Tactics for Tackling the Labor Crunch
- Keywords:
- talent
“Do. Or do not. There is no try.” —Yoda, "The Empire Strikes Back"
You can’t hide from the current labor shortage. Whether you’re a business owner or consumer, large company or small, we’re all facing the same issues. And if you feel employee retention is getting worse, you’re right—4.3 million people quit their jobs in August 2021,1 the highest number on record dating back to December 2000. This was an increase over the 4 million people who quit in July 2021.
While there are various reasons for this trend, the essential fuel and convenience industry must continue to move forward and capitalize on the industries recent success.
At the recent NACS and M-PACT trade show, and SIGMA Conference, c-store chains and logistic firms delivered several presentations on this topic. The subject came up in every industry trend conversation. It’s clear that the labor shortage is a national issue, and companies need to shift the way they operate in response to it.
The average turnover rate in 2020 was 91.8% for full-time hourly associates and 153.9% for part-time workers.2 Lack of employees are causing stores to limit hours, QSRs to shift to drive-thru only, and repairs and maintenance to be delayed. And while business has remained strong in 2021, how do you maintain this momentum and continue to deliver fuel or offer a top c-store experience?
Retain your strong performers
It’s an employee’s market. Retail wages are rapidly increasing, and employees will jump to another job if they’re unhappy. C-store operators can respond by developing an employee retention plan (which will vary depending on company size) and making sure you have a healthy culture and strong leadership. If employees don’t like their managers, they’re moving elsewhere. Having bottom-up conversations to allow employees to share their ideas and feel empowered can be a great help. They are the ones on the front lines and can bring unique ideas to the table.
Money will always be a driving factor in whether workers stay or go, but it’s not always the primary consideration. Funded 401Ks, health insurance, paid vacation and college tuition benefits are another way to differentiate your business. Laying out a clear path for advancement and promotion can also be an effective tactic. As part of that process, include incentives that encourage staff to keep shrink below a certain threshold and pay a bonus when hit.
Scheduling is more important than ever. Offering set and flexible schedules, at one or multiple locations, can help. Stability for some and flexibility for others is an additional perk. One NACS retailer even mentioned they were willing to help a top performing non-citizen with an employer-sponsored green card to begin their pathway to citizenship. Remember, the cost of hiring and training a new employee can be more expensive then retaining a qualified hire.
Current employees can be your best advocates when hiring. Consider a tiered refer-a-friend program toward a successful hire. Some companies offer a portion of the referral bonus after two weeks, and the remainder after the new hire has successfully worked for 90 days. Also, don’t be hesitant to offer employees additional compensation if they consistently refer new employees. At the end of the day, everyone wants to be happy and respected. Communicating to your employees that you understand this is the first step to aligning yourself with their thought processes.
Beat the competition when hiring
According to the latest monthly employment survey from the National Federation of Independent Business, 49% of all owners reported job openings they could not fill.3 Experts are still trying to determine if the labor shift is primarily a result of extended unemployment benefits, childcare issues, vaccine mandates or a fundamental shift in our society as a result of the pandemic. Regardless, finding talent is a challenge.
Listening to the various strategies at NACS, it’s clear you need to look at the process from the applicant’s perspective and create an employee-friendly experience. Offer clear messaging on job duties. Explain if it’s no-touch freight or home nightly when looking for drivers. If you’re hiring cashiers or a management position, outline the duties, advertise available hours and be clear on expectations. Don’t assume applicants know or understand a position’s duties.
Creating a frictionless applicant experience creates more hiring opportunities. Here are some tactics to consider:
-
Offer online, mobile and in-person applications.
-
Provide an impactful human interaction at the onset of the application.
-
Call back applicants immediately. Text if you get a voicemail.
-
Be human. Build rapport, show empathy and lead the conversation.
-
Don’t have a script. Engage and understand what type of job they are looking for.
Applicants usually apply to multiple businesses. Taking a week to hire is a practice of the past. Be prepared to interview, background screen, hire and onboard on day one so your new employee can start on day two. Just don’t forget about the possibility of being ghosted. The NACS Show mentioned 8.3% of full-time associates and 19.4% of part-time workers don’t show up for their first day.
Shift the way you think
All applications have value. Just because someone isn’t hired today doesn’t mean they won’t be a good fit next month or next year. An M-PACT session suggested investing in recruiting technologies to help track and manage application data. These tools organize background checks, pre-hire testing, and manage tasks and reminders. If an applicant calls back, you need to be ready to hire.
Timing is a big factor when trying to fill positions. Not getting a response does not mean the applicant isn’t interested; they could just be having a bad week. Use these programs to oversee outreach and stay top of mind. Periodically share an open list of positions available with current employees and past applicants. Involve your marketing team so you’re also advertising your business through the outreach.
And while not a common practice, at least one company recently mentioned it’s exploring rehires. Every situation is unique. Do you have past employees that are worth connecting with again? Have company policies changed that could make a past employee a better fit?
If you’re able to hit your goal and be fully staffed, continue to take names and applications. Turnover is inevitable and it’s probably just around the corner.
It's not all bad
There is a silver lining. After all, it’s better to not have enough workers then to be fully staffed without business. And demand continues to be strong. U.S. retail sales rose 0.7% in September and August gains were bumped to 0.9%.4
As pandemic-related issues recede, the labor pool should start to rebound as people exit the sidelines, although the recent OSHA vaccine mandate could cause some headwinds. But that’s just another reason to implement these strategies now to provide the advantage you need to continue growing.
