Retail hiring goes high tech as holiday season nears

*       by Amy Langfield 
*       Oct. 3, 2013  msnbc
*
<http://www.nbcnews.com/business/retail-hiring-goes-high-tech-holiday-season
-nears-8C11324611> original 

. 

Jobs <http://www.nbcnews.com/business/tag/jobs>  

Job seekers fill out applications the old fashioned way as they wait in line
to enter a job fair at a new Target retail store in August 2013 in San
Francisco, Calif. 

As retailers gear up to hire hundreds of thousands of seasonal workers for
the holidays, job seekers are likely to notice the application process has
gone more high tech. 

In-store kiosks may electronically blackball some candidates. They may also
send a text message to managers about other job hopefuls who might be worth
hiring on the spot to start training. 

"It literally can all happen within one hour," said Adam Miller, CEO and
co-founder of Cornerstone OnDemand, a talent consultancy with clients such
as Neiman Marcus, Walgreens and The Container Store. 

Good hires are especially important to the retail industry, where the
turnover rate is about 57 percent, with most of that coming within the first
90 days, said Craig Rowley, vice president and global leader of the retail
practice for the Hay Group. That can add up fast, since the cost of hiring a
new hourly worker is about $600 to $1,000 if you factor in the cost to
advertise the job and the time to conduct interviews and do basic training,
Rowley said.

"The objective is to get people who fit," said Rowley. For small retailers,
the ability to work flexible hours may be a primary need, while others may
craft behavior and capabilities questions to gauge honesty and other values.


One of the biggest staffing problems in retail, he said, is people who just
fail to show up for a shift. How do you guess that in advance? "You can ask
questions around it," Rowley said. "How important is it for you to be on
time?"  

It's still unclear if these tests are worth the money companies are spending
on them, but at least one study of personality tests used in hiring found
the employees learned to manipulate their results with ease.   

"I think the consensus from the research is that faking does happen, but it
doesn't really change the predictive role of the test. . They learn to be
who they need to be to fit that job," said John Hausknecht, an assistant
professor of human resource studies who focuses on the study of hiring and
retention at Cornell University's ILR School.  

"Job candidates who fail a personality test the first time often change
their responses dramatically on the second test - even though adult
personality is known to be generally stable and unlikely to change in the
short interval (in this study, one year) between tests," Hausknecht wrote in
his 2010 report
<http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1019&cont
ext=cahrs_researchlink> . 

The research does support testing for one skill, though: conscientiousness.
If you pay attention to details on the test, you're likely to do the same in
your job, Hausknecht said. 

Software for the hiring and retention of employees ranges from off-the-shelf
options to customized systems that even allow virtual tryouts of jobs using
video simulations, he said. 

The technology also has improved training for new employees, which is key to
slowing turnover, said Cornerstone OnDemand's Miller. Most people who leave
within the first 90 days quit because they don't like their job, and one big
reason they don't like their job is that they didn't have the proper
training to do their job. 

"What you find in exit interviews is, it's almost never about money," Miller
said. Reasons for quitting are usually people who said they weren't learning
anything, did not have flexibility in hours, didn't feel empowered to do
their job well, or didn't communicate well. 

While turnover has been historically high in retail, not all companies think
of it as a major problem, said Ellen Davis, a senior vice president of the
National Retail Federation. 

"Retailers realize that when you have thousands of people in entry level
jobs, it's going to be a natural occurrence," Davis said. For some, it's
enough to hire for a good personality and great customer service skills,
even if that person is only on the job for three months. 

"Retailers are very used to turnover in our business. That's the nature of
the business," she said. "You're not going to say: 'I'm not going to hire a
great high school student.' . Half of all working teenagers work in retail."


The slow improvement in the economy is also increasing retailer turnover.
While Rowley at the Hay Group said retail turnover stands at 57 percent,
that's up from 50 percent two years ago. Davis said private data her group
collects also indicate a rise in turnover at retail cashier positions during
the past three years. "However, it's still not back to pre-recession
levels," she said. 

The recession, unemployment and underemployment have given retailers a big
pool to choose from, said John Challenger, the CEO of Challenger, Gray &
Christmas, Inc. 

"Retailers have had the ability to really sort through and find the people
who will stay and do the job well," he said. "It's a big data problem.
They're using technology to target the right people."

C 2013 CNBC LLC. All Rights Reserved


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nears-8C11324611

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