With the holiday season on the horizon, frontline organizations are gearing up to meet the surge in customer demand. As they prepare to welcome a wave of shoppers and travelers, the focus is on building a skilled workforce that can deliver the exceptional experiences customers expect. 

But the question remains: Are they equipped?

We spoke with 450 U.S. managers in retail, hospitality and foodservice sectors and uncovered a pressing need for skilled seasonal workers, barriers to attracting skilled talent and strategies they’re deploying to tackle seasonal understaffing.

Why seasonal workers are key to handling the holiday rush

Seasonal workers are more than just an extra pair of hands during the holiday rush. They are essential to maintaining the flow of business and elevating customer experience. In fact, 57% of frontline managers across retail and hospitality are hiring at least the same amount of seasonal workers as last year or bringing in more. 

Seasonal employees provide critical support to fill in staffing gaps, especially as businesses prepare for a busy shopping and dining season.

Staffing challenges: Finding seasonal workers is tougher than ever

Staffing challenges have become a significant concern for frontline managers, impacting various aspects of business operations. This year, 75% of managers noted that staffing issues affect their ability to deliver a consistent customer experience, while 70% emphasized the need to reduce burnout among existing staff. The stakes are high: an understaffed team can dilute the customer experience, increase stress for employees on the shift and even become a potential safety issue.

Reflecting on last year’s data, the narrative is consistent. In 2023, 52% of frontline managers struggled to find seasonal workers, and this year, that challenge persists. While 61% say the quality of applicants has worsened, the necessity of hiring remains. This year, 11% are hiring more workers due to skill gaps in their current teams—an increase from previous years. 

This highlights the growing complexity of staffing challenges, and it’s clear that just filling positions isn’t enough; businesses need qualified, capable workers who can think on their feet and deliver consistent experiences during an exceptionally busy time. 

Seasonal hiring pressure is driving burnout among managers

The responsibility for hiring seasonal staff often falls squarely on the shoulders of frontline managers. They face a heavy load: 83% of managers must anticipate staffing needs, and 70% handle the recruiting process themselves. As they juggle these tasks, it’s no wonder that 65% report feeling more burnout leading up to peak seasons.

This year, nearly 38% of managers have contemplated quitting their jobs in recent months due to the stress of staffing. In fact, frontline managers say “understaffing” is the number one issue that keeps them up at night. Following closely are inventory issues, which rank second and volatile customers, coming in third.

For retail managers, the top three concerns are:

1. Understaffing
2. Theft
3. Inventory issues

For hospitality and food service managers, the concerns mirror those in retail:

1. Understaffing
2. Volatile customers
3. Inventory issues

It’s clear that managers are dealing with stress and unpredictability, further complicating their efforts to build a competent seasonal workforce.

Recruitment strategies: What’s working in 2024

Frontline managers are stepping up their recruitment game to attract the right talent. With competition for skilled seasonal workers intensifying, organizations are adopting various strategies to ensure they build a capable workforce that can meet customer expectations. Here are some key strategies making waves this year:

Emphasizing a safe work environment

In 2024, 77% of managers are prioritizing a safe work environment, recognizing that safety is paramount for attracting and retaining seasonal workers. This focus is as much to ensure the well-being of employees as it is to foster a positive workplace culture. Seasonal workers are more likely to return if they feel safe and supported, which is especially crucial during the busy holiday season when stress levels can escalate.

🦺 Read our Q&A on Building psychological safety with your frontline workforce

Creating flexible schedules

Up to 70% of managers are offering flexible schedules to appeal to potential hires. During the holiday season, many workers are looking for temporary gigs to supplement their income, and flexible hours can make a role more attractive. This approach allows seasonal employees to balance their work commitments with personal obligations, leading to higher job satisfaction and potentially encouraging them to return for future seasons.

Raising salaries

Interestingly, 49% of managers are raising salaries for the same positions compared to last year, reflecting the competitive landscape for attracting talent. Increased compensation is an effective way to stand out in a crowded job market. 

Our recent research uncovered similar conversations around salaries, revealing that while both frontline employees and managers are looking for more pay, compensation is connected to key areas of fulfillment like training and stability.  

Seasonal workers too view pay as a significant factor in their employment decisions, and higher compensation can lead to higher-quality candidates. This shift in focus toward salary helps attract talent and shows prospective employees that the organization values their contributions.

Providing training and upskilling opportunities

Frontline managers are focusing on upskilling and reskilling initiatives, with 43% prioritizing training for seasonal hires this year.

Effective training is critical to set seasonal workers up for success because they need to be ready in a shorter time frame. When seasonal workers feel prepared and competent, they are more likely to deliver exceptional service, leading to satisfied customers and a positive work environment.