1 U.S. Bureau of Labor Statistics 
2 NACS
3 NFIB
Read more
Jonathan Graham, Vice President, Fuel Services
“Do. Or do not. There is no try.” —Yoda, "The Empire Strikes Back"
You can’t hide from the current labor shortage. Whether you’re a business owner or consumer, large company or small, we’re all facing the same issues. And if you feel employee retention is getting worse, you’re right—4.3 million people quit their jobs in August 2021,1 the highest number on record dating back to December 2000. This was an increase over the 4 million people who quit in July 2021.
While there are various reasons for this trend, the essential fuel and convenience industry must continue to move forward and capitalize on the industries recent success.
At the recent NACS and M-PACT trade show, and SIGMA Conference, c-store chains and logistic firms delivered several presentations on this topic. The subject came up in every industry trend conversation. It’s clear that the labor shortage is a national issue, and companies need to shift the way they operate in response to it.
The average turnover rate in 2020 was 91.8% for full-time hourly associates and 153.9% for part-time workers.2 Lack of employees are causing stores to limit hours, QSRs to shift to drive-thru only, and repairs and maintenance to be delayed. And while business has remained strong in 2021, how do you maintain this momentum and continue to deliver fuel or offer a top c-store experience?
Retain your strong performers
It’s an employee’s market. Retail wages are rapidly increasing, and employees will jump to another job if they’re unhappy. C-store operators can respond by developing an employee retention plan (which will vary depending on company size) and making sure you have a healthy culture and strong leadership. If employees don’t like their managers, they’re moving elsewhere. Having bottom-up conversations to allow employees to share their ideas and feel empowered can be a great help. They are the ones on the front lines and can bring unique ideas to the table.
Money will always be a driving factor in whether workers stay or go, but it’s not always the primary consideration. Funded 401Ks, health insurance, paid vacation and college tuition benefits are another way to differentiate your business. Laying out a clear path for advancement and promotion can also be an effective tactic. As part of that process, include incentives that encourage staff to keep shrink below a certain threshold and pay a bonus when hit.
Scheduling is more important than ever. Offering set and flexible schedules, at one or multiple locations, can help. Stability for some and flexibility for others is an additional perk. One NACS retailer even mentioned they were willing to help a top performing non-citizen with an employer-sponsored green card to begin their pathway to citizenship. Remember, the cost of hiring and training a new employee can be more expensive then retaining a qualified hire.
Current employees can be your best advocates when hiring. Consider a tiered refer-a-friend program toward a successful hire. Some companies offer a portion of the referral bonus after two weeks, and the remainder after the new hire has successfully worked for 90 days. Also, don’t be hesitant to offer employees additional compensation if they consistently refer new employees. At the end of the day, everyone wants to be happy and respected. Communicating to your employees that you understand this is the first step to aligning yourself with their thought processes.
Beat the competition when hiring
According to the latest monthly employment survey from the National Federation of Independent Business, 49% of all owners reported job openings they could not fill.3 Experts are still trying to determine if the labor shift is primarily a result of extended unemployment benefits, childcare issues, vaccine mandates or a fundamental shift in our society as a result of the pandemic. Regardless, finding talent is a challenge.
Listening to the various strategies at NACS, it’s clear you need to look at the process from the applicant’s perspective and create an employee-friendly experience. Offer clear messaging on job duties. Explain if it’s no-touch freight or home nightly when looking for drivers. If you’re hiring cashiers or a management position, outline the duties, advertise available hours and be clear on expectations. Don’t assume applicants know or understand a position’s duties.
Creating a frictionless applicant experience creates more hiring opportunities. Here are some tactics to consider:
-
Offer online, mobile and in-person applications.
-
Provide an impactful human interaction at the onset of the application.
-
Call back applicants immediately. Text if you get a voicemail.
-
Be human. Build rapport, show empathy and lead the conversation.
-
Don’t have a script. Engage and understand what type of job they are looking for.
Applicants usually apply to multiple businesses. Taking a week to hire is a practice of the past. Be prepared to interview, background screen, hire and onboard on day one so your new employee can start on day two. Just don’t forget about the possibility of being ghosted. The NACS Show mentioned 8.3% of full-time associates and 19.4% of part-time workers don’t show up for their first day.
Shift the way you think
All applications have value. Just because someone isn’t hired today doesn’t mean they won’t be a good fit next month or next year. An M-PACT session suggested investing in recruiting technologies to help track and manage application data. These tools organize background checks, pre-hire testing, and manage tasks and reminders. If an applicant calls back, you need to be ready to hire.
Timing is a big factor when trying to fill positions. Not getting a response does not mean the applicant isn’t interested; they could just be having a bad week. Use these programs to oversee outreach and stay top of mind. Periodically share an open list of positions available with current employees and past applicants. Involve your marketing team so you’re also advertising your business through the outreach.
And while not a common practice, at least one company recently mentioned it’s exploring rehires. Every situation is unique. Do you have past employees that are worth connecting with again? Have company policies changed that could make a past employee a better fit?
If you’re able to hit your goal and be fully staffed, continue to take names and applications. Turnover is inevitable and it’s probably just around the corner.
It's not all bad
There is a silver lining. After all, it’s better to not have enough workers then to be fully staffed without business. And demand continues to be strong. U.S. retail sales rose 0.7% in September and August gains were bumped to 0.9%.4
As pandemic-related issues recede, the labor pool should start to rebound as people exit the sidelines, although the recent OSHA vaccine mandate could cause some headwinds. But that’s just another reason to implement these strategies now to provide the advantage you need to continue growing.
1 U.S. Bureau of Labor Statistics
2 NACS
3 NFIB
What to Read Next.
Fuel Services Midyear Update: Time for C-Stores to Plan for the Future
None | June 30, 2021 Fuel Services
The fuel industry continues to be in a good position as we cross the halfway point in 2021, and certainly in a much better position than when the pan…
Continue Reading>
Tell us three simple things to
customize your experience.
