“Now Hiring” signs are everywhere. Despite the U.S. Bureau of Labor Statistics reporting that tens of thousands are joining the workforce, the labor force participation rate is still at 62.5%, below pre-pandemic levels. This means over 2 million workers are missing from the labor force compared to February 2020. 

How can retailers manage the worker shortage? ​

Leveraging Technology

To address the labor shortage, many retailers are increasingly turning to technology. When used correctly, retail technology can help stores operate more efficiently and reduce the need for staff on the sales floor. 

Ease of Use

An old business saying goes that about one-third of new hires will quit within the first six months. Therefore, setting new hires up for success with consistent processes and the right equipment can reduce employee turnover. 

A user-friendly point-of-sale (POS) system is crucial. It makes it easier and more enjoyable for employees to do their jobs. 

“A system with a user-friendly interface makes it easy for anyone, even those apprehensive about using a computer, to become productive after minimal training,” says Dan Nesmith, founder and president of Paladin Data Corporation, a leading provider of retail technology solutions. 

Mark Jackson took over a small hardware store in Red Oak, Iowa, in 1983, which operated very simply. 

“When we first took over, we hand-wrote our tickets and transferred them to the ledger at the end of the day. That’s how we did it. Back then, Al Gore hadn’t invented the internet yet,” he says. 

Since then, he has expanded the store several times and added a Hallmark store and an Ashley furniture store. He also incorporated Paladin Point of Sale to help run all his businesses. 

“The system is so easy to use, I can bring someone in here, and even if they’ve never seen a computer before, we can have them running the same day. Before Paladin, we had a learning curve,” Mark says. 

Efficient Operations 

The main goal of retail technology is to increase operational efficiency by reducing or eliminating time-consuming, tedious tasks. 

Comprehensive point-of-sale and retail management systems help stores by providing suggested ordering, electronically submitting orders to suppliers, and simplifying receiving, sales, bookkeeping, and more. They help workers do more with less effort. 

“The automation has allowed us to keep our staff lean. We have six full-time employees, and the rest are part-time, and our business runs very smoothly,” Mark says. 

Ben Honeycutt, a Marine Corps vet and jet fighter mechanic, spent years working for SpaceX, where he helped build hangars and launch pads for space flights. He purchased a hardware store in Orcutt, California, right at the start of the pandemic. 

It was a slow start, but PaladinNsight™ Non-Performing Assets and Investment Review tools helped him clean out inventory that wasn’t selling and replace it with items that were. He uses Paladin Suggested Order™ reports to speed up ordering and keep a tight rein on his inventory. Overall, Ben says he is impressed with how Paladin makes his job easier. 

“I worked for SpaceX for six and a half years, and my job was to find ways to save time and cut costs. That’s what I did. Paladin does this stuff for my store automatically,” Ben says. 

Mobility Matters 

More retail transactions are being made away from the checkout counter. Mobile point-of-sale (mPOS) terminals gained traction during the pandemic. In-store customers were hesitant to stand in long checkout lines, so many stores adopted mobile POS units to bust lines and create a better shopping experience. Now, they are often used to enhance customer service by checking stock and prices and completing sales in remote locations like lumberyards and garden centers. 

For merchants, mobile point-of-sale systems and other mobile devices go beyond just processing transactions. They can be used to check inventory, place orders, receive merchandise, and schedule and complete deliveries, even at delivery locations. 

Mobility also helps retailers keep track of their stores when they’re not present. Mobile access to a store’s business network allows store owners and managers to work from home or wherever they can get an internet connection. 

“Paladin Pilot is the best program I’ve ever used,” says Denise Page, who runs Lands End Marine Supply in Provincetown, Massachusetts, with her husband Jeremy. She uses Paladin’s remote access tools to work from home. “It started out being really helpful during COVID. Our kids are just old enough to get into the perfect kind of trouble. Paladin Pilot allowed me to work from the kitchen counter when the kids weren’t in school. Now, we use it all the time.” 

Centralized Business Management 

Today’s point-of-sale systems are much more than sales and inventory management tools. Many provide tools or integrate with specialty software providers to quickly calculate lumber and building materials orders, simplify e-commerce sales, daily accounting, rental department coordination, customer rewards programs, and workforce management. These tools make it easier to do more work with less effort. 

“This has been a labor-saver for me,” explains Dennis Gamble, owner of Tri-County Hardware and Farm Supply in Paxton, Florida, who relies on his Paladin system to simplify his sales and bookkeeping. “The way the accountant wanted our paperwork, it was labor-intensive to put together. We put in sales, cash, credit, checks, and accounts received by hand, and that better tally up to how much business we have done that day. Now, it’s all done at the front desk. It cut a lot of hours out of my week.” 

Conclusion

While technology can’t solve all the challenges of the labor shortage, utilizing all the tools available in a modern POS system can help retailers run their stores more efficiently and effectively.