Focusing on customer service training

Twenty-nine percent of managers are providing training on customer de-escalation, highlighting a proactive approach to preparing seasonal employees for challenging customer interactions they may face during the holiday season. This training empowers seasonal workers to handle conflicts effectively, ensuring that customer experiences remain positive even during peak stress times.

Addressing barriers to training

Despite these efforts, barriers to training persist. Managers cite disengaged employees (26%) and lack of time (19%) as significant challenges. Addressing these barriers is vital for building a more engaged and empowered workforce. As seen in findings from last year, the ongoing need for better support and resources remains critical.

By adopting these recruitment strategies and investing in training, organizations can create a work environment that not only attracts skilled seasonal workers but also encourages them to return. A positive experience for seasonal employees can translate into a stronger workforce and higher customer satisfaction, ultimately benefiting both organizations and employees.

The path forward rests on two pillars: Safety and support

These insights from frontline managers highlight the ongoing challenges and opportunities in staffing. To attract quality talent, businesses must adopt proactive recruitment strategies and create a safe and supportive work environment. 

The need for robust training programs is equally important, particularly in customer service and conflict management, to ensure that seasonal staff are well-equipped to handle the demands of the busy season.

Seasonal hiring insights: Industry-specific numbers at a glance

1. Staffing Challenges

• Delivering a Consistent Experience:
  • Retail: 75%
  • Hospitality / Food Service: 76%
• Reducing Burnout:
  • Retail: 64%
  • Hospitality / Food Service: 76%
• Delivering a Memorable Customer Experience:
  • Retail: 63%
  • Hospitality / Food Service: 65%
• Controlling Customer Issues (e.g., Theft, Safety, Violence):
  • Retail: 56%
  • Hospitality / Food Service: 46%

2. Hiring Needs

• Hiring Same or More Workers Compared to Last Year:
  • Retail: 55%
  • Hospitality / Food Service: 59%
• Hiring More New Workers Due to Lack of Staff Skill Set:
  • Retail: 12%
  • Hospitality / Food Service: 10%

3. Recruitment Tactics

• Promoting a Safe and Secure Work Environment:
  • Retail: 75%
  • Hospitality / Food Service: 80%
• Offering Flexible Work Schedules:
  • Retail: 68%
  • Hospitality / Food Service: 73%
• Training/Upskilling Initiatives:
  • Retail: 51%
  • Hospitality / Food Service: 55%
• Offering Higher Salaries Compared to Last Year:
  • Retail: 46%
  • Hospitality / Food Service: 51%

4. Applicant Quality Concerns

• Decreased Applicant Quality (Skill Set, Professionalism, Job-Related Experience):
  • Retail: 59%
  • Hospitality / Food Service: 64%

5. Frontline Manager Responsibilities

• Anticipating Staffing Needs:
  • Retail: 82%
  • Hospitality / Food Service: 84%
• Interviewing Applicants:
  • Retail: 74%
  • Hospitality / Food Service: 81%
• Onboarding New Hires:
  • Retail: 73%
  • Hospitality / Food Service: 81%
• Recruiting Applicants:
  • Retail: 68%
  • Hospitality / Food Service: 72%

6. Burnout

• Managers Facing Burnout Leading Up to Peak Work Seasons:
  • Retail: 66%
  • Hospitality / Food Service: 64%
• Managers Who Have Considered Quitting in the Last Two Months:
  • Retail: 35%
  • Hospitality / Food Service: 40%
• Managers Planning to Quit by the End of 2024:
  • Retail: 8%
  • Hospitality / Food Service: 10%

7. Upskilling and Training Focus

• Upskilling/Reskilling Seasonal Workers:
  • Retail: 42%
  • Hospitality / Food Service: 43%
• Training Workers on Conflict/Customer De-escalation:
  • Retail: 28%
  • Hospitality / Food Service: 31%

8. Barriers to Training

• Disengaged Employees:
  • Retail: 20%
  • Hospitality / Food Service: 32%
• Lack of Time for Training:
  • Retail: 23%
  • Hospitality / Food Service: 14%
• Outdated Training Methods:
  • Retail: 8%
  • Hospitality / Food Service: 12%

9. Frontline Manager Needs

• Engaged/Empowered Workforce:
  • Retail: 86%
  • Hospitality / Food Service: 81%
• Stronger Employee-to-Manager Community for Idea Sharing:
  • Retail: 72%
  • Hospitality / Food Service: 67%
• Wellbeing/Mental Health Support for Employees:
  • Retail: 67%
  • Hospitality / Food Service: 70%
• Direct Communication Between HQ and Employees:
  • Retail: 60%
  • Hospitality / Food Service: 59%