How to Secure Summer Staff and Save on Labor Costs

The summer months bring sunshine, vacations, and a surge in retail business. But with rising minimum wages and inflation squeezing profit margins, attracting and retaining seasonal staff can feel like an uphill battle. This year, the competition is even fiercer, with the leisure and hospitality industry experiencing strong job growth—42,000 jobs added in May 2024 alone, according to the Bureau of Labor Statistics. So, how can retail businesses stand out in this competitive market and secure the summer staff they need?

The Challenge: A Competitive Job Market

Retailers face a double whammy: rising labor costs due to minimum wage hikes and a shrinking pool of seasonal workers. As reported by Marketplace.org, "the travel and tourism industry saw a sharp rebound after COVID," leading to strong job growth there. This means potential summer hires might be drawn to restaurants and hotels offering competitive wages to compensate for the physically demanding nature of those jobs.

Strategies for Success

1. Broaden your hiring scope

Take a cue from the leisure and hospitality industry—consider hiring younger teens (16-19) who are eager for summer jobs, and older adults (over 60) looking for supplemental income.

2. Offer competitive wages and benefits

Money talks. Highlight competitive pay in your job postings and advertising to stand out from the crowd.

3. Foster a positive work environment

Don't underestimate the power of company culture! Promote perks and a positive work environment to attract and retain staff. This could include flexible scheduling options, employee discounts, or even fun team-building activities.

4. Invest in training and development

Show your seasonal staff that they're valued by offering training opportunities. This can help them develop new skills and feel more invested in their role. Training is important if you want to get workers up to speed on necessary skills early in the summer.

5. Leverage technology

In today's digital age, a strong online presence is crucial. Use online job boards and social media platforms to reach a wider range of potential candidates.

Seasonal Staff Woes: Employee Turnover

Securing seasonal staff is crucial, but keeping them on board is equally important because high employee turnover can significantly hurt your bottom line. Studies show replacing an employee can cost up to twice their annual pay, and businesses with lower turnover see higher profits. This is especially concerning for seasonal staff, as the costs of onboarding and training new hires can quickly eat into summer profits.

The good news is that many factors contribute to employee turnover, and many of them can be addressed with the right strategies. As we've discussed, creating a positive work environment with empathetic leadership and opportunities for development can significantly boost employee engagement and reduce turnover.

EG America's Summer Hiring Spree

So, what can retailers do to stand out and attract top seasonal talent? Here’s an example. To gear up for the busy summer 2024 season, EG America announced plans mid-June to hire 7,500 new employees across their 10 store chains. This aggressive hiring strategy highlights the importance of securing seasonal staff early on. But what makes EG America's approach so appealing? They're offering competitive pay, benefits, and a unique program that allows employees to access their earned wages before payday. This focus on competitive compensation and employee well-being can be a powerful tool for attracting top talent in a competitive market.

Did You Know? EG America is a SafePoint customer, and they were able to consolidate over 100 banking relationships as a result. Read the full case study here.

Adapting to a Changing Workforce

The way people work is changing. Many potential summer hires prioritize flexibility over a traditional 9-to-5 schedule. Retailers should view their business’s brand from the lens of a potential employee. Here are some tips:

• Embrace the "gig economy" mentality—offer flexible scheduling options, like split shifts or weekend-only availability, to attract a wider range of candidates who might be juggling school or other commitments. 
• Showcase your company culture and values through social media and your careers page. What makes your company unique? Why should someone choose to work for you? 
• Go beyond just competitive pay. Offer competitive benefits, promote work-life balance, and show your employees you care about their overall well-being.

Make Summer Hiring a Breeze with SafePoint

The strategies above will help you attract top talent, but automation within your operation will allow you to save money, which is crucial during a time of year when your labor costs are at the highest. Automating mundane tasks like cash handling could save you up to 8 hours a day in labor.

SafePoint tackles time-consuming cash handling tasks, freeing up valuable time for both summer staff and managers. Smart safes and cash recyclers eliminate bank runs, allowing employees to focus on customer service and other key tasks. Built-in training on these user-friendly devices minimizes the learning curve, ensuring your summer staff are productive quickly—a critical advantage during peak seasons.

SafePoint's benefits extend beyond onboarding. With less time spent on bank runs, staff can dedicate those hours to training, upselling, and merchandising. Additionally, SafePoint enhances security by electronically securing your cash, minimizing theft risks—a feature that is especially important for seasonal staff unfamiliar with cash handling procedures.

Ready to learn more about how SafePoint can assist your retail business? Contact a Loomis expert today.