Labor Woes Drive Stores to Digital Solutions
Published: March 28, 2023
Updated: July 28, 2025
“Now Hiring.” It’s a sign that’s become all too familiar across storefronts nationwide. Since the retail sector began its gradual rebound from the pandemic, finding dependable, long-term employees has remained a persistent challenge. Despite a low national unemployment rate, the U.S. Chamber of Commerce’s America Works Data Center reported that by the end of 2024, there were 8 million job openings—but only 6.8 million unemployed workers to fill them.
The Labor Crunch: More Than Just a Numbers Game
Retailers aren’t just struggling to find workers—they’re grappling with a complex set of labor-related challenges:
Rising labor costs: Wages, including minimum wage increases, along with expanded benefits and training requirements, are driving up the cost of staffing.
Demand for flexibility: Many workers are balancing caregiving responsibilities or multiple part-time jobs, making flexible scheduling a must - which complicates hiring and retention.
Evolving customer expectations: Today’s shoppers expect more than just help finding products. They want personalized recommendations, seamless service, and options like delivery, curbside pickup, and BOPIS (buy online, pick up in store). This raises the bar for employee knowledge and efficiency.
The Solution? Smarter Tech
To bridge the labor gap, retailers are increasingly turning to technology. When implemented effectively, retail tech can streamline operations, reduce the need for large in-store teams, and improve the overall customer experience.
Simplicity is Key
Retail has always faced high turnover. In fact, nearly one-third of new hires leave within the first six months. That’s why it’s critical to equip employees with tools that are intuitive and easy to use from day one.
“A point-of-sale (POS) system that’s simple to learn and operate is essential,” says Dan Nesmith, founder and president of Paladin Data Corporation, a leader in digital retail solutions. “A user-friendly interface helps even tech-shy employees become productive quickly, making their jobs easier and more enjoyable.”
A Real-World Example: Red Oak Hardware Hank
Mark Jackson took over a small hardware store in Red Oak, Iowa, back in 1983. At the time, operations were entirely manual.
“When we first started, we hand-wrote every ticket and transferred them to the ledger at the end of the day,” Mark recalls. “Back then, Al Gore hadn’t invented the internet yet,” he jokes.
Since then, Mark has expanded his business to include a Hallmark store and an Ashley furniture outlet. To manage it all, he adopted the Paladin Point of Sale system.
“The system is so easy to use,” he says. “Even if someone’s never touched a computer before, we can have them up and running the same day. Before Paladin, there was a real learning curve.”
Boosting Retail Efficiency with Smart Technology
Retail technology is designed to make operations more efficient by automating the time-consuming, repetitive tasks that come with running a store. From inventory management to sales reporting, modern systems are helping retailers do more with less.
Smarter Systems, Leaner Teams
Comprehensive point-of-sale (POS) and retail management systems streamline daily operations by:
- Generating suggested orders
- Submitting purchase orders electronically to multiple suppliers
- Simplifying receiving, sales, bookkeeping, and more
These tools empower employees to be more productive 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.
Mobility: Retail Beyond the Register
Retail transactions are no longer confined to the checkout counter. Mobile point-of-sale (mPOS) systems gained popularity during the pandemic and continue to enhance customer service today. Whether it’s checking stock in the aisles or completing sales in remote areas like garden centers or lumberyards, mobility is a game-changer.
The PaladinGo™ app enables sales from virtually anywhere with an internet connection—pop-up shops, outdoor departments, or even community events.
Mobility also supports remote store management. With mobile access to business systems, owners and managers can stay connected from home or on the go.
“Paladin Pilot is the best program I’ve ever used,” says Denise Page of Lands End Marine Supply in Provincetown, Massachusetts. “It started during COVID when I needed to work from the kitchen counter while the kids were home. Now, we use it all the time.”
Centralized Control, Simplified Operations
Modern POS systems go far beyond sales and inventory. Many integrate with specialized tools to handle:
- Lumber and building materials calculations
- E-commerce and online order fulfillment
- Daily accounting and reporting
- Rental department coordination
- Customer loyalty programs
- Workforce management
These features help retailers streamline operations and reduce manual work.
Dennis Gamble, owner of Tri-County Hardware and Farm Supply in Florida, saw a major improvement in his bookkeeping process.
“It used to be labor-intensive to prepare the paperwork the accountant needed. Now, everything is done at the front desk. It’s saved me hours every week,” Dennis explains.
Upshot
Technology may not solve every labor challenge, but leveraging the full capabilities of a modern POS system can dramatically improve efficiency, reduce overhead, and help retailers thrive—even with smaller teams.
