throughout the hiring process. This dramatically reduces ghosting during the process of Interviews And in the start dates.
- Build relationships with new employees: Emi is a fully text-based application (with an effectiveness rate of 73%) that guides candidates during onboarding and the first 90 days. This automated operational recruitment system tracks interaction using corporate materials and forms, and collects data for sentiment analysis, which will provide the team with the necessary information to prevent turnover.
- Reduce friction in hiring teams: Our intuitive SMS-based hiring management experience allows hiring managers to easily communicate availability, interview feedback, and start dates through Emi, instead of your recruiters. Automatic reminders ensure that everything is done on time, eliminating bottlenecks.
Final Thoughts
If I could summarize this article in one sentence, it would be this: “You are not alone in the challenges you face.”
Whether Emi fits your team or not, I love hearing talent acquisition professionals talk about the diverse and complex problems they face. Do not hesitate to contact me through LinkedIn O filling out this form to follow the conversation.