With the holiday season just around the corner, retailers are already beginning to hire additional employees to prepare for the increased store traffic. However, due to extreme holiday sales patterns, it can be especially difficult to measure the overall financial impact of adding seasonal employees and to ensure that each additional labor hour is profitable.
Since extended hours requiring supplemental labor have become a necessity during the holidays, retailers can benefit from leveraging insights from previous seasonal strategies to identify the optimal labor increase for each store. While it may be too risky to implement designed labor tests during the holidays, the past variation in seasonal labor at each store creates the opportunity to analyze “natural experiments” from last season. By comparing the performance of stores that increased holiday labor force to similar stores that did not, retailers can answer key questions surrounding labor strategy effectiveness, such as: (more…)