The labor shortage has long been a chronic issue in retail. Is this becoming our new normal? Both large and small retail systems are facing the same challenges. Companies are adopting various approaches to attract and retain employees, from importing labor and raising wages to strengthening their EVP (Employee Value Proposition). Despite these efforts, most employers still face a continuous shortage of workers. At this year’s FMCG Summit, Goran Kovačević, co-owner and CEO of Gomeks, presented data showing that foreign workers in retail perform up to 30% worse than local labor, raising the question of whether increasing salaries by the same percentage would be enough to solve the problem?
The answer to this question is not simple. In fact, it might even belong to the category of rhetorical questions.
The “Talent Hunt” has become one of the key goals for HR departments. The demand for skilled workers in the labor market is extremely high, while the supply of talent continues to decrease. This raises the question of whether traditional "hire and pay" strategies are still sufficient.
We are witnessing that the traditional "hire and pay" model is no longer sustainable!
Companies facing the "bottleneck function" effect, where the shortage of key job profiles can slow down or paralyze business operations, must change their hiring strategy, as traditional methods are no longer effective. When positions critical to the organization’s functioning are difficult to fill due to a lack of skilled workers, the entire organization can suffer from reduced productivity, project delays, and overburdened existing employees. The consequences of such situations can seriously impact the growth and development of companies. In the past, most companies based their competitive advantage on building relationships with customers. The question now arises: will the future focus of companies shift toward building relationships with employees?
Is "Difficult Mass Hiring" the New Employment Paradigm in Retail?
Difficult Mass Hiring is an approach used when companies need to hire a large number of employees in a labor market with reduced supply. These organizations require the acquisition of specific, and often scarce, skill sets. This concept demands careful planning of both short-term and long-term strategies to ensure process efficiency and employee retention. Difficult Mass Hiring is far more complex than traditional recruitment. The goal of this approach is not just to fill a large number of open positions, but to strategically plan for the various challenges posed by the labor market. This approach doesn’t just involve closing open positions quickly; it includes creating a sustainable talent ecosystem that allows the company to quickly adapt to market changes.
Organizations in need of large numbers of workers must combine both long-term and short-term recruitment strategies. In addition to short-term strategies like "on-the-spot" offers, referral programs, or RPO (Recruitment Process Outsourcing), companies must create long-term strategies for talent acquisition. This approach requires the development of long-term recruitment plans. At the heart of this concept lies strengthening the EVP (Employee Value Proposition), which not only attracts new talent but also helps retain existing employees by continuously investing in their development.
Talent Community: The Cornerstone of Modern Recruitment Strategy
Building a “talent community” is a key strategy in overcoming the challenges associated with mass recruitment. These communities allow organizations to create a pool of potential candidates with whom they maintain active, two-way communication. The focus of such programs is to build relationships with future employees through educational programs, mentoring, and loyalty initiatives. A talent community is an ecosystem that facilitates the continuous exchange of knowledge, the nurturing of relationships, and the development of skills and competencies that will be crucial for future organizational success.
Why Invest in a Talent Community?
By combining short-term and long-term strategies, organizations can achieve better results in mass recruitment. Short-term strategies ensure the quick filling of current vacancies, while long-term strategies ensure the acquisition and retention of key talent.
Considering all of the above, one might ask: Will companies begin to apply the strategies they once used to attract customers and build relationships with consumers, but now focus on their employees? Perhaps building strong connections with the people who form the core of the organization will be the key to driving growth and development in the future. I believe we will soon have an answer to this question and witness how things change before our eyes.