Before the pandemic, conventional labor market in e-grocery segment constituted the market of candidates. It was a candidate who selected the employer. Several similar offers were at the same time available to any applicant, provided compliance with the basic criteria of vacancies. A company representing its vacancy better, guiding a candidate through all recruitment stages faster, and offering better conditions will benefit. Delay or unwillingness to change in the race for candidates resulted in staff shortage for the retailers, especially in highly competitive locations like Moscow and North Western Regions.
Pandemic Makes Allowances
During the self-isolation, popularity of the conventional market has changed. In that period, employers have been recruiting from the large number of laid off candidates, who have lost their jobs or who have passed to minimum wage due to reduction of sales volume. It was especially obvious in industries affected by significant limitations on interoperation with buyers, for instance, in fashion retail, HoReCa, and other domains. Moreover, food retail segment has limited, though not suspended its activity. Some companies have started actively recruiting the staff (neighborhood stores), and others – reducing recruitment volumes (hypermarkets and supermarkets in shopping centers).
The situation has also changed for online trade or e-grocery segments. Before the pandemic, such market was quiet small in part related to recruitment and, in fact, it lacked conventional bulk recruitment. Thus, unprecedented rise in demand for staff in e-trade segment could be called the key event of spring 2020.
As compared to the period preceding the self-insulation, volume of orders of some companies has jumped ten times. Demand for couriers, panel builders, and drivers arose to level where labor market in such segment became the market of candidates for the first time. It was due both to high demand for potential candidates, and to certain degree of limitation, immaturity of staff capacity of such specialties.
Race for Resources and Comprehensive Approach
Contrary to expectations, after lifting of limitations consumer habits of the buyers did not follow the old patterns. E-trade continues expansion. It could be assumed that in the next few years it would be also difficult to recruit staff meeting the growing business needs in such segment – number of vacancies for one potential candidate would steadily grow.
To create competitive advantage at such complex labor market, it is necessary to apply new, more advanced and effective recruitment tools already today. To win the race for resources, e-grocery representatives shall in general reconsider their approach to recruitment process and move to more contemporary and complex one. It involves management of recruitment channels, building and optimization of business processes, as well as further escorting of the candidates. Possible challenges in recruitment, such as non-effectively built processes, limitations of labor market, and high competition for staff should not become barriers to business growth.
Self-Employment Perspectives
Recently, many companies are covering part of staff shortage by recruitment of self-employed for certain types of works, rather than by following the conventional recruitment procedure. It allows getting access to labor resources which were inaccessible before. Now, when both parties are legally protected, companies are more willing to employ freelancers, and persons willing to work according to flexible schedule, by task-rate system, and many others.
For representatives of e-trade segment, working with self-employed is not only way to expand recruitment of its “field” resources, but also is an excellent opportunity to diversify risks. Volume of demand for orders of end customers constantly evolves, whilst engagement of self-employed allows flexibly addressing all changes without engagement of the excessive number of full-time resources.
It also implies complexities. This tax regime is relatively new for our economy and in order to address potential concerns of the candidates, companies are forced to devote significant time for its popularization and customization within the scope of the industry.
Mistrust is often a consequence of the lack of awareness. Most concerns of the applicants could be addressed by specialized ecosystems for support of self-employed. Besides the explanatory content, they should also have useful services: banking, legal, and HR. They should strike out majority questions. Significant increase in capacity of available resources for fulfillment of orders in e-trade segment could be an additional advantage of ecosystems. It is also important.
“Market of Shifts” and Recommendation Systems
Another tool for engagement of additional resources could be more effective use of the existing staff. Alternatively, it could be introduction of internal “markets of shifts”.
By redistribution of resources, part of rates could be covered by own employees. Let us suppose that a company opens ten stores in one location. One of stores faces problems with staff. If employees of the remaining nine objects are notified, there would certainly be an employee willing to take the additional hours. Such demand could be addressed by secondary employment, taking shifts, etc. Certainly, it could be possible if an employee has sufficient number of free hours within the scope of regular business week.
“Markets of shifts” could be created as topsides to already operating staff management system (Аpplicant Tracking System), i.e. as an additional section or as a separate, autonomous portal for employees. External providers of outsourcing services could be connected to the platform. At any time they could address part of the company’s needs out of their own human resources by reserving the available shifts and by automatic billing.
Recommendation systems like “Bring your friend” programs are also quiet effective. Especially, if they have elaborated mechanics and incentives systems meeting the type of recruited positions.
Competitive Advantage Tools
As a professional provider of bulk recruitment services, we see that robotic automation of routine client processes is still far too slow. From the other side, demands for human resources from the retail, especially e-grocery, after self-insulation period only grows. – reference on the margins.
Comprehensive or systematic approach could be a competitive advantage in race for staff in e-trade segment. Let us remember the suitable tools.
First of all, it is modern recruitment process using marketing channels for attraction of the applicant flow and advanced set of tools for automation of operations with the candidates. Secondly, built-in ecosystem for interoperation with natural persons according to self-employment model. Thirdly, internal “market of shifts” for recruitment of staff for secondary employment purposes, as well as engagement of external outsourcing providers.
In general, already today all of these could create a sustainable system of supply of resources to companies in e-grocery segment, having released the business from the headache and having freed the management time and expertise for new advancements and further development.
Author: Maksim Minakov
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