Is it time to change your retail staffing model?

retail staffing model

What is the size of the gig-economy? In the past year, it was almost $800 billion in annual spend with roughly 45 million people picking up gig jobs. That is a whopping 30% of the workforce taking part according to Staffing Industry Analysts. If you have not adopted the on-demand workforce model yet, you will need to. The staffing industry has not changed in that past 30 years making it even more difficult to keep up with the modern-day challenges and changes.

The most obvious benefits are in the retail industry and their supporting brand partners. But it isn’t just in retail that makes up for the biggest area that needs change. These changes are impacting other industries such as real estate brokers, field technicians, and the health care industry.

Retail, however, is the most vulnerable if they do not take a look at their current workforce model and how to best position it for the future workforce. Some areas retail will benefit from an on-demand or contingent workforce are:

Reducing High Turnover 

The biggest challenge is the high turnover rate in the retail industry. Few would argue that. Some retail sectors experience a turnover rate as high as 70%. Retailers often overspend on staffing just so they can schedule the right amount of people. Retail is a taxing position. The expectations are to work nights, weekends, and on holidays. The changing schedules and low starting pay do not play in favor of the retailer or manufacturer. On-demand workers can fill the gaps for retailers. One suggestion is to hire a part of your staff as an on-demand employee.

Improving Seasonal Coverage 

Retailers, manufactures and shipping companies bring on part-time workers in droves during peak selling seasons. Many start ramping up for this 6 months prior to the start of their season. Because seasonality comes in peaks and valleys, utilizing an on-demand workforce allows you to staff up and down as needed in a moments time.

Consumer Trends

Consumer trend dependency is extremely difficult to manage. Retailers and manufacturers are at the mercy of the economy. Consumer behaviors greatly shift and can be difficult to predict. Sales revenue looks much different during a recession than it does in a thriving economy. Consumers tend to shift their purchases towards necessity items rather than luxury items. On-demand staffing allows retailers and brands to react accordingly and shift their staffing needs from one department to another or to scale back entirely.

Stop being reactive!! 

Putting in place a model that supports an on-demand workforce does not happen on its own. It’s a very common strategy to use on-demand workers to address a change in demand, but it’s also about taking a reactive approach. Utilize a technology-based company like AllWork to show you how to operationalize this model while lowering the costs you incur with a staffing agency.

There is a better way to manage your labor force. Do your due diligence and evaluate your current labor model. How effective is it really? Can it be made better?

Want to learn more about how AllWork can help you change your retail staffing model? For more information, or to see a full demo of the AllWork platform, contact us at