The holiday pressure cooker
They say it’s the most wonderful time of the year, but for many grocers, by mid-December, the checkout lines aren’t the only thing stretched thin—the workers are, too.
“Our stores experience significantly higher traffic during the holiday season, which places increased demands on our existing team,” says Julia Semeraro, human resource manager at Vince’s Market, which has four Ontario stores and employs more than 300 people.
“We have noticed (in recent years) that customer patience has decreased, which can sometimes result in less courteous interactions. This tends to intensify during the holidays,” she says.
The primary challenges? Burnout and absenteeism. “As store traffic increases and customer needs intensify, our team experiences greater pressure, which can lead to potential burnout. Plus, absenteeism tends to rise as employees take time off to be with family and friends during the holidays,” says Semeraro.
Year-round challenge
According to Groom & Associates, a national recruitment agency based in Montreal, the retail and wholesale sector continues to struggle significantly, with a current average turnover rate of approximately 21%. The grocery sub-sector faces an even more acute challenge, with some estimates placing turnover as high as 30%, based on an aggregation of data from Canadian workforce analysts.
Ramesh Venkat (PhD), director of the David Sobey Retailing Centre at Saint Mary's University in Halifax, points out it’s a year-round problem, fuelled by fewer prospective workers who have rising expectations for their career.
“There is a structural issue in the labour market with the aging population and there are fewer younger people available to take up the frontline jobs,” says Venkat.
The holiday season can bring these complex issues to the fore. “There can be higher absenteeism due to (student-employee) exams and flu season. Shoppers are stressed, with financial stress and the stress of shopping and can, at times, be impolite with frontline staff, which can also cause employee stress.”
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Hiring seasonal workers might help but it has its costs. It can become a revolving door—and a vicious circle: The employer is not committed to these temporary workers and so cannot expect commitment in return. Plus, since grocers are rushing to fill vacancies with temporary workers, there is often inadequate screening. “This can increase shrink due to theft. And there is no time or money to train the employees, so the service level may not be up to the expected standards,” he says.
According to an Express Employment Professionals-Harris Poll, turnover costs Canadian businesses $29,234, on average, annually in expenses such as rehiring and lost productivity. “Since this process of seasonal hiring is repeated every year, the hiring costs add up,” says Venkat.
Vince’s Market avoids this compounding problem by not hiring temporary workers. But, “Recruiting new (long-term) team members during this period is particularly challenging, as many candidates are not looking to start new roles over the holidays. While finding applicants is manageable, identifying candidates who are genuinely committed to their role remains difficult,” says Semeraro.
Boosting engagement, retention
Semeraro says to maintain morale and retain employees, Vince’s Market encourages team members to take their scheduled breaks, honour their days off, and maintain a healthy balance. “We also make a point of offering positive reinforcement and acknowledging their hard work throughout the season.”
Venkat recommends cross-training to keep employees engaged and interested. “When there are no customers in line, a cashier could help with merchandising, for instance. And the employer benefits from the greater productivity of the employee.”
READ: New survey reveals nearly 40% of Canadian employees are feeling burnt out
He also recommends investing in employee training for new skills and creating a more attractive compensation package. “It has to be a mix of things—better compensation, career development and an overall better work culture.”
Omnichannel retail
Venkat notes that AI and the increasing role of omnichannel retail will require new skillsets. If grocers cannot find the talent, their innovation and transformation efforts will lag.
“As the role of the brick-and-mortar store changes—in some cases it is where online orders are fulfilled and in other cases the store is become an experiential destination——grocers will be hiring for new skills in logistics, AI, e-commerce/omnichannel, social media marketing etc.,” says Venkat.
For now, he says, there is a bit of good news.
“A few of the major national grocers are investing in employee development and increasing the compensation, which is a good start,” he says.
As for small independents, “They may not be able to pay as much as the larger retailers, but they can sometimes attract highly engaged employees. If the smaller grocer is known for sourcing from local farms and producers, they can attract employees who have a similar ‘support local’ mindset. This alignment of values is something smaller retailers can leverage.”
And sometimes, it is a wonderful time of year: “Our team values the meaningful interactions with our regular customers,” says Semeraro. “Being able to wish them a happy holiday season and guide them toward products that help enhance their celebrations is especially rewarding.”
