Target says staff could work 5 million more hours over the holidays

Target said Thursday that it is taking a different staffing approach this holiday season as it gears up for a rush of shoppers at stores and on its website: It will trim back seasonal hires and give more hours to existing employees.

In all, the discounter said it expects current store staff — about 300,000 people in total — will work 5 million more hours during the holiday season. That translates into more than $75 million of additional pay, it said.

Target still plans to hire about 100,000 seasonal employees — but that’s smaller than the over 130,000 that it hired for each of the past two holiday seasons, the company said.

The big-box retailer, which has more than 1,900 stores and about 350,000 employees, launched an app this summer that makes it easier for store workers to pick up an occasional shift. It allows staff choose times or swap hours on demand, adjusting for other obligations like parenting or attending a college class.

“The pandemic highlighted our team members’ needs for flexibility,” said Target’s Chief Human Resource Officer Melissa Kremer.

Retailers, including Target, are preparing for a holiday season that’s expected to be both busy and riddled with complications. Sales in November and December are expected to grow at least 7% year over year, according to three different forecasts by Bain & Company, Deloitte and Mastercard SpendingPulse. However, industry analysts say customers should expect to see fewer deals, more out-of-stocks and shipping delays as pandemic-fueled supply chain challenges ripple across the globe.

Staffing has become a key challenge, too, as many struggle to fill openings and retain workers — a problem that could translate to emptier shelves, sloppier stores, longer checkout lines and other frustrations.

Korn Ferry, a talent consulting firm, earlier this month polled 176 U.S. retailers to see if the companies were having trouble hiring, and only 2% responded that it wasn’t an issue.

When asked what measures the companies were taking ahead of the holidays to staff up, 74 businesses said part-time workers were being asked to take on additional hours; 63 said full-time workers were being asked to take on longer shifts; and 34 retailers said the hours stores are open are being reduced. Only 15 businesses told Korn Ferry staffing wasn’t an issue.

Target’s Kremer said the strategy of providing more hours to existing staff is part of a broader push to attract and hold onto high-quality workers. She pointed to a multiyear effort to raise Target’s minimum wage, which began before the pandemic. Starting pay of at least $15 an hour went into effect in July.

This fall, Target also began a debt-free education assistance program, which covers college tuition and contributes toward graduate programs. Walmart already had a similar program and Amazon recently announced the creation of its own. Many retailers have also been hiking wages as well.

Target’s Chief Stores Officer Mark Schindele said the company has listened to…