Retailer builds lasting bonds with temporary workers

Seasonal hires have traditionally been viewed as a cut below their permanent full- and part-time peers at retail. Many take on their temporary employment for a period of weeks or months and simply do not have the knowledge and organizational backing (training) to serve customers on equal footing with associates employed year-round.

GameStop, the leading retail chain in the video game category, believes its "Grow and Go" employee development program has raised the performance level of its temps. The objective is to produce more confident temp workers, able to more effortlessly transition to permanent status if that is the path that makes sense for them. The program also aims to keep temporary workers coming back, holiday selling season after holiday selling season.

Matthew Hirst, senior director of human resources at GameStop, told RetailWire that the company plans to hire up to 23,000 seasonal employees to help serve customers over the holidays. Between 12 and 15 percent of those will become permanent workers, while "a significantly higher percentage" will return to the chain as seasonal hires.

For those who do not return, GameStop is hoping that a positive experience will inspire them to recommend the company to friends and family looking for seasonal work.

Matthew Hirst GameStop

Matthew Hirst, senior director of human resources at GameStop – Photo: GameStop

A key to GameStop’s success, according to Mr. Hirst, is its approach to training that has workers going through the same process whether they are a permanent hire in June or a seasonal one in October.

"Because we have a fully interactive learning platform, they have the opportunity to engage with that on their first day," said Mr. Hirst. "And then they work closely with their leadership team in the store to practice what they have learned. So we have the opportunity for them to experience the learning through a technology supported program that we call Level Up Interactive, and then they have the opportunity to practice that and receive additional feedback and guidance from their managers."

A key element to GameStop’s success is a corporate culture, according to Mr. Hirst, that "values ideas over status" and where "empowered leaders make bold, creative decisions focused on others’ well being."

On wages, Mr. Hirst says GameStop uses market surveys to remain competitive. The key issue when it comes to pay, he said, comes down to fairness. Are workers paid based on the value they add to the organization? Are the receiving the training they need? Are their opinions valued? If the answer is yes to all of the above, then engagement and retention levels improve and the business thrives.

BrainTrust

"With the labor market tightening, it’s more important than ever for retailers to treat their employees with the respect necessary to retain their services. Why go through the expense of finding, hiring and training new workers when they might already be temping in your store?"

Max Goldberg

President, Max Goldberg & Associates


"GameStop does a lot of things well in customer engagement and retention. Oh, and incidentally, as a share holder I can tell you it does NOT hurt their operating margins! A lot of employers, retailer and otherwise, could take a lesson."

Ben Ball

Senior Vice President, Dechert-Hampe (retired)


Discussion Questions

How important are seasonal workers to the performance of most retail organizations? What are the keys for retailers looking to get the biggest return on their human resources investment in seasonal workers?

Poll

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Max Goldberg
Max Goldberg
8 years ago

With the labor market tightening, it’s more important than ever for retailers to treat their employees with the respect necessary to retain their services. Why go through the expense of finding, hiring and training new workers when they might already be temping in your store?

Tom Redd
Tom Redd
8 years ago

This is a key area for retailers — they sell the most and gain the most margins during the top seasons, thus it is the best time to invest extra in the seasonal teams. Also a fast learning time for the associates that are seasonal.

My son started as a seasonal at GameStop, learned tons, and become full-time and a top performer. He gained a following of shoppers that depended on him for game and tech advice. When he left, GameStop was sad to see his selling skills depart. He was top in the store for upselling, which he learned during seasonal training. Focus on the seasonals — they are real added sales engines.

Ralph Jacobson
Ralph Jacobson
8 years ago

For those retailers that rely on seasonal staff, it is critical to make them feel welcome and important. Whether they are large or small retailers, it is very possible to leverage a positive corporate culture to temporary workers in order to help retail the best staff for future needs and reduce new hire expenses.

Michael Greenberg
Michael Greenberg
8 years ago

Every retailer has to look at this through the same lens: Will the incremental productivity and retention pay for the incremental training investment?

For retailers who have training nailed (like GameStop), the denominator in that equation is smaller. So until a retailer has invested in inexpensive, highly-efficient training, it’s hard to justify full training for seasonal workers.

That being said, better training is one of the very best sources of ROI in retail. So hopefully retailers see the “invest in training > better training systems > better trained seasonal employees > more revenue, talent acquisition and retention” value chain as something worth budgeting for in 2016.

Ben Ball
Ben Ball
8 years ago

It is great to see an inspiring, positive story amid all the recent hubbub about seasonal/part-time/contract workers. GameStop does a lot of things well in customer engagement and retention. It is clear that much of that success is derived from treating ALL their employees exactly the same way. Oh, and incidentally, as a share holder I can tell you it does NOT hurt their operating margins! A lot of employers, retailer and otherwise, could take a lesson.

Mel Kleiman
Mel Kleiman
8 years ago

GameStop has figured it out.

  1. Full-time, part-time and seasonal employees don’t want to look dumb. They want to be trained and they want to be valued.
  2. Make the first day a great day and employees will stay longer.
  3. Once you have invested money in seasonal employees get a return by getting them to come back when they are needed.
  4. Pay them for the value they add, not for showing up.
Ed Rosenbaum
Ed Rosenbaum
8 years ago

Not only is this a good program for the retailers, it is excellent for the seasonal employees. How terrific could it be for a college or high school student to know they have a job and income when they are on break? I recall coming home from college and working good hours at the Post Office over the holiday season. It meant a lot not only to have something to do, but to have money to return to school.