Check out the latest insights from

WageScape

The retail industry has seen many shifts in the last decade, making it one of the most rapidly changing markets for our labor force. 

A Look at the Current Retail Labor Market

When it comes to the retail labor market, evolving business conditions are shaping current hiring and pay practices. Data driven decisions, above all,  being the most impactful and useful tool when it comes to adjusting hiring and pay practices.

• E-Commerce and Sales: Consumers now prefer the convenience of shopping from the comfort of their homes, driving retailers to enhance their digital platforms and optimize the online shopping experience. 
• Data Driven Decisions: Personalization and data-driven decision-making are becoming fundamental in understanding and meeting consumer expectations.

Hiring Trends

The overall labor market has cooled significantly, and retail has followed suit along with other industries, but there is still a need for workers as the industry adapts to the need for ecommerce, sustainability, and data experts to join their teams.

• Better Benefits: To combat this shortage, retailers are trying to hire and keep employees by offering higher wages, better benefits, flexible schedules, and sign-on bonuses.
• AI in Retail: AI has made a significant impact in the way recruiters identify potential candidates. HR professionals now use AI tools that allow them to screen resumes and eliminate applicants that do not meet the required criteria.

Pay Trends

2024 is shaping up to be a better year for retail, with more jobs available, and more opportunities to find qualified candidates. 

• Pay Increases: Pay in retail roles have stayed consistent in the last 12 months, with an average of $33,280 median advertised pay for valued retail associates such as cashiers, sales associates, store managers, and merchandisers. Knowing pay trends is so important when it comes to recruiting and hiring the right individuals for open roles. 

Business Considerations

• Access to Labor:  Finding employees with the right skills, experience, and salary expectations make it even more difficult to hire. It is important to stay up to date on  emerging skills trends, talent availability, compensation, and analysis of a competitor’s talent practices. All which can be achieved with proper access to labor market data.

The role of labor is changing rapidly, and hiring practices have to be flexible to accommodate changing retail environments. Pay practices have to reflect local, volatile pay environments, which is why a real-time market intelligence tool like WageScape is essential.