Retail Counts the Cost of Christmas

Recruitment firm Adecco today announces figures, which estimate the cost to the retail industry of staffing the Christmas rush to be over 150 million, with 90,000 temporary staff being brought into the sector over the festive period.

This increased staff requirement is expected to see HR and Store Managers devote up to 20 to 30 percent of their time in the run up to Christmas to finding and managing suitable staff to handle the increase in business. This takes the cost of Christmas even higher when counting the additional internal training and workload placed on the HR and in store resourcing functions. Temporary staff will be expected to be working an average of 20 hours a week across a two-month period from November until the end of December, but some will work 40 to 50 hours, as Christmas gets closer. Extra staff will be required on the shop floor, but also in warehouses and distribution positions throughout the country, to ensure that goods reach the shelves on time.

The figures have been taken from an analysis by Adecco of the recruiting needs of some of the UKís largest retailers. Recruitment figures for 2004 remain consistent with those from 2003; dispelling speculation that Christmas spending is on the decline this year. A survey by debit card provider Switch / Maestro shows 53 percent of retailers believing public spending on Christmas will be higher than last year.

Sarah Blancke, Head of Adecco Retail, comments,
Christmas is the busiest time of the year for the retail sector, when preparation for recruiting, selecting and training temporary staff is key. This process can be one of a retailers highest costs in terms of store management, time and resource.

In order to avoid unnecessary recruiting and HR overheads retailers have to count the cost of Christmas carefully. With some large high street brands recruiting in the thousands to ístaff-upí at Christmas, the festive season is an increasingly strategic aspect of HR in the retail sector.

Sarah continues, With the potential increase in sales being up to 50 percent in the last quarter of the year, it is crucial that retailers satisfy the demand and recruit a reliable, flexible workforce over the festive period. If poor customer service hits the bottom line, business can be counting the cost of Christmas well in the New Year.