4 Ways AI-Powered Solutions Are Revolutionizing Retail Hiring

Retailers are eagerly embracing AI technologies to enhance both customer experience and backend operations. The retail industry ranks second only to banking in terms of investment in AI, according to market research firm IDC—and those investments are paying off. In 2023, retailers using AI and machine learning technologies enjoyed sales growth 2.3 times higher and profits 2.5 times higher than their competition, IHL Group reports.

Customer service chatbots, analytics tools that enhance supply chain efficiencies, and personalized purchase recommendations are among the many ways AI improves the customer experience. However, 57% of retailers in an NVIDIA survey believe AI’s biggest potential is improving the employee experience—which begins with the hiring process.

With retail job openings in Q1 2024 up 39% from the prior quarter, leveraging AI tools and automations can give your talent acquisition team the edge. 

Read on to learn how forward-thinking TA professionals are using AI to hire and onboard retail candidates faster.

The high turnover endemic to retail costs employers time and money. AI can minimize turnover and enhance hiring efficiency by helping you write job descriptions tailored to each role. Employment website Indeed reports job descriptions created using its generative AI-based tool attracted 16% more candidates. Recruitment-specific AI tools, which may be offered by hiring platforms like Indeed or in your existing ATS solution, are typically more efficient and effective than general AI tools such as ChatGPT.

You can also attract more qualified candidates by using AI to help:

To ensure compliance with your company’s employment policies and relevant laws and regulations, it’s best practice to have all documents created using AI undergo human review before publication. A good way to think about AI writing tools is that they move the starting line forward; instead of staring at a blank page, your team starts with a draft that’s close to it’s final form. 

4 in 10 retail workers in a recent Checkr survey say searching for retail jobs is stressful. Eager to end the exhausting job search, top candidates are likely to accept the first offer they receive—meaning quick follow-up could be the key to winning top candidates. Unfortunately, 51% of retail workers Checkr polled feel as if hiring managers never even see their applications.

Responding rapidly and engaging proactively is essential to keeping qualified candidates’ interest, but keeping up with a flood of applications can be challenging for busy TA professionals. AI can help reduce the burden on your TA team while making candidates feel cared for. Consider implementing solutions like: 

AI-driven communications can urge candidates to take the next step in the hiring process, keep your organization top-of-mind for your top picks, and help prevent ever-dreaded candidate ghosting.

You expend effort and capital to attract candidates, but unless you have the resources to review every application quickly, qualified candidates may slip away. The need for speed in screening retail job applications is growing, especially for large retailers hiring seasonally or at scale. 

Applications per opening (APO) for retail positions rose 31% year-over-year in April 2024, iCIMS reports. What’s more — full-time roles are taking center stage. 

Perhaps due to the rise in applications, the average time-to-fill for full-time retail jobs increased to six weeks. What can you do to beat this tough timeline and get the best candidates to choose you?

Today’s rapidly evolving retail environment requires more skills, adding to the complexity of evaluating candidates. In a typical day, a retailer’s workers may handle everything from order picking to customer service to inventory management. Ease the pressure on TA teams by employing a modern ATS/HRIS solution that uses AI to capture, organize, and filter candidate information from resumes and applications.

Traditional keyword searches can inadvertently hide qualified candidates from view, but today’s AI-powered data sorting tools can conduct a more nuanced analysis. For example, AI can help surface candidates with the soft skills needed for retail success, such as communication, time management, and conflict resolution. 

Further streamline candidate tracking by opting for AI-powered tools that integrate with your existing HR tech stack and provide all candidate information into an easy-to-use dashboard. This eliminates the need to re-input data into multiple applications—a time-consuming process that’s prone to human error.

Keep in mind that, as with any hiring technology, you should ask your provider how their solutions prevent bias (helping you mitigate risk of discrimination and non-compliance).

Conducting retail background checks to help mitigate risk and maintain compliance is an essential step in many retail employers’ hiring processes. Unfortunately, background checks are a common stumbling block to rapid retail hiring, especially for TA and hiring teams still relying on manual processes.

Some 23% of retail workers are unhappy with how long the hiring process takes, Checkr’s recent survey reports. Instead of letting slow background checks cost you qualified candidates, gain an advantage over the competition by using an AI-powered background check solution.

Human review will always be necessary for background screenings, particularly for adjudication, individualized assessments, and other sensitive stages of the process. But there are plenty of manual tasks that you can delegate to AI tools, freeing your TA team for more important work. Look for AI-powered solutions that can:

 In today’s competitive retail labor market, employers who offer an efficient, enjoyable hiring experience attract top talent. AI-powered solutions can help retail TA teams do everything from writing job descriptions to reviewing candidates and conducting background checks.

Checkr’s modern background check platform delivers rapid turnaround times and a user-friendly candidate experience designed to reduce dropoff. Automated candidate communications, customizable adjudication filters, and easy integration with leading retail ATS/HRIS tools ease burdens on your TA team. Minimize manual effort and enjoy fast, scalable retail hiring with Checkr.

About the author

Karen Axelton writes about business topics and best practices. She has written hundreds of articles on business subjects, including background screening, hiring and employment trends, human resource management, and the use of technology in the workplace. Her work includes educational articles, e-books, white papers, and case studies.