An average time-to-hire of 40 days. Hiring costs in excess of $2,000 per candidate. An average turnover rate of 60-70%.
The challenges of hourly recruitment in the retail industry have been well-documented.
Despite this, many of the largest companies persist with old-school recruitment processes.
Given the break-neck pace and scale of the industry, it’s hard to diagnose and fix the problem.
Understandably, many HR leaders have been quick to layer on technology solutions that seem to make things easier; in actuality, these tech solutions have added complexity, making efficiency gains difficult and actionable insights hard to find.
The big and unmanageable HR tech stack
Where recruitment is concerned, a HR tech stack tends to look like this: an unwieldy ATS, often coupled with a conversational AI or scheduling tool.
This stack is implemented across a decentralized system – hundreds of stores across the country – resulting in a situation where hiring managers are forced to use systems they don’t understand and don’t like.
The bottom line is this: Retail companies are overstacked, overworked, and need to adopt different solutions to old problems.
1. Solve high turnover through soft skill and personality trait matching
One of the biggest challenges with recruitment at major retail companies is high turnover rates. Retail staff members move fast and often, and have a high likelihood of migrating to competing businesses.
This is partially a nature-of-the-beast problem, but if we better understand what makes people tick, we can better match them to the roles at which they’re likely to succeed, and therefore keep them longer.
For example, we know that the best retail cashiers are high in extraversion. They’re energized by being around people, have good interpersonal skills, and have a lower likelihood of experiencing negative emotion while on the job.
It makes sense, then, to prioritize extraversion when matching candidates to the role of cashier. That’s a personality trait – with attendant soft skills – that will predict success for that role.
When people are matched to the job for which they are best suited, they’ll experience higher levels of purpose and satisfaction. It’s obvious why – the daily activities will invigorate rather than drain them. People who have purpose stay longer.
Therefore, if you accurately match soft skills to roles, you’ll reduce churn. Our AI Smart Chat Interviewer is really good at this: Across the board, our skill-matching power reduces non-regrettable churn by a minimum of 25%.
Side note: HEXACO is your secret weapon
If you’re keen to get started measuring soft skills, download our HEXACO job interview rubric. It features more than 20 interview questions designed by our personality psychologists to assess the skills of candidates that come your way. It will even help you figure out what soft skills are best for you based on the needs and values of your organization.
2. Reduce competition from other employees through smart employer branding
Chances are, when your employees or candidates leave, they’re probably staying within the industry – and that means they’re likely going to your competitors. It’s 2023, and the stock-standard advice would be to offer higher wages and perks.
That’s not always feasible, and besides, there’s no guarantee that doing so will markedly reduce the threat of poaching and abandonment. Money is important, but it doesn’t trump purpose and belonging.
The key to better employer branding is a system for active listening. Find out what your people, be they employees or candidates, think. Ask them often. It’s important to do this at the onboarding stage, but it should continue through to the point of highest churn – the six-month mark.
Our joint report with Aptitude Research uncovered some interesting data on the importance of two-way feedback between candidates and employers.
Gathering and acting on mutual feedback:
- Boosts quality of hire from 36 to 58%, on average
- Boosts candidate experience from 34 to 44%, on average
- Improves first-year retention from 35 to 50%, on average
An NPS (Net Performer Score) framework is a good place to start. How likely are you to recommend our company to a friend or colleague?
The NPS tracking question is easily configurable and embeddable into automated emails, meaning it can be set up through your ATS with little additional work.
When you begin to analyze the data, keep things simple: Dump the data into a spreadsheet, and look at your average numbers. If your score is below 0, you’ve got work to do – if it’s 0 to +30, you’re doing well. 30+ and over, well done!
(If you’re reading this, it’s probably not likely that you’ll get a 30+ score on the first go-round. That’s okay – the goal is to find out how much work you’ve got to do.)
The benefit of benchmarking NPS is that it gives your business a single, easy-to-understand proxy for employee engagement. Once you’ve got the number, you can start to make small changes and see how that affects the overall number.
3. Increase your talent pool by limiting candidate abandonment
We hear it all the time: Sourcing is a big problem. When we ask customers about their current processes, however, a common problem emerges: We don’t really know how many people we’re losing from our recruitment funnel, and why.
This presents a great opportunity: Often, improving an application process means removing things, rather than adding them.
Conventional wisdom tells us that the longer your application and interview process goes on, the higher your dropout rate will be. But that’s a generalized issue – it tells you nothing about how to fix the problem, beyond simply making it shorter. You need specific, localized data to diagnose and fix your leakage spots.
Data from a 2022 Aptitude Research report on key interviewing trends found that candidates tend to drop out at the following stages, in the following proportions:
- 22% of candidates drop out at the application stage
- 24% at the screening stage
- 25% at the interview stage
- 18% at the assessment stage
- 9% at the offer stage
Let’s say that you had 100 visitors to your careers (or job ad) page, and 20 of them completed the first-step application form on that page. You’ve lost 80% of your possible pool right there. Not great, but at least you know – now you can examine that page to uncover possible issues preventing conversion.
Is the page too long? Does it have too much text? Is the ‘apply’ button clearly shown? Is the form too long, requiring too much information to fill out? Are your perks/EVP attributes clearly displayed?
We’ve got an in-depth guide for measuring and improving your abandonment rate here.
Related
Blog
Humanising hiring: the largest study of AI candidate experience ever
This is the state of hiring in 2025. Too often, candidates are ghosted, ignored, and reduced to a CV. Recruiters are forced to make decisions in data poverty, with scraps of information like grades, job titles, or where someone has worked before. Privilege gets rewarded; potential gets overlooked.
For the first time, we now have evidence that AI, when designed responsibly, brings humanity back to hiring.
The largest research study of its kind
Sapia.ai has released the Humanising Hiring report. The largest analysis ever conducted into candidate experience with AI interviews. The study draws on more than 1 million interviews and 11 million words of candidate feedback across 30+ countries.
Unlike surveys or anecdotal reviews, this research is grounded in what candidates themselves chose to share at one of the most stressful moments of their lives: applying for a job.
The findings are bold and unprecedented
- 9.05/10 average candidate satisfaction across all groups and industries
- 81.8% of candidates left written feedback — engagement at this scale has never been seen before in hiring research
- 8 in 10 candidates would recommend an employer just because of the interview
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30% more women apply when told AI will assess them, resulting in a 36% closure of the gender gap
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98% hiring equity for people with disabilities through a blind, untimed, mobile-first interview design
Candidate voices
Here’s what candidates themselves revealed:
“None of the other companies I’ve applied to do this sort of thing. It’s so unique and wonderful to give this sort of insight to people… whether we get the job or not, we can take away something very valuable out of the process.”
“That felt so personal, as if the person genuinely took the time to read my answers and send me a summary of myself… that was pretty amazing.”
Expert validation
“This study stands out as one of the most comprehensive examinations of candidate experience to date. Analysing over a million interviews and 11 million words of candidate feedback, the findings make clear that responsibly designed AI has the potential to fundamentally improve hiring — not just by increasing speed, but by advancing fairness, enhancing the human aspect, and leading to stronger job matches.”
— Kathi Enderes, SVP Research & Global Industry Analyst, The Josh Bersin Company
Proof that AI can be human
The research challenges the idea that AI dehumanises the hiring process. In fact, it proves the opposite: when thoughtfully designed, AI can restore dignity to candidates by giving them a real interview from the very first interaction, giving them space to share their story, and giving them timely feedback.
With Sapia.ai’s Chat Interview:
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Every candidate gets the same structured, role-relevant questions.
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Interviews are untimed, so candidates can answer at their own pace.
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Bias is monitored continuously under our FAIR™ framework.
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Every candidate receives personalised feedback.
This isn’t automation for the sake of speed. It’s intelligence that puts people first, and it works. Leading global brands, including Qantas, Joe & the Juice, BT Group, Holland & Barrett, and Woolworths, have all transformed their hiring outcomes while enhancing the candidate experience.
Why it matters now
Applicant volumes are exploding. Boards are demanding ROI on people decisions. And candidates expect fairness and agency. Sticking with the status quo — ghosting, inconsistent interviews, CV screening — comes at a real cost in brand equity, lost talent, and wasted time.
It’s time to move from data poverty to data richness, from broken processes to brilliant hiring.
Download the report
This is the first time candidate feedback on AI interviews has been analysed at such scale. The insights are clear: hiring can be brilliant.
👉 Download the Humanising Hiring report now to see the full findings.
Blog
What’s More Ethical: Measuring Skills or Guessing Them?
Barb Hyman, CEO & Founder, Sapia.ai
Why skills data matters for HR and CHROs
Every CHRO I speak to wants clarity on skills:
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What skills do we have today?
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What skills do we need tomorrow?
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How do we close the gap?
The skills-based organisation has become HR’s holy grail. But not all skills data is created equal. The way you capture it has ethical consequences.
Two very different approaches to skills analysis
1. Skills inference from digital traces
Some vendors mine employees’ “digital exhaust” by scanning emails, CRM activity, project tickets and Slack messages to guess what skills someone has.
It is broad and fast, but fairness is a real concern.
2. Skills measurement through structured conversations
The alternative is to measure skills directly. Structured, science-backed conversations reveal behaviours, competencies and potential. This data is transparent, explainable and given with consent.
It takes longer to build, but it is grounded in reality.
The risks of skills inference HR leaders must confront
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Surveillance and trust: Do your people know their digital trails are being mined? What happens when they find out?
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Bias: Who writes more Slack updates, introverts or extroverts? Who logs more Jira tickets, engineers or managers? Behaviour is not the same as skills.
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Explainability: If an algorithm says, “You are good at negotiation” because you sent lots of emails, how can you validate that?
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Agency: If a system builds a skills profile without consent, do employees have control over their own career data?
A more human approach: skills measurement
Skills define careers. They shape mobility, pay and opportunity. That makes how you measure them an ethical choice as well as a technical one.
At Sapia.ai, we have shown that structured, untimed, conversational AI interviews restore dignity in hiring and skills measurement. Over 8 million interviews across 50+ languages prove that candidates prefer transparent and fair processes that let them share who they are, in their own words.
Skills measurement is about trust, fairness and people’s futures.
Questions every HR and CHRO should ask
When evaluating skills solutions, ask:
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Is this system measuring real skills, or only inferring them from proxies?
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Would I be comfortable if employees knew exactly how their skills profile was created?
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Does this process give people agency over their data, or take it away?
The real test of ethics in the skills-based organisation
The choice is between skills data that is guessed from digital traces and skills data that is earned through evidence, reflection and dialogue.
If you want trust in your people decisions, choose measurement over inference.
To see how candidates really feel about ethical skills measurement, check out our latest research report: Humanising Hiring, the largest scale analysis of candidate experience of AI interviews – ever.
FAQs
What is the most ethical way to measure skills?
The most ethical method is to use structured, science-backed conversations that assess behaviours, competencies and potential with consent and transparency.
Why is skills inference problematic?
Skills inference relies on digital traces such as emails or Slack activity, which can introduce bias, raise privacy concerns and reduce employee trust.
How does ethical AI help with skills measurement?
Ethical AI, such as structured conversational interviews, ensures fairness by using consistent data, removing demographic bias and giving every candidate or employee a voice.
What should HR leaders look for in a skills platform?
Look for transparency, explainability, inclusivity and evidence that the platform measures skills directly rather than guessing from digital behaviour.
How does Sapia.ai support ethical skills measurement?
Sapia.ai uses structured, untimed chat interviews in over 50 languages. Every candidate receives
Blog
Mirrored diversity: why retail teams should look like their customers
Walk into any store this festive season and you’ll see it instantly. The lights, the displays, the products are all crafted to draw people in. Retailers spend millions on campaigns to bring customers through the door.
But the real moment of truth isn’t the emotional TV ad, or the shimmering window display. It’s the human standing behind the counter. That person is the brand.
The missing link in retail hiring
Most retailers know this, yet their hiring processes tell a different story. Candidates are often screened by rigid CV reviews or psychometric tests that force them into boxes. Neurodiverse candidates, career changers, and people from different cultural or educational backgrounds are often the ones who fall through the cracks.
And yet, these are the very people who may best understand your customers. If your store colleagues don’t reflect the diversity of the communities you serve, you create distance where there should be connection. You lose loyalty. You lose growth.
We call this gap the diversity mirror.
What mirrored diversity looks like
When retailers achieve mirrored diversity, their teams look like their customers:
- A grocery store team that reflects the cultural mix of its neighbourhood.
- A fashion store with colleagues who understand both style and accessibility.
- A beauty retailer whose teams reflect every skin tone, gender, and background that walks through the door.
Customers buy where they feel seen – making this a commercial imperative.
How to recruit seasonal employees with mirrored diversity
The challenge for HR leaders is that most hiring systems are biased by design. CVs privilege pedigree over potential. Multiple-choice tests reduce people to stereotypes. And rushed festive hiring campaigns only compound the problem.
That’s where Sapia.ai changes the equation: Every candidate is interviewed automatically, fairly, and in their own words.
- Bias is measured and monitored using Sapia.ai’s FAIR™ framework.
- Outcomes are validated at scale: 7+ million candidates, 52 countries, average candidate satisfaction 9.2/10.
- Diversity can be measured: with the Diversity Dashboard, you can track DEI capture rates, candidate engagement, and diversity hiring outcomes across every stage of the funnel.
With the right HR hiring tools, mirrored diversity becomes a data point you can track, prove, and deliver on. It’s no longer just a slogan.
Retail recruiting strategies in action: the David Jones example
David Jones, Australia’s premium department store, put this into practice:
- 40,000 festive applicants screened automatically
- 80% of final hires recommended by Sapia.ai
- Recruiters freed up 4,000 hours in screening time
- Candidate experience rated 9.1/10
The result? Store teams that belong with the brand and reflect the customers they serve.
Read the David Jones Case Study here 👇
Recruiting ideas for retail leaders this festive season
As you prepare for festive hiring in the UK and Europe, ask yourself:
- How much will you spend on marketing this Christmas?
- And how much will you invest in ensuring the colleagues who deliver that brand promise reflect the people you want in your stores?
Because when your colleagues mirror your customers, you achieve growth, and by design, you’ll achieve inclusion.
See how Sapia.ai can help you achieve mirrored diversity this festive season. Book a demo with our team here.
FAQs on retail recruitment and mirrored diversity
What is mirrored diversity in retail?
Mirrored diversity means that store teams reflect the diversity of their customer base, helping create stronger connections and loyalty.
Why is diversity important in seasonal retail hiring?
Seasonal employees often provide the first impression of a brand. Inclusive teams make customers feel seen, improving both experience and sales.
How can retailers improve their hiring strategies?
Adopting tools like AI structured interviews, bias monitoring, and data dashboards helps retailers hire fairly, reduce screening time, and build more diverse teams